SELLER, an independent trucker, must sell his immaculate refrigerated truck and trailer rig. Seller lost his license three months ago for illegal hauling and is now desperate. Seller is asking $56,000.
If he doesn’t sell to the Buyer today, the bank will repossess the rig tomorrow for 3 months non-payment against its $40,000 equipment loan to Seller.
If rig goes to auction, Seller will probably recover nothing even though he paid $85,000 for the new rig three years ago.
If Seller sells for more than $40,000 cash, he keeps the whole difference.
Seller has tried hard to sell. In 3 months, he has gotten several offers in the $42,000 to $45,000 range but all wanted credit from him. One person offered the $56,000 asking price but, after wasting a month, Seller discovered that he had no funds.
Seller reads the classified ads and knows that three used truck and trailer rigs are available at $41,000, $44,000, and $45,000. All ads read “in excellent condition.”
Buyer has a good reputation in the trucking business and likely has the cash.
Seller is desperate. He owns nothing but the equity in his beautifully kept, low mileage rig. If he gets nothing out of his equity, his family will be furious, and his life will get a lot harder.
Seller must sell in 15 minutes or face the likely loss of equity when the bank forecloses tomorrow.
Before you start negotiating with the buyer, remember to write down the least you will take under pressure.
Information Available To Both Parties
Buyer has test driven Seller’s rig which has 35,000 miles on it and is in mint condition.
New heavy-duty custom truck and trailer rigs are $75,000.
Used rigs seem to sell fast if priced right. Prices on three-year-old equipment vary from $20,000 to $55,000 depending on condition and mileage.
Seller wants $56,000 for his “pride of ownership” rig.
The general economy is sluggish and trucking slow.
Seller says that he wants to cash out and retire to Florida.
Buyer says he has cash if the price is right.
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