Question

you want to purchase a new vehicle and the dealer is offering you, well, almost nothing for the car you have now. So you're going to sell it outright. 1. Describe the competitive positioning you face and are going to take 2. Describe the tradeoffs you face with differentiation, the cost, and

Answer 1

When buying a car, it may be better to have a down payment rather than a trade-in. A trade-in offers convenience to the car buyer, since one can walk into a dealership with a used vehicle and walk out – or rather, drive out – with a brand-new automobile. But this convenience comes at a significant cost, since most buyers are likely to leave cash on the table by receiving less for their trade-in than what it is worth. The dealer is especially likely to offer a low price if the trade-in is from a car manufacturer that is different from the one the dealership represents.