Do you know these car dealer red flags, like the four-square paper? Don’t sign any paperwork for your new vehicle until you do.
Car dealer Zac Hafer (@thekindcarguy) TikTok “car guy” and self-proclaimed “nice” dealer has a warning for new car buyers.
Hafer posted his advice to his TikTok account on Sunday. So far, the video has over 79,500 views.
Major Car Dealer Red Flags
“Do not let a dealership scam you,” Hafer starts.
“If you see a sheet like this,” you should run, claims Hafer. He shows his viewers a four-paneled grid that contains several figures.
“You got your price, you got your trade, you’ve got money down, you’ve got a monthly payment,” he states. “But you don’t have term. You don’t have [interest] rate; you don’t have fees.”
He continues, “You have no idea what you’re actually paying for.”
These red flags should make you wary. In fact, Hafer states in his video’s caption, “This is serious! Don’t accept this!”
What you should look for
Hafer then tells his viewers what to look for when a car dealer hands them their paperwork.
“You should be able to see absolutely everything,” he says, including the vehicle’s price, discounts, and rebates.
“You’re gonna have taxes, title, fees, he states. “On top of that, you should also be seeing financing terms.”
He also states that the paperwork should include a more complex grid breaking down your monthly payments. The payments should be based on an estimate of local credit rates.
“Don’t let someone run your credit until you know that you’re on the right car,” he advises.
@thekindcarguy This is serious! Don’t accept this! #dealership #carbuyingtips #DealershipLife #Salesman #dealershiptiktok #CustomerService #CarBuyingTips #sales ♬ original sound – thekindcarguy
The ‘Four Square’ red flag
The four-square grid paperwork described by Hafer in the first part of the video is known colloquially as the Four-Square Method, and it’s meant to confuse you.
According to RateGenius, “It mixes the price of the vehicle, down payment, trade-in value, and monthly payment into one transaction.”
Confirming Hafer’s advice, the outlet notes, “Don’t commit to buying a vehicle until you receive a clear, written breakdown of all of the costs involved.”
“The whole point of a four square is to focus a buyer’s mind on a monthly payment instead of the total price of the vehicle,” a former salesperson told Consumer Reports.
To avoid the ploy Consumer Reports advises, “to negotiate the vehicle price separately from the financing.”
Viewers weigh in
Some viewers bemoaned the frustrating car-buying process.
Lyndsey Morris (@lyndseylynz) wrote, “I hate going through the car buying process. It’s hard finding honest salesmen.”
Another viewer simply stated, “There is no ‘reputable car dealer!’”
However, many offered their advice for negotiating at the dealership.
“Negotiate the price of the vehicle. Then move on to down payment and trade. Then financing if you need it. And be prepared to walk. Plenty of dealers around,” one commented.
Another added, “If you give me the 4 square to sign and then bring out the sales sheet and I see crap I don’t like don’t think that my signature on the 4 sq is binding. I will walk out the dealership. I’ve done it.”
The Daily Dot reached out to Hafer via TikTok comment and messenger for a statement.
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