Are Car Dealers Tricking You with 4 Squares?

Are Car Dealers Using the 4-Square Method to Outfox You?

Buying a car can be an exciting experience, but it can also be stressful, especially when it comes to negotiating the price. Many car dealerships use various sales techniques to try and get the best deal for themselves, and one of those tactics is the "four-square method." This method can be confusing and even manipulative, leaving you feeling outfoxed and unsure if you got a fair deal. In this blog post, we'll explore what the four-square method is, how car dealers use it, how to avoid being tricked by it, and some Christian principles to keep in mind when buying a car. So, Are Car Dealers Tricking You with 4 Squares? Let's dive in to find out.

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What is the Four-Square Method?

The four-square method is a sales technique where the salesperson draws four squares on a piece of paper. Each square represents a different aspect of the car deal:

The salesperson will fill in these squares with numbers and then use them to negotiate with you. The goal is to get you to focus on the monthly payment, which is the smallest and seemingly most manageable number, while potentially manipulating the other numbers to their advantage¹.

How Car Dealers Use the Four-Square Method

Car dealers use the four-square method to try and confuse and pressure you into a deal that benefits them. Some dealers may use this method ethically, while others may use it to take advantage of their customers². Here are some tactics they might employ:

• Focusing on the monthly payment: They'll try to get you to agree to a monthly payment you can afford, even if it means extending the loan term and increasing the total cost of the car¹.
• Obscuring the total cost: They may not clearly disclose the total cost of the car, including interest and fees, and instead focus on the monthly payment¹.
• Manipulating the numbers: They may adjust the numbers in the squares to make it seem like you're getting a good deal, even if they're increasing the price or lowering your trade-in value in another square. They might even use tactics like folding the paper to hide certain numbers while you're focused on others³.
• Creating a sense of urgency: They may pressure you to make a decision quickly by claiming the deal is only available for a limited time or that there are other interested buyers⁴.
• Preying on your lack of knowledge: This tactic works by overwhelming you with numbers and relying on your hesitation to admit you don't fully understand the process. This can lead you to make decisions that are not in your best interest³.

How to Avoid Being Outfoxed

Here are some tips to help you avoid being tricked by the four-square method or other potentially manipulative sales tactics:

• Do your research: Before you go to the dealership, research the car you're interested in, including its fair market value and typical financing terms. Use resources like Kelley Blue Book and AutoTrader to get an idea of what to expect¹.
• Get pre-approved for a loan: This will give you an idea of what interest rates you qualify for and help you avoid being pressured into a higher rate at the dealership¹.
• Focus on the total cost: Don't just focus on the monthly payment. Calculate the total cost of the car, including interest and fees, to make sure you're getting a fair deal⁵.
• Negotiate each item separately: Don't let the salesperson bundle the price, trade-in, and financing together. Negotiate each item separately to ensure you get the best deal on each⁶.
• Separate the trade-in: If you have a car to trade in, handle that transaction separately from the new car purchase. This prevents the dealer from using your trade-in value to obscure the actual cost of the new car⁷.
• Focus on the "out-the-door" (OTD) price: The OTD price includes all costs associated with the purchase, such as taxes, fees, and add-ons. Focus on negotiating this final price to avoid any surprises⁴.
• Be willing to walk away: If you're not comfortable with the deal, don't be afraid to walk away. There are plenty of other dealerships out there⁸.

Avoiding Car Dealership Scams

In addition to the four-square method, there are other tactics that some car dealerships may use to try and take advantage of buyers. Here are a few common scams to watch out for:

• Bait and Switch: This involves advertising a car at a very low price to get you to the dealership, then claiming it's unavailable and trying to sell you a more expensive option⁹.
• Packing the Contract: Dealers may try to sneak in extra charges for things like service contracts, warranties, or add-ons that you didn't agree to⁹.
• Yo-Yo Financing: This scam involves letting you take the car home before the financing is finalized, then calling you back later to say the financing fell through and demanding a higher interest rate or more money down⁵.
• Credit Score Deception: Some dealers may try to convince you that your credit score is worse than it is to justify a higher interest rate¹⁰.

To avoid these scams, it's important to be informed and vigilant. Do your research, read the contract carefully, and don't be afraid to ask questions or walk away if something seems off¹¹.

Christian Principles for Car Buying

As Christians, we should approach car buying with wisdom, integrity, and a focus on stewardship. Here are some biblical principles to keep in mind:

• Pray for guidance: Seek God's wisdom in making the right decision¹².
• Be content with what you need: Don't be swayed by the desire for a flashy or expensive car. Focus on what you need and can afford¹³.
• Avoid debt: If possible, try to pay for the car in cash or with a short-term loan to avoid being burdened by debt. Proverbs 22:7 cautions, "The rich rule over the poor, and the borrower is slave to the lender." ¹³
• Be honest and fair: Don't try to deceive the salesperson or take advantage of them. Treat them with respect and integrity¹².
• Be a good steward of your resources: Use your money wisely and avoid making impulsive decisions¹².

Conclusion

Buying a car can be a challenging experience, but by being informed and aware of sales tactics like the four-square method, you can avoid being outfoxed and make a wise decision. Remember to approach the process with prayer, contentment, and a focus on biblical principles, such as avoiding unnecessary debt and being a good steward of your resources. By applying these principles, you can navigate the car buying process with wisdom and integrity, ensuring you make a choice that honors God and is in your best interest, even when faced with potentially manipulative sales techniques.

Works cited

1. 'The 4-square method': Here's how American car dealers make big profits off you — and how not to get fooled when buying your vehicle | Moneywise, accessed March 11, 2025, https://moneywise.com/loans/auto-loans/the-4-square-method-heres-how-american-car-dealers-make-big-profits-off-you-and-how-not-to-get-fooled-when-buying-your-vehicle
2. The “Four Square” Technique Gives the Retail Car Industry a Bad Name, accessed March 11, 2025, https://www.centerforperformanceimprovement.com/teds-playbook/2019/3/2/the-four-square-technique-gives-the-retail-car-industry-a-bad-name
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