Car | Average incentive value | Average incentive value per vehicle
Hatchbacks/wagons | $1,300 | $400
Budget and small cars | 1,000 | 450
Sporty/convertible | 2,300 | 750
Sedans | 2,300 | 1,200
Minivans | 2,200 | 1,600
SUVs | 2,600 | 1,900
Pickup trucks | 3,200 | 3,100

It's important to consider other factors, like maintenance, depreciation, dealer incentives, safety and fuel efficiency. Consumer Report says, "getting a great deal on a bad car is no deal at all."

Driving a great, end-of-summer new car deal [Consumer Reports] (Photo: jurvetson)

"Why GM cant sell cars: What employee pricing cant fix" [www.schiffner.com]
(Photo: spcummings)

• What's The True Cost Of A Trade-In? Use Edmonds' calculator to price-out the cost of a trade-in. The results may be surprising: trading a 2005 Ford Expedition for a 2008 Toyota Highlander hybrid won't produce savings for almost 15 years.
• Is A Small Car Practical? You bought a SUV for a reason, right? RIGHT?! Yeah, think about that for a moment before looking at a new Smart.
• Are You Thinking With Your Brain Or Your Gut? Gas prices are rising, but the overall cost of ownership is stable. Your insurance bill is probably the same, and your mechanic isn't raising prices. Now might seem like the right time to get a new car, but “if you’re selling an S.U.V. or trading it in, you’re selling an asset at the low ebb in its value and trying to buy an asset that’s been bid up in value,” says Mr. Nerad of Kelley Blue Book. “In stock market terms, this wouldn’t be a propitious time to make that kind of trade.”

Is it worth trading in your gas guzzler? [Edmunds]
Ditch the Gas Guzzler? Well, Maybe Not Yet [The New York Times]
(Photo: Getty)

Andrew writes:

As an avid reader of the Consumerist, I hoped to never have a need to write in myself. Unfortunately, the way Best Buy handled a situation with my wife's vehicle has changed that.

Several months ago my wife decided she wanted to get a remote car starter installed in her new Nissan Altima. She always had one on her previous vehicle and Best Buy had done the install before. When we went into the store they seemed a little confused by the smart-key system that comes with the car. Basically it does not use a traditional key to start, but rather a push button start in the vehicle with a key fob you just keep in your pocket. After making some calls the Best Buy technicians assured us they could do it without an issue.

When we returned to pickup the car we were informed it was not yet ready, and they needed it for another day. We were very accommodating and worked out alternate transportation for that day. After picking up the car we discovered the locking and unlocking of the doors no longer worked properly. At first they tried to claim this was just the way it was going to work now, but we explained that we were not told that up front and they could just take out the system. After a few phone calls they then told us to bring it back again for "programming" to fix it. So yet another day without a car goes by and the doors are now working.

After driving the car my wife discovered her electronic windows no longer are working correctly. We then noticed one of the remotes would actually remote start the car when you tried to lock the doors. Several more treks back into Best Buy to get these problems fixed occur. The next problem is that there was a blue alarm light constantly blinking in the face of the driver. It was very distracting to the driver at night, and my wife was concerned she would get into an accident. This happened on a weekend, so we were forced to not drive the car until they were able to get to it during the week. They were never able to actually fix it, but ended up just disabling the light.

There have been a multitude of other issues since then such as the remote start not always working when you push it, the car taking multiple attempts to start even when not using the remote start, and worst of all the fact that the vehicle can now be started without having your foot on the brake (a child can start it from the passenger seat even without a key).

Finally when we were already very unhappy with the system and things still to this day have never worked properly, my wife's brake lights stopped working! She drove around running errands and very easily could have gotten into a wreck and injured herself and others. We took the car into the dealership and they said the issue was the result of the system Best Buy installed and it burned out some wiring in the vehicle. We had to pay ourselves to fix the problem and had to go yet another weekend without the use of the vehicle. The dealership told us this system could cause further problems and might void the warranty, therefore it should be removed.

