How to Buy a Car, Using Game Theory

http://bigthink.com/ideas/41819

Bruce Bueno de Mesquita, author of The Predictioneer's Game, shares his foolproof method for getting your next car for the lowest price possible.

Category:

People & Blogs

Tags:

• bigthink

[brizihe]

This is how the free market should operate. Compete to give customers the best product at the lowest price

[danielt63]

@c0N3x In the industry it is called "shopping the price" which is every dealer's worst fear. All the dealerships in my area have the same policy, if you ask for a price over the phone you will be given the MSRP and the salesman will say, "If some other dealership quotes you a lower price, come in with that price and I will beat it."

[GeorgeRosebush]

If you have very good credit, they well sell at a loss if they are trying to get the old models off the lot to try and push the new ones. I was once offered a losing deal (at least that's what they told me). They guy explained to me exactly why they would take a losing deal, it has something to do with volume.

[DackIsBack]

@ScooperGetHype Can't you picture how insane you'd have to be to buy a brand new car for $20,000 then sell it for $18,000?! Loosing $2000 in the process...

What kind of LUNATIC does that?! It's not even a bad business practice- it's going full retard, NEVER GO FULL RETARD.

[DackIsBack]

@ScooperGetHype NOBODY SELLS AT A LOSS!!!!

N-O-B-O-D-Y.

Unless they're in the process of liquidation or bankruptcy that's the only time a business will sell at below market value.

[ScooperGetHype]

@DackIsBack That dealership may not sell at a loss. OK. You buy at some other dealership that will sell at a loss. Maybe they have had the car for a few months and can't sell it. Many reasons why someone may sell at a loss. This guy is simply applying logic to get the best possible price. Your aim is to buy this car. You must go into it in the mindset that "I am willing to spend the MSRP for this car. Let's see how much under that price I can get before 5pm, the AMOUNT saved is irrelevant".

[DackIsBack]

@danielt63 Bull... they will NOT sell at a loss, that's just ridiculous, they'll just sell it to someone else...

Don't even try it they'll think you're taking the piss, unless you know them REALLY well and they're your friend- then they might consider it, but they will most likely just laugh at you and tell you to leave the premises.

Nobody is dumb enough to sell at a loss when they can meet their profit margin at least partially.

Even when stores have sales they have a profit margin...

[MeakerSE]

@Dasifter Because you want the sale, any profit is better than no profit.