Car Buying Tips » Sales Tactics

Automobile Buying – The 4 Square Close

Jeff — Sat, 06 Jun 2009 23:54:15 +0000

As I mentioned in first part on automobile buying – dealing with a car salesman, the 4-square worksheet is designed to maximize the profit for the car dealer.

The process will generally begin with you being asked how much you are planning on for a monthly payment. Or, what type of monthly payment range are you looking to achieve.

The operative sales set up word here is ‘range’. Of course, if you have spent some time on this website then you already know what your monthly payment will be based upon, what you intend to finance, and for how long.

You also know that your budget and the monthly payment you can afford are on a need to know basis and the car salesman doesn’t need to know.

But anyway, let’s get back to the 4-square and the monthly payment box. If the salesperson is truly following the sales model, after they ask you what you want your monthly payment to be, and you say “$300″, they might just respond with “up to…?”

Now this is very significant because right out of the gate what they are trying to bump your monthly payment expectations (increase gross profit and commission). And if you say (just like a big ol’ fish) “oh, up to about $350″ just watch the car salesman write $350 in that square!

Remember it’s all about maximizing that profit. You should see what they do when they say “that’s great… $300… up to?”… and you respond with “oh about $250.” And do so with a very serious straight face. In other words… stop trying to bump me up the ladder.

And don’t be surprised if this “up to” approach is also used when the salesperson begins talking to you about how much money down you plan to put on your new car purchase.

At this point you may be thinking ‘how can this possibly work?’ Believe me it does. This 4-square approach has withstood the test of time. So, if it wasn’t working and working well, car dealers that do use it wouldn’t be using it.

O.K. The final box (or at least as presented here) on the worksheet is reserved for your trade-in allowance. The area of the trade-in is where the most profit can be made.

Buyers can sometimes be so fed up with their old car that they can’t wait to say good bye to it and they don’t do the research on the value of their trade-in. Believe me, the used car manager is well aware of it.

Next 4 square and desking the deal…

Automobile Buying – Dealing with the Car Salesman

Jeff — Sat, 06 Jun 2009 23:48:56 +0000

As you continue your quest to obtain your best new car deal, there is no doubt that you will come in contact with all types of automotive sales people, personalities and tactics.

It is the latter, and one tactic specifically I would like to address in these articles for you.

In the car business, many car dealerships and subsequent car sales people use what is known as a work sheet when they are dealing with a potential automobile buying prospect (you).

Of course, any type of sales is predicated upon using a tried and true system, presentation, or process that works. Everything sales has one. In the car business their is a sales process that may car sales people on trained on known as the the 4-square worksheet, 4-corner close or some other connotation thereof.

The 4-square worksheet or the 4-corner close is drilled into the automobile salesperson that this tool is their ally. This tool will maximize their profit and as such maximize their commission. And you should be aware of this when you sit down to negotiate the car deal.

As the name implies, the worksheet is divided into 4 sections.

So, when the salesperson gets you to sit down in their cube (known in the business as having the customer in the box… isn’t that comforting), don’t be surprised to see the arrival of this sales tool.
compare car pricing

First of all, I should point out that at some car dealerships, the salesperson is absolutely required to work the deal following this worksheet to a tee. And believe me, many dealerships put the fear of the salesman’s job into the salesperson’s mind if they don’t.

Many sales managers won’t even entertain the offer and run the sales person out of their office and back to the customer to get the proper information if they haven’t followed the 4-square car deal worksheet.

With the 4-square work sheet the customer information is at the top along with the basic information on the car you have selected. Then (usually in the upper right square) the sticker price of the car is written in a authoritative fashion. The other boxes on the worksheet are for the price offered for the trade-in, the amount of your down payment, and your monthly payment.

Coming up next we’ll take a look at the process behind the 4-square worksheet and how you should deal with this during the automobile buying process.

Next more on 4 square hell...

Dealing with the Car Salesman Speil

Jeff — Sat, 06 Jun 2009 22:52:24 +0000

When it comes to dealing with a car salesman, you have to understand that salespeople in general are schooled on overcoming objections and getting positive responses to their questions.