We decided this was the last straw and followed the dealership's advice. We returned to Best Buy and spoke to a manager. After explaining the situation they initially offered to pay only for the cost of the brake light repair and to remove the system. We would not get back the money for the system itself, the install, or even some additional parts they required us to buy to make the install work. After telling them that was unacceptable and threatening to pursue other alternatives, they still only offered to refund the price of the system itself, but all the install and parts would not be refunded. When I asked for an explanation we were told we could not have a refund because the install was completed. But our argument is that it was never completed properly, and even did damage to our vehicle! We asked to speak with the corporate employee who was making this decision and were told they could not provide that information and that this was their final decision. We would even have to sign a waiver absolving them of all responsibility to get what they were offering. So basically we end up paying several hundred dollars for absolutely nothing and have no recourse for future action!

We have been loyal Best Buy customers and have spent 10s of thousands of dollars at their store. We buy all of our electronics and appliances from them, and to be treated this way over a few hundred dollars is insulting. I was hoping the Consumerist would be able to assist and provide the proper contact to help get this issue resolved.

Install fee: $147.73
Keyless System: $137.40
Install Module: $22.16
Materials Charge: $3.69
Extra Keyfob they destroyed to install: $61.52
Repairs at dealership for wiring system: $90.00

Total money out was $464.50 + tax
Offered by Bestbuy: $227.40 back and they take the system
Total out: $237.10 and we have nothing to show for it but trouble!

For starters, don't sign any waivers, and don't let Best Buy claim brownie-points for effort. They failed to install a working system. They can either refund all your money, or you can file a chargeback.

Don't waste time reasoning with a manager whose only interested is covering his own ass. Instead, politely address your request to Best Buy's higher-ups.

(Photo: Getty)

Castleman responded by angrily withdrawing the scholarships, leaving the four students without the means to attend college.

The president and CEO of Castle Automotive Group, Howard Castleman, said it didn't have to be this way. "We opted not to give it to them because of, quite frankly, attitude," he said in a phone interview. He said school officials accused him of wanting to bring in a "media circus" and would not allow him to hang his company's banner.

Castleman said that having press at the event would have paid public tribute to the teacher who died, it would have encouraged more people to donate to the school, and "we would've gotten some PR."

[...]

"My family was very excited when they heard I would receive the money from Toyota in order to go to college," said one of them, Iftin Iftin, a Somali refugee who graduated from Patterson on Saturday and plans to study English and computer programming.

When D'Anna summoned the students to tell them Castle wasn't donating the money after all, Iftin said, "I couldn't even smile all day." At night, he said, "I couldn't get sleep."

Castleman also decided to cancel his annual Christmas party for poor Baltimore children, saying "This is it. I'll never have another Christmas party for these kids. It doesn't pay."

Um, the missed lesson here, Castleman, is that charity should be its own reward, not a hackneyed public relations scheme.

Firm reneges on scholarships [The Baltimore Sun] (Thanks to Stanton!)

Dealerships loathe credit cards for two obvious reasons:
Fees: The 2% transaction fees easily costs a dealer several hundred dollars.
Financing: Dealers receive lucrative incentives for arranging financing. They don't want the credit card companies having all the financial fun.

Just because you can use a credit card doesn't mean you should. Dealers factor the method of payment into their negotiations, and asking to pay with a credit card could jack up the price and deprive you of leverage. Even worse, financing your car on the back of your credit card could be a risky financial bet. That said, if you can pay off the car relatively quickly, your credit card can provide a windfall of cash back or frequent flier miles.

Convincing the dealer to accept plastic requires a copy of the cardholder agreement and a few shots of tenacity and persistence. First, negotiate the price of the car. Then, calmly explain that you'll be paying with credit.

Sound outlandish and ridiculous? Fine, don't trust us. Trust Matt Fadiman, Vice President of Riverbank:

...as per both the MasterCard and Visa merchant agreements, a participating merchant must accept that credit card (assuming it is valid and approved) for all purchases. The merchant cannot, by policy or practice, decide which transactions it will allow and which it will not.

