The Foursquare Write-up. Step Three: Down Payment
The next square in the Write-Up process is the down payment. This section is designed to make the customer commit to what he would like to pay as a cash down payment. Even if the customer has equity in his trade-in, the salesman is trained to discover how much cash the customer has.
The salesman will use the same process as with the trade-in square, but this time he will begin by presenting the customer with a very high hit-figure. Normally, he will tell the customer that the bank would like to see 25% of the purchase price as a cash down payment. In this example, the salesman uses a $7,000 “hit-figure.” Most customers will not want to make a large cash down payment and the process will continue until the salesman extracts the amount the customer will agree to put down. In this illustration, the customer offers nothing as down payment.
This section will provide the salesman with insight about the buyer’s preparedness. A customer who has been planning to buy a car many times will have thought about how much money he would use as a down payment. Salesman often will prefer the “impulse” commitment, meaning that the customer has not done any pricing research. These customers will almost always refuse to make a cash down payment.