Beating the Four Square
- Author Dennis James
- Published March 6, 2007
- Word count 564
To ensure you get the best deal when you buy your new car, you should understand how the car dealer will "work the deal" on a four-square worksheet as you are negotiating. The four square worksheet covers everything from your payments to your trade-in price and is used to help close you down and make the dealership the most money. The salesperson gets daily training in getting the most money out of you using the four square worksheet so there is no way this one article can give you every scenario, so the focus is kept on the two most common elements, your trade and your payments.
But first what is the Four Square?
As the name indicates, it is a worksheet that is divided into four squares:
Square 1. Vehicle Price: This is the price of the car. Often a dealer will write the price of the car, list any discounts or rebates, then write "plus Tax and Tag” or just “+++ (plus, plus, plus)," indicating that, on top of the cost of the car, you will pay sales tax, title and licensing/dealer fees.
Square 2. Your Trade-in: How much the dealership will give you for your trade? This figure is credited toward your purchase of a new vehicle. In some states you may also receive a tax credit based on what your car’s worth. The tax credit allows you to only pay taxes on the difference between what your trades worth and the price of the car.
Square 3. Down payment: How much out of pocket money are you are willing to come up with? Down payments made using a credit card and check are also considered "cash up front." Dealers will usually try to get something even as little as the first payment but putting zero down is fairly common.
Square 4. Monthly payments: What your monthly payments will be based on the three other squares. The Salesperson will try to get you the buyer to focus on this figure since it is what most buyer’s car about and can be changed the easiest without as much of an effect on the dealers profit or the salesperson’s paycheck.
Tricks of the Four Square.
If you notice, these four separate pieces or squares are interlaced. If a customer is concerned about receiving a certain amount for their trade, the dealer will raise the amount of the trade-in without discounting the actual price of the car. This is called “Over Allowing” and is very common.
Another little trick of the four square is getting the customer to focus on the monthly payment. The first pencil or numbers usually come out with an inflated interest rate and when the customer wants the monthly payment lowered the salesperson just has the sales manager lower the interest rate to a more reasonable point there by lowering the customer’s payment without changing the price of the car.
Let the Four-Square Work for you.
Try to keep the deal as simple as possible. You may want to consider selling your old car out right rather than trading it or get an outside auto loan through your local bank or Credit Union before you go to the dealership so your interest rate can’t be inflated. Taking these steps in advance will allow you to negotiate on the price of the car rather than playing the monthly payment game.
Dennis runs Car Dealer Check which has reviews on North Carolina Car Dealers including Durham Car Dealers.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- How to Secure Guaranteed Car Finance with Ease
- Comprehensive Guide to Buying Used Cars in Bournemouth: Essential Tips for Buyers
- Behind the Wheel: What to Look for in a Professional Limo Service in New Jersey
- The 455 Cubic Inch Pontiac V8: A Legendary Powerhouse
- IR Coated Solar Infrared Auto Glass & Windshields
- The Secret to Finding the Perfect Ride for Your Personality
- What makes the Volvo V40 a good car to buy
- The Risks and Benefits of Using a License Plate Lookup Service in California
- Vehicle Certificate of Conformity: Ensuring Safety and Compliance
- 10 Normal Cars That Will Turn Anyone Into an Enthusiast
- How to Remove Rust on my Car?
- An Ultimate Guide to Used Car Warranty
- Driving Up Longevity: 12 Top Tips To Extend Your Car's Lifespan
- The Art of Paint Correction: Restoring Brilliance to Your Car's Finish
- What is Car Detailing?
- Car Care and Detailing: A Comprehensive Guide to Keeping Your Ride in Pristine Condition
- Can I Put Synthetic Oil in Any Car?
- Ford Mustang Mach E Lowers Pricing and Open For Orders
- How To Make Sure You Buy The Best Used Car For Your Needs
- Why People Love Classic Cars
- Robot taking over car painting?
- Roadworthy inspection failures to look out for
- Harman Kardon and Renault continue their partnership with the all-new Austral
- Things Every Future Owner Must Know Before Purchasing A Subaru WRX
- Finding a Car Rental Milwaukee Under 25
- Top 5 Ways to Make Money When Selling Your Car and Get Cash for Cars
- Top 5 Digital Mobile App Strategies for Car Dealerships
- What's Coming in 2022: The New Electric Cars Poised to Hit the streets
- The Beginner’s Guide To Electric Vehicles
- How to Ship a Car from USA to UAE (United Arab Emirates)