Dealerships Rip You Off With The "Four-Square," Here's How To Beat It

[cfoote]

I've bought 3 Yukon Denali's and traded in 2 over the past few years. I always have my financing. The only thing that I talk to the dealer about is out of the door pricing. I already have my number and stick to it no matter what even if they try to negotiate. They already know who they are dealing with.

 

[WillCO]

I just bought my tahoe Sat and while I wish I had had the time to get financing first because I did go with theirs and it's 9%, the truck is 10 yrs old so I know I am not going to get a 3% loan and I could go to my bank and refinance it if I really wanted to. But also I plan on paying it off faster instead of the 48 months so I will save money there as well.

But I still wonder if I could have gotten a better price. I knew I would get the shaft on the trade (02 trailblazer with 190K and a dented rear door form a deer running into it) and my buddy who works at a dealership offered him 1500 for his 06 MINT trailblazer with 160K so I was prepared to not trade.

I put the trailblazer on the lemon lot on base with an asking price of 1800 (has a crap ton of new parts and mechanically is a good little truck) if I even 1K I would be happy. but the dealer was going to offer @ 500.

I brought 4500 cash with me and ending up paying 11,600. So I financed the 7100 plus title etc etc.

I did research values ahead of time and it looks like fair dealer price for good to better for this truck is 15K and change. It has 120K on it and it really is almost mint condition. the interior is immaculate garage kept etc.

I still do wonder if they laughed after I drove away but I am happy with the overall deal.

The dealer's finance company can sell a 9% loan and make enough money on that to make the whole deal work, even if they made no money anywhere else, which I imagine they did.

 

[WillCO]

I sold a truck for 10k, a truck for 32k, and a truck for 31k. The first two were cash transactions. The second the guy brought me 10k in cash and then wired the remaining amount to my checking account. He had to wait until funds cleared, and then he was able to pick up the truck. I never take checks, not even cashiers.

Meeting sketchy people from Craigslist doesn't worry me, but I also have a pistol on me.

Sometimes, things are just not worth the hassle.

+1. I don't have the time for Craigslist adventures. I usually sell cars with more than 100K on them and 8-10 years old, so I am content to use Carmax. It's easy, only takes part of one afternoon, and considering the value of the car to begin with I'm probably only leaving a few hundred bucks on the table doing it that way.

I can totally see how some people enjoy the art of private-party car sales, though. No judgment.

 

[iamdub]

I didn't know the 4-square bit was still in play. Last I ever saw of it was over a decade ago. My GF and I were shopping for a her a car and as soon as the salesman flipped over a printed form so he could draw the 4-square lines on the back, I nudged my GF and said "Now, here he goes with the 4-square thing...". The salesman stopped dead in his tracks and we exchanged poker faces for about 5 seconds while he flipped the paper back over and we continued where we left off. The thing is, I really didn't even fully understand what it all was about. I just knew that I didn't like all those different numbers being thrown around so quickly and fancily and I wanted to deal with just one number- the selling price. I guess, to that salesman, my comment made me sound like I was one of "those customers" that knew the game and there was no sense in wasting his time. I got such a good deal on that car that an ex-girlfriend from years prior contacted me outta the blue about it. It turned out she handled the finances at the dealership's main branch and the low selling price for such a rare/uniquely-equipped car caught her attention, then she saw my name on the paperwork.

 

[Danny3737]

+1. I don't have the time for Craigslist adventures. I usually sell cars with more than 100K on them and 8-10 years old, so I am content to use Carmax. It's easy, only takes part of one afternoon, and considering the value of the car to begin with I'm probably only leaving a few hundred bucks on the table doing it that way.

I can totally see how some people enjoy the art of private-party car sales, though. No judgment.

The Carmax's by me are always $2K to $4K higher that what I can get elsewhere. They usually have a fair selection, but I don't mind waiting to save a few grand. The last 3 vehicles I purchased have been through individual sellers and probably saved $7K to $10K in total. I really prefer buying private party because I get to see what the vehicle looks like and not what a dealership tries to hide. I really hate when dealerships spray the engines with tire dressing trying to make it look pretty.

 

[WillCO]

^ I'm not sure I'd buy at Carmax, because it's clear that as a seller it's where you go if you want to get rid of a car without having to answer too many questions about it. I take excellent care of my cars, but I doubt the majority of the cars on their lot have seen the same standard.

 

[USCG]

I intend to pay cash for the car, unless it's a great loan deal with 1% interest. Dealers make extra money off their in-house financing. What's the downside to using their financing and then pay off the entire loan after a month or 2? Assuming there is a no pre-payment penalty on the loan.

 

[Philpug]

I sold cars for 20 years. I would not work for a dealer that used the four-square.

 

[jared999]

Looks like this was necroed, but I'll add my .02.
The OP has solid advice, but the problem is that the current auto market makes things difficult. Most dealers won't budge on their MSRP and most are asking well above MSRP.
So if you must buy a new car right now, follow the OP and get your financing settled before going to get the best rate.