(A note about the tower: This is where the deal actually takes place. By doing this, you have shown your commitment to the manager in the tower (tower: back room, usually behind glass, where the salesman goes to confer with his manager.) I never had anyone not sign the form who was actually willing to buy the car today. Then, the salesman will have the customer initial the part that says “I will buy today if numbers are agreeable to both parties.” If there’s any resistance (which normally there isn’t), the salesman simply says that its to make sure that the customer really is ready to drive the car off the lot today – IF they can get the numbers right. The salesman will only put down the make, model, VIN and customers information (not pictured). The salesman has had the trade evaluated, if there is one, and has gotten the customers something to drink to take the edge off.Īfter sitting everyone down, the salesperson starts filing out the four-square. When the interested party sits down, they’ve already driven the car, and have talked to the salesman about what they’re looking for. This sheet is used both in used and new car sales. The “worksheet” (or four-square, as it’s called) is the first thing a person will see when they sit down to negotiate a car’s price. They’ll cut most of the bullshit with you if they know that you’re not going to fall for it.ĥ) UNDERSTAND THAT YOU ARE NOT GOING TO PAY COST FOR THE CAR, AND THE AMOUNT YOU PAY OVER COST WILL BE MORE THAN YOU THINK. If you read this article, you are already ahead of 99.9% of the people walking in. Basically, wholesale cost.)Ĥ) LET THEM KNOW THAT YOU KNOW WHAT THEY ARE DOING.

It’s called “black book” value “black books” are published weekly by companies such as Manhiem Auto Auctions (), and these show the going price at the auction, that week, for your car. (Here’s a hint: take the NADA and subtract about $2K – used cars are appraised by books that aren’t published to the public, so it’s not blue book or NADA value. Know what the MSRP of the car is, know what your trade is worth. This seems obvious to most of the readers of The Consumerist, but most people miss this – especially if they’re getting dealer financing. You’ve got it worked out, and only need to know the price – bringing us to the next point.Ģ) DON’T HAGGLE OVER ANYTHING BUT THE PRICE. We’ll still try to beat whatever APR you’re getting at the bank and offer you payment deals, but forget them. Once a car salesman knows you don’t need financing, they’re more willing to be forward with you and knows they don’t have to work on the payments with you, because it won’t help. Here’s 5 tips to get you started, and then a very detailed breakdown of how the dealership manipulates buyers with the four-square.ġ) GET YOUR FINANCING THROUGH THE CREDIT UNION BEFORE YOU EVEN STEP ON THE LOT. Many, but not all, dealerships use this tool.

This is supposed to help you and the dealership come to an agreement, but as you’ll see, it’s really more akin to three-card monte dealer’s deck of cards. The VW Group also sells its ID-branded EVs through an agency model.Former used car salesman Alan Slone grows a conscience and reveals one of the major strategies dealership use to screw you when buying a new car.Īt the heart of it all is the “4-square,” a sheet of paper (sample above) divided into four boxes: your trade value, the purchase price, down payment, and monthly payment. Stellantis will follow suit in mid-2023 with its Alfa Romeo, DS, Lancia, Citroen, Fiat Professional, Opel/Vauxhall, and Peugeot brands. It’s not just BMW, Mercedes-Benz, and Audi that are moving towards a sales model of this kind. where many states prohibit car manufacturers from selling directly to consumers. Nota says the agency model will only be used in Europe and not in China or the U.S. It later abandoned this model but re-introduced it across its entire range in South Africa in 2020. Sales commissions through the agency model will be roughly halved.īMW had launched an agency model when the i sub-brand was first introduced.

While dealers would make less money for vehicles through this model, BMW says they will reduce costs by not having to maintain an inventory and by slashing promotional expenses.Īuto News notes that premium car manufacturers throughout Europe often offer dealer margins of 12 to 16 per cent. Dealerships would then be tasked with delivering new vehicles and receive a fixed fee per vehicle sold. Under the agency model, BMW would hold the inventory and invoice customers directly.

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