The Four
Square Negotiation
The Four Square is a term used by dealers
to describe the worksheet used by sales people during the new
and used car negotiation process. It is usually a standard 8.5
x 11 card that will have 4 large squares that cover the face.
Each square is used to write and negotiate a specific aspect of
the car deal.
Usually:
Top Left: Price of the car you are planning to purchase.
Top Right: Your Used Car Trade-in.
Bottom Left: The amount of your down payment.
Bottom Right: Your monthly car payment.
The layout of the form is not the issue,
it is the skill of the Sales Person going through the 4
Square.
The first thing I say is "Let me go
through the whole worksheet and then if you have any questions,
I will be happy to address them" Then I will write in the
square the MSRP of the car you have chosen. I will say "The car
that you have chosen usually sells for (the amount I
wrote).
Then I write down a Trade-in amount for
your car and say that is number based on a similar car I traded
in a couple weeks ago.
Then I move to the next square and write
down a third of the new car price and say that normally you
would put down a third.
Then I move to the next square and write
down an estimated payment (usually twice what it should
be).
I am trying to keep you focused on
the payment box. I will refer back to the down payment box to
confirm you can put down that amount. If not I will work you
for a down payment that you can put down. Then back to the
payment.
Four Square Negotiation - Ticket to Profit
If you come back and say that is too much
for the car, I want a discount. I will say OK, but you
said you wanted to lower the down payment so that will drive
the payment up. You said you wanted to keed the payment low. So
I ask you, isn't more important that the payment is something
you can afford every month, or do you want to go back and forth
with numbers or should we pay attention to the part
you said was important....The Payment.
When I can keep you focused on the
payment, I Win, and you loose.(cha-ching)
Joe Slick
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