Consider three possible methods to sell a
car that you own:
1.Advertise it in the local newspaper
. 2. Take it to a car auction.
3. Offer it to a second-hand car dealer.
Would your reservation price be the same in each case? Why?
If you used the first method, would you advertise it at your reservation price? Which method do you think would result in the highest sale price?
Which method would you choose?
Answers
Answer:
No, the reservation price is not gonna be same in all cases as a second hand dealer would not understand the true value of car and consider it as a used product rather than a car. So definitely giving to second hand dealer will be a great loss. Advertising in local newspaper can be a bit more profitable than the second hand dealer one but it's price might get reduced due to the common bargaining. Taking in car auction will help in getting a better price definitely.
No, if I would adopt for the first method, I would never put the reservation price because of the bargaining tendency of costumers which may lead to my loss.
The second method i.e. to take the car at the auction would definitely be most beneficial of all these methods as there are many rich buyers and car lovers in the auction which may understand the true value of the car and I can definitely get a better price than the other two methods.
I would definitely choose the second method i.e. to take the car to auction for getting a better price.
Explanation:
Hope it helped!!!!!!!!