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Old 08-14-2015, 03:12 PM   #17
mikefocke
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Join Date: Aug 2005
Location: Sanford NC
Posts: 2,538
There is a human characteristic, well documented by economists, called "the endowment effect" (See The Economist June 21, 2008 Page 95) which says that people value an item irrationally highly because they own it when, if they didn't own it, it has been proven they would value it lower.

If you want that car, you have to either pay the higher price or risk that someone else will. And you have to be willing to wait.

When you are dealing with someone whose pricing is seemingly irrational, its just human nature. Your task is to find the motivated seller who can get beyond this feeling for one's own possessions and make a rational pricing decision. Here is a case where it pays to know the market and to know why the seller is selling.

Does he need to sell or is just bored and want to buy another car?

The first rule of negotiating is "there is another car just like this around the corner". The more you believe that, the firmer your negotiation will be. And the more you make the seller think that, the more flexible the seller will be if he has to sell. After all, you may be the rare potential buyer he needs. Come to the negotiating table with documentation.

Remember, there are hundreds of used Boxsters for sale today.
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