The Foursquare Write-up. Step Three: Monthly Payment

The payment square is where the dealer would like to perform most of the upcoming negotiations. He knows that most customers will focus on what they will be spending every month. Also, this is where the customer will have the most flexibility. For example, it is easier for a salesman to get a customer to “Bump” their payment by $20 a month than to ask for a $1,000 cash down payment. The salesman will present the “hit-figure” by using the customer’s down payment as a base for calculations. For instance, the salesman might say: “Because you are not making a down payment, your monthly payments will be around $800.” Keep in mind that the salesman is being purposely vague and does not use a payment calculator to produce this payment. His goal is to get the customer to think about a higher payment.

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Therefore, when the customer responds and says, “$800–that is too much!” Then the salesman can say “Well, that is based on a shorter term loan; if I could extend the payments out, your payment would more like $760.”Again, the salesman will present two or three “hit-figures” and then ask the customer for an offer.

Some “old school” techniques instruct the salesman to write each reduced “hit-figure” smaller and then make the customer’s offer very small.
Once the salesman has the customer’s offer for the trade-in value, down payment and payment, he will ask for the customer’s commitment.
The commitment will be phrased as, “So let me get this straight. If I was able to show you $10,000 for your trade-in, and keep your payments at $200 per month with no money down, you will buy the car today…is that right?” If the customer says “Yes,” the salesman has a “committed foursquare Write-Up.”

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