Used Car Purchase (Small Transaction) Negotiation

Darren Brooks, Ph.D.
Herbert Wertheim College of Business

Students simulate a used-car purchase to practice transactional bargaining, using AI for pre-planning assistance, simulating negotiation with a seller, and performance evaluation.

Introducing this Spark

One of the challenges with teaching negotiation is the lack of opportunities for hands-on practice accompanied by immediate, individual feedback. This AI-based simulation provides a guided environment where students can test bargaining strategies, receive structured evaluations, and repeat the exercise across multiple iterations to refine their tactical approach.

Learning Outcome

Given simulated AI negotiation practice, students will develop and apply transactional negotiation skills in a simulated used car purchase, building measurable proficiency in preparation, needs identification, concession strategy, and deal closing.

Featured AI Tools

Gemini Gem

Featured Skills

Implementation Guide for Instructors

The information below is provided to help instructors implement this AI Spark learning activity in other courses. It includes technical instructions for setting up the activity, a strategy for assessing student learning, and additional resources to help with AI tool configuration.

Overview

This AI Spark uses a multi-phase Google Gem that transitions between three distinct roles: a pre-negotiation planning coach, an in-character counterpart (used car seller), and an evaluative debrief assistant. The activity provides students with a low-stakes environment to practice preparation, opening anchors, conditional concessions, and package framing against objective market benchmarks before receiving rubric-aligned feedback.

Technical Instructions

Gem Configuration: Create a new Google Gem using the shared prompt and source documents listed in the Resources tab. The Gem requires a comprehensive source knowledge document that outlines the structural stages, pricing boundaries (Kelley Blue Book data), and the 100-point rubric. 

Adapting Scenarios: The underlying structure can be adapted to other assets (e.g., real estate or commercial contracts) by updating the valuation benchmarks in the knowledge base or flipped to a buyer role-play with minor role adjustments in the instructions. 

Canvas Assignment Setup: Create an assignment requiring students to submit their preparation worksheet, full negotiation transcript/log, and an analytical reflection essay connecting their simulation choices to course concepts.

Assessment Strategy

Student learning is assessed through three deliverables: (1) a completed negotiation preparation worksheet, (2) the simulation interaction log detailing decision stages and offers, and (3) a one-page reflective essay on lessons learned and real-world application. Performance is also formatively evaluated against the simulation’s embedded 100-point rubric measuring Preparation & Strategy (55 points), Execution (30 points), and Outcome Discipline (15 points).

Resources

Shared Gem Link: Used Car Purchase (Small Transaction) Negotiation

Key Behavioral Constraints: The Gem is strictly bound to realistic Kelley Blue Book market data. It cannot fabricate vehicle values or accept offers above standard economic ceilings, ensuring students must build fact-based cases rather than relying on arbitrary bargaining.

Instructions for Students

In addition to helping students understand the purpose of this AI-based learning activity, the information below provides step-by-step instructions for completing the assignment and includes a micro training on how to use the featured AI tool(s).

Overview

In this experiential exercise, you will practice transactional bargaining by negotiating the purchase of a 2016 Honda Civic LX Sedan. Powered by a custom Google Gem, the AI acts dynamically across three phases: first as a strategy coach to check your preparation, next as a realistic seller during live negotiation rounds, and finally as an evaluator providing a detailed performance debrief.

Assignment Instructions

Phase 0 & 1 - Setup & Strategy: Open the Gem, type "Start the Negotiation", and click the blue arrow to submit. Complete your preparation plan using Kelley Blue Book (KBB) data, defining your Opening Floor, Target, Walk-Away Ceiling, BATNA, and a four-step concession schedule. Submit your plan to pass the Gem's initial preparation gate. 

Phase 2 - Live Role-Play: Once approved, engage in at least five rounds of live bargaining with the seller persona. Use diagnostic questioning, anchor offers in KBB data, and ensure all concessions are conditional. Be sure not to enter real financial accounts or live VIN numbers into the chat.

Phase 3 - Closing or Walk-Away: Confirm final agreed terms (price, fees, warranty/terms) or execute a disciplined walk-away if the deal exceeds your ceiling. 

Phase 4 - Debrief: Type "End the Negotiation" to trigger the 100-point rubric assessment and review your performance breakdown. 

Submission: Upload (1) your completed Preparation Worksheet, (2) the full Negotiation Chat Log, and (3) a one-page reflection paper to Canvas.

How to Use This Tool

What is a Gem? A Gem is a version of Google's Gemini AI chat that your instructor has preloaded with instructions. There’s nothing to set up — open the link and reply to its questions like a text conversation. Read more about Google Gems. 

  • Sign in. Open the Gem link and sign in with your Google account. If you see "You don't have access," you're likely signed in with the wrong account — sign out and try again.  
  • Send a message. Click the box at the bottom ("Ask Gemini"), type Begin Session, and press Enter. Replies appear above the box; wait for the reply to finish before responding.  
  • Reply in the same chat. The Gem remembers the whole conversation. Don't click "New chat", which will start the session over. 
  • Lost the page? Go to gemini.google.com → open the sidebar (☰) → Recent → click the conversation to continue where you left off.
  • Copy the output. Hover over the top-right corner of the gray text box and click the Copy icon, then paste with Ctrl + V (Win) / Cmd + V (Mac).  
  • Good to know. Type text, rather than use voice (Gems don't work with Gemini Live). Don't enter passwords or sensitive personal information. Keep in mind that the Gem may ask you to expand a short answer.  

Access via FSU. Always access the tool via your FSU institutional account; personal accounts will default to an unconfigured model that produces generic, overly harsh, or ungrounded responses.