Five Common Bargains - Assignment Example

Five Common Bargains In today’s fast moving and highly developed world, automobiles have become an essential part of human life. I have to travel long distances from my home for work and also for social gatherings and thus have always longed for a car which would offer economic benefits such as mileage, cargo space and style at a comparatively lower price. As my mother also used to attend her office by bus daily I thought buying a car would be a great help to her as well. Being quite demanding regarding the style and spacious comfort along with the price, I also decided to discuss the matter with my friends who came up with various suggestions.

Hence, I decided to buy a second hand car which would give me the opportunity to avail stylish comfort at a lower price. In this regards, I had fixed my budget at $ 15,000 which was accumulated with my savings, financial borrowing from my parents and a short-term bank loan. For the next few days I and one of my friends searched the internet, newspapers, and dealers to see where I could get a car that satisfies my aforementioned needs. Once I finished searching the internet, I found a car that I was looking for.

It was from Hyundai with a quoted price of around $14,500 (Edmunds.com, 2012). After taking appointment with the dealer we went to see the car. Even though my accumulated budget was higher than the price charged I was quite concerned regarding the negotiation and testing of the quality of the product as it was an already used car. While negotiating over the price and the features of the car, I came to know that the actual selling price of the car that was quoted as $14,500 on the website, when include tax and insurance charges increased to around $ 17,000.

However, as per the advice of my companion I decided to give another thought to the matter and inspect the other available dealers on the same car model. My survey results indicated that a Hyundai model was available at an average of $20,000 to $ 25,000 which was not significantly different from the quoted price for the used car. By the end of the day, I went back to the dealer for the final discussion and asked him to give a 10%-20% discount as the present market value of the same new Hyundai model was about $20,500 (Kelley Blue Book Co.

, Inc, 2012). Going through the service records of the car gave me enough information regarding the engine along with the details of how much the owner drove the car. I also took a test drive so that I can check the performance of the car. After having a test drive, my friend and I decided that we should consult a mechanic and get him here for the examination of the car to obtain a professional review.The mechanic effortlessly identified that there were some problems regarding the engine which needed to be neutralized and would cost around $100.

We then went to meet the owner of the car to have a few words along with the dealer. We told him regarding the engine problem and asked him to give some discounts. He understood and agreed to give a discount from the offered price. After a long process of documentation we bought the car for $15,500 inclusive of all taxes and other charges. ReferenceEdmunds.com. (2012). New Hyundai Models. Retrieved from http://www.edmunds.com/hyundai/?ps=newKelley Blue Book Co., Inc. (2012). Car Values. Retrieved from http://www.kbb.com/car-values/