How to Buy a Car, Using Game Theory

BigEejit

I did a search for the link and the guys name, but didn't find it, sorry if this has been posted already (looks like the kind of thing that should be here)

http://bigthink.com/ideas/41819

The guys speaking is Bruce Bueno de Mesquita, Professor of Politics, New York University.

Anyone know about that Irish Times reporter? was it in the paper?

pa990

interesting technique

but i presume that only applies to brand new cars, a second hand car would have to be viewed

SeanPuddin

Father used this technique to buy a 08 Mondeo on donedeal, got an absolute bargain. We read it in a game theory book.

Zubeneschamali

We've had more than one car salesman here say that they simply won't do business this way. They will not give out their best price over the phone, full stop.

él statutorio

Zubeneschamali wrote: »

We've had more than one car salesman here say that they simply won't do business this way. They will not give out their best price over the phone, full stop.

Their loss in that case. Some won't give out a price and others will, the ones that give a price get the sale.

MidlandsM

I'm a car dealer, and find when people ring me up and immediately get into "the best/last price", or "cash today" stuff, I rarely get a sale as they wind up to be muppets.

Zubeneschamali

él statutorio wrote: »

the ones that give a price get the sale.

If no pro will give you their best price over the phone, you end up paying over the odds if you shop this way. The Game Theory method only works if the game isn't fixed.

Monty Burnz

MidlandsM wrote: »

I'm a car dealer, and find when people ring me up and immediately get into "the best/last price", or "cash today" stuff, I rarely get a sale as they wind up to be muppets.

...or they are sensible buyers and your price winds up being too high...

Anan1

AFAIK cash discounts are pretty much fixed in this country, so the salesperson only has real discretion when there's a trade-in against a new car with a good profit margin.

RoverZT

Fine for buying a new car which I presume he is talking about.


For a car older than 5 years and readily available, no dealers can match private sales like donedeal etc.

Had to laugh at his criteria.

Decide exactly what car you want to buy, make, color if it matters to you, options and so forth.

What about mileage, condition, service history, how its driving etc.

Far more important than colour lol:)

Cheapest used price, can in often cases be a mellon.

Price would not be the important thing to me when buying a car, all the above are far more important.

I would happily pay extra for a better car/ a bit of quality.


Maybe Americans could start preaching that.

MidlandsM

Monty Burnz wrote: »

...or they are sensible buyers and your price winds up being too high...

well, yer talking bollox monty.
you missed the immediately part of my statement.......they don't discuss milage, history,condition,nct, tax,spec, anything but the price, let alone come and see the car in the flesh.........

Sleepy

This relies on

(a) being a new car purchase - once it's secondhand you've got *way* too many variables.
(b) there being multiple dealers selling exactly the same car within reasonable travel distance
(c) those dealers having a reasonable amount of freedom on pricing
(d) those dealers not being able to pick up the phone to each other and agree not to play along.

Can't see it working at all in Ireland, we're simply too small a market and, as we can all agree, there's no such thing as two identical second-hand cars.

drunkmonkey

Idiot on the internet talking nonsense. Don't buy a car without seeing it. Interent shoppers annoy the bejazus out of me.
Yea sure i'll beat eveyone's price. (but i'll ride you bare back if you've a problem).

Anan1

drunkmonkey wrote: »

Idiot on the internet talking nonsense. Don't buy a car without seeing it. Interent shoppers annoy the bejazus out of me.

They 'annoy' a lot of bricks & mortar outfits, but you're there to serve the customer rather than vice versa.

drunkmonkey wrote: »

Yea sure i'll beat eveyone's price. (but i'll ride you bare back if you've a problem).

How would you do that with a new car warranty?

fasttalkerchat

I've done something similar with hotels.