This isn’t just in the case of the car salesman. It’s true of all sales.

This isn’t a derogatory observation. It is what any salesperson must do to be successful.

The salesperson must be able to think and converse on their feet. Successful selling takes positive energy between the customer and the sales person. It not a good sales tactic to let the conversation stall or begin talking about negatives.

Again, the purpose of a salesperson and how they ultimately make their living is to sell you something; to continually move you mentally toward making a purchase.

So, while you’re out car shopping don’t be surprised if you a few lines:

“I can only hold this price for you today.”

A legitimate price should be good today tomorrow or next week.

However, be fair. If this statement comes after a good bit of honest hard negotiating on yours and the dealer’s part, I feel that this is only fair.

Don’t take everyone’s time and effort in working to put a deal together for you, and then expect them to leave it on the table while you may or may not come back next week.

“How much were you thinking about spending for the car?”

Pass.

No need for the sales person to know this. It’s only fair then… ask the salesman what the net/net dealer cost is on this car.

Besides, you have done all your research… you know all the numbers involved.

“You wouldn’t let $10 a month keep you from your car would you?”

Always one of my favorites.

Pose the same question back to the salesperson (you wouldn’t let $10 a month stop this deal would you).

It’s your money and their commission they won’t be getting.

After all $10 a month on 60 month financing is easy to figure out… $600 PLUS the interest charged on this $600.

“If you’re comfortable with the payment range, then the interest rate must be O.K. too…”

“I’m not really interested in ‘payment ranges’ and I do want to know the precise interest rate you’re quoting on this deal.”

“What would you consider a fair profit?”

“Whatever the profit turns out to be on the offer I just gave you.”

“Shop around, and come back and I’ll beat any offer.”

Of course they will. Who wouldn’t once they know the number to beat.

But insist on a firm offer from them.

A copy of the buyers order will do (It’ll drive most sales manager nuts if you leave with a copy of the buyers order) .

“The pricing information you have isn’t correct.”

O.K… let me see yours… you know the one that even has the holdback numbers on it.”

“You said you want your payments to be $300… up to…..?”

This is classic car sales verbiage … and it’s crap.

By now you should be saying “wait a minute. I don’t negotiate based on a monthly payment. And the monthly payment I’m comfortable with is for me to know not the dealer.

Also, this begins the process of teeing up the deal for the finance department.

You know better than to go down this path. But if you find yourself somehow up against this question say… “Up to about $250!” and see how they react.

“You’re planning on putting how much down?”

Again, for you to know only.

Work the deal based on the selling price.

Don’t offer any type of down payment up at this point. You can certainly decide upon that later.

If you trip up and mention how much you plan on putting down… be ready for the “and up to” comeback as mentioned just before this.

Don’t let the salesperson ‘oh by the way’ extra cost you on the vehicle. Sometimes letting you know that this car already has had fabric treatment applied, paint sealant, some sort of undercoating, pin stripes, glass etching, etc. All of these add no value and are big profit items for the dealer. And they don’t need to be part of the selling price of the car.

Don’t let the sales person bump you up in your price a few dollars here and there. Stay firm and focused. Be very wary of something that is ‘only going to add a dollar or two, to your monthly payments.

Through it all ask many questions if you feel confused. Get up and take a break and walk around if need be. Remain confident in your research and ability to negotiate.

Even though the negotiating process may take a while, if you felt as though the salespeople have dealt with you in a straightforward manner and worked hard to put the deal together, then by all means get the car you’re after.

The dealer will make some profit any business will and should. Profit is a function of staying in business and making a living for you and your employees. Any business has to.

No dealer is going to sell you a car for $20,000 if it cost them $21,500, and you shouldn’t expect them to. If you have had a tough but good experience then buy the car… it’s a win/win and you can develop a good relationship with the dealership.

The last couple of cars that my wife and I bought were a tale of two trips to the dealership. The first time in we were looking at a new car. And it was the first time my wife had the pleasure (tongue firmly in cheek) of being with me on a car buying day.

A really long story (and day) short.

When we left that day after signing all the paperwork, my wife said to me…. my goodness, I would have paid way tooooo much for this car. I said, “Believe me… I know.”

