Dealer Strategy

The Four-Square

This isn't just a worksheet. It's a psychological weapon designed to confuse you by mixing four separate transactions into one messy "payment."

How the Four-Square Trap Works

The Simple Version

The salesperson draws a big cross on paper, creating 4 boxes: Price, Trade-In, Down Payment, and Monthly Payment. They shuffle numbers between boxes to make you THINK you're getting a deal while they actually increase their profit.

The Psychology Behind It

The Four-Square exploits a critical weakness in how humans process numbers. By showing you 4 different figures at once, your brain can't track all the changes. While you're celebrating that they "raised" your trade-in value, they've quietly increased the selling price by more than that amount.

The Four Squares Explained

1. Vehicle Price

They start high, then "negotiate" down - but never to their real bottom line. Every dollar they "give" here, they take back elsewhere.

2. Trade-In Value

They lowball initially, then "bump up" your trade. But check the math - they often raised the price more than the trade increase.

3. Down Payment

Used to distract you. "If you put $2,000 down, I can get you to $400/month." But they're not lowering the price - just moving money around.

4. Monthly Payment

THE TRAP. They focus you here because extending the loan term lowers the payment while costing you MORE in total interest.

Real-World Example

// Initial four-square:

Price: $35,000 | Trade: $8,000 | Down: $0 | Payment: $550/mo

// You push back on the payment...

Price: $36,500 | Trade: $10,000 | Down: $1,000 | Payment: $480/mo

// You "won" a lower payment, but:

• Price went UP $1,500

• Trade increase was only $2,000 (net: +$500 for you)

• You're putting down $1,000 cash

• They extended the term from 60 to 72 months

You actually lost $1,500 + more interest!

See It In Action

Watch how the numbers can be manipulated. Drag the sliders to see how dealers shuffle value between squares.

De-Coding The "Four Square"

This piece of paper is designed to confuse you. Dealers use it to mix up four distinct numbers so you lose track of the actual price of the car.

Click "Activate Trap" below to see how they trick you.

Trade Value

$5,000

Vehicle Price

$35,000

Cash Down

$2,000

Monthly

60 Months

Normal Deal

This is a fair baseline. You agreed to a price of $35,000.

Click the button below to see how a dealer manipulates these squares to hide extra profit while keeping you happy.

How to Beat the Four-Square

Take the paper and draw an X through 3 boxes

Cross out Trade-In, Down Payment, and Monthly Payment. Say: "Let's settle on the price of the car first."

Negotiate ONLY the out-the-door price

This includes all fees, taxes, and charges. Get this number in writing before discussing anything else.

Handle trade-in AFTER price is locked

Once you have the OTD price, THEN reveal you have a trade-in. Better yet, get trade-in quotes from CarMax/Carvana first.

Come with your own financing

Get pre-approved at a credit union. If the dealer can beat it, great. If not, you have a backup that prevents manipulation.

Red Flags to Watch For

"What monthly payment are you looking for?" - They're setting the trap
Salesperson folds the paper or covers squares - They're hiding numbers
"I got you an extra $1,000 for your trade!" - Check if price went up too
Multiple trips to "the manager" - Classic psychological pressure
"Let me sharpen my pencil" - Numbers are about to move around

Quick Script

"I appreciate the worksheet, but I'd like to negotiate the out-the-door price first. Once we agree on that, we can discuss my trade-in and financing options separately."

Need a number to fight back?

Use our Deal Grader to know exactly what a fair price looks like before you negotiate.

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