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A four-square is a negotiating tactic dealers use in order to set you up for a battle. While it is an old-school tactic that is going away, a surprising number of dealers still use it. It’s in your best interest not to play this game. I’ll show you why.

Typically, a salesperson will draw a big line through the paper both vertically and horizontally. Then, in the four boxes, they’ll write payment, down payment, price, and trade.

After you have told the salesperson what you would like to see in each of the four squares, they’ll take the paper back to a sales manager or closer. The closer will then cross out your ideal numbers and write in ridiculously high numbers and try to get you to commit.

The initial pass from the closer is meant to shock you in order to get you to come off of your low numbers. They call this “peeling you off the ceiling.”

The sad thing is, these aren’t actual numbers. No bank has approved these terms at this point and the dealer isn’t even sure he can get you a loan if you were to commit to these high numbers. The goal is strictly to get you to give up what you originally hoped for.

You’ll find that, depending on the closer, every dollar will be a grind. You are trying to drop the payment $100. He’ll drop it $5. It’s a brutal battle.

Why does the dealer do this? Because after you’ve committed to a set of numbers, the finance manager has to get your loan purchased with a bank. The more room the closer allows the finance manager in your numbers, the more money the dealer can make.

For example, if you commit to a $400 payment when the vehicle can easily be purchased with a $350 payment, the dealer can raise your payment by adding any number of products or fees onto your loan. If the dealer gets you to commit to $400 a month and the bank will only approve $350, the dealer looks like a hero.

Don’t play this game.

As a rule, you are better off not negotiating at all. If you’ve done your research and are realistic about the value of the car you want to buy, make a reasonable offer. Tell the dealer what you want to pay, what you want for your trade, and that you already have financing arranged at your bank or credit union.

If the dealer says no, give him your phone number or e-mail and tell him to let you know what he can do. Be courteous but firm.

Making unreasonable offers will inevitably land you in the negotiating seat, where you don’t want to be. Many times, people will complain about the long negotiations in a vehicle purchase. What they don’t tell you is that they wanted to pay $10,000 for a car that was worth $15,000. Doing research and being realistic will help you to avoid the negotiating chair and you’ll still end up getting a great deal with less heartache.

Of course, this also assumes you have good credit and are not upside-down in your trade. In these situations, you will need to sit down with a dealer and talk through your purchase. But if they pull out the four-square, walk away.

When I train dealers, I have another name for the four square: picking a fight. If somebody wants to fight you, take your Mom’s advice: walk away.

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