I think our salesman that day was as tired as my wife… but it was a good day. I kidded the salesman and said my car is getting a bit long in the tooth, so I’ll be back in a few months to buy a used car from you. He laughed and said “thanks for the warning!”

Fast forward a few months…. I’m back. I look Joe up and we go straight to his office where I told him the used vehicle that I was looking at, the price I would pay for it, and what I wanted for my trade.

Joe looks at me with a grin and says, “should I even have my used car manager drive the trade”…. “can if you want, Joe… it won’t change my offer.”…. He didn’t… they knew me.. we did the deal… out of the dealership in about an hour with the numbers I went in with.

Did the dealership lose money… no. I didn’t expect them to.

Did they make big money… no.

Did both parties win… yes.

I bought car number two from them, and they and Joe made some money and moved some inventory; which is a very good thing.

I stopped by the dealership not too long ago to hi to Joe and pull his chain a bit…. Joe had retired….

hmmmm maybe I should re-think that last deal I got!!!

Some car sales tactics next…

Car Buyer Help – Dealer Advantages

Jeff — Sat, 06 Jun 2009 22:31:49 +0000

Knowing the advantages the dealership has over you and the advantages you have over the car dealership can provide the much needed car buyer help for you.

In fact, it can help keep your head on your shoulders and your money in your pocket throughout the steps in buying a car.

Also by understanding the perspective of the salesperson and the dealership, you will know what to expect, and how to answer the various leading questions they will toss out at you throughout the car buying process.

This will give you much more confidence in the negotiation stages of the car deal.

So, let’s take a look at both sides of the fence.

First, let’s look at the advantages the car dealer has over the potential buyer.

The vehicle sales person will more than likely be the first contact you make.
Keep in mind automobile sales people know their business. They know the market. They know the product line, and all the options. And they are trained to sell.
They are in ‘sales mode’ everyday.
Selling vehicles is what they do for a living. They are trained to understand your needs. They are trained in getting reluctant car buyers to the sales office. They are experts in making transactions happen.
The sales people relatively speaking have little to lose in comparison to you the buyer who is contemplating a large ticket purchase.
Many of you, unfortunately are unprepared while the sales person is trained to handle and overcome any objections you may have in route to the sale.
Sales people are on their home turf.
This is a road game for the car buyer. The sales people are comfortable with their surroundings at the automobile dealership. While you probably won’t be.
People on their own turf generally exhibit more confidence and act a bit more aggressively as such.
Sales people have other trained professionals to come off the bench and help them close the deal.
Yes, there are even other people at the car dealership more than willing to take a crack at you. This is known as a ‘T.O.’ (turn-over). The sales persons turns the potential car buyer (you) over to generally a manager sort.
This generally happens when the sales person feels a new face or angle could help close the deal, or when you are about to walk. And you can bet that these people will not only be fresher, but even stronger with their techniques.
Managers generally want the opportunity to talk with you before you exit just to make sure there isn’t an uncovered objection that you have that may have gone unaddressed. It’s good sales practice.
The sales people can claim limited authority.
This is a standard tactic. The sales person is ‘on your side’ and when the questions from you get too tough nothing will get approved until a sales manager does so.
So, if you feel they are backpedaling from previous statements it may because the manager has vetoed their action.
The system has been set up and is tried and true to give the salesperson the best possible advantage in order to sell the car.
That’s right the automobile industry has refined a system and approach through the years to work effectively when it comes to separating you from your money. A tried and true system indeed….. it has been used by dealerships for decades.
The dealer may have the exact car you are looking for, so you may be tempted to just jump right in.
Like many people you may have waited to trade the old car in until you just can’t stand to ride in it anymore! This makes it difficult for you to walk away from the deal even when you know you should.
If this is the situation you have put yourself in, you for sure have weakened your resolve and bargaining power.

Ok….. so it’s an impressive list of advantages…. so what are you to do????

Drop to the floor and assume the fetal position?

Well, in so many words and by so many actions, many people do. But of course you’re not! You’ve been perusing this incredibly helpful website!

Next Car Buyer Help – Buyer Advantages