I do agree that in reality many dealerships will attempt to refuse to charge the sale on a credit card, but when pushed they will back down. I have purchased my last 4 cars all on credit cards. To say the least the dealer was not happy, but when presented with both a copy of the merchant agreement, and my declaration to pursue with the credit card company, they quickly reversed their position. My calculation is that between the rewards (cash back) and the zero percent rates on the credit cards, my savings were well in excess of $6,000.

Visa confirms that dealers don't have a choice:

U.S. merchants must follow basic card acceptance rules for all Visa transactions. Visa's rules do not allow merchants to impose a maximum transaction amount as a condition for honoring a Visa card. Our rules require merchants to always honor valid Visa cards regardless of purchase amount — large or small.

There are plenty of reasons not to pay with credit, though the thought of charging back a lemon is tempting. Would you ever put a car on your card?

Savvy shoppers may get car with card [Bankrate]
(Photo: Peter Kaminski)

UPDATE: Brian says the tech said the root problem was frayed and rubbing wires.

PREVIOUSLY: All The Dashboard Lights Flash Whenever I Drive My Dodge Charger In The Rain

15 minutes after Ken won a no-reserve eBay auction for a new BMW 3 Sedan for $60,000, he says a salesman at BMW of Lincoln nervously called him up and said that the price was a "mistake." "When I pressed the issue and raised the possibility of legal action," Ken wrote on the m3post.com forums, "this guy had the nerve to condescendingly laugh and say we are a multi-billion dollar company, ebay will definitely side with us." Actually, that's not how eBay works. eBay says its sales are legally binding contracts. Ken has already started the dispute resolution process and eBay seems inclined in his favor. If the dealership loses the appeal, they will also lose their eBay seller account.

BMW dealer auctions new M3 for $60K on eBay, doesn't want to honor the deal [AutoBlog] (Thanks to everyone who sent this in!)
Won ebay auction at 60K for E90 M3, BMW of Lincoln refusing to honor [m3post]
[eBay Auction]

March 13, 2008
Robert Nardelli
Chrysler LLC
1000 Chrysler Drive
Auburn Hills, MI 48326-2766
Dear Mr. Nardelli:

Thank you for taking the time to read my letter. I am writing about a serious and very dangerous condition that exists with my 2006 Dodge Charger. My name is Brian. I own a 2006 Dodge Charger that I purchased new at Danbury Dodge in Danbury CT on February 18, 2006. The current mileage of the car is 37200 miles. I am writing to bring a serious trouble with my Charger to your attention. While driving the Charger, usually during a rain or inclement weather, a tone will sound and the brake assist and stability control lights on the dash cluster will come on.

Soon after, all of the lights on the dash cluster will begin to flash randomly. This includes the oil light, the check engine light, and even the speedometer and rpm meter. The engine and transmission will experience trouble shifting gears or accelerating or climbing hills. Sometimes the car will engine will shutter and not move. Once the vehicle is stopped and the engine shut off, the engine will not turn over for 5 to 10 minutes. Eventually the engine will turn over and the car will continue as normal or under partial power. This trouble has occurred four times.

I have taken the Charger to Danbury Dodge for repair three times and Meadowlands Dodge in Carmel, NY once. Neither dealership has replicated or repaired the trouble. The dealers will not do any further work on my vehicle until they replicate the problem. Unfortunately the trouble happens intermittently and without warning. So now I am left with little option but to contact Chrysler to resolve this problem. The first serious trouble occurred at approximately 7PM on or around August 18, 2007. The Charger was parked outside in the rain all day at my place of employment. The rain stopped shortly before 7PM that evening when I started the car. When I started the car the BAS and ESP lights came on instantly. The engine was making pinging noises and not driving under full power. I took the car to Danbury Dodge for repair. I dealt with Derek Thomas, the service advisor at Danbury Dodge. The technicians repaired the rocker arms. Derek mentioned codes for loss of communication and claimed the trouble was fixed.

The same trouble occurred a second time at approximately 6:30AM on September 9, 2007. I was driving on the highway in a light rain. The ESP and BAS lights came on followed by the other lights on the dash. I stopped the car, turned off the engine and had trouble starting the car. My mother was in the Charger at the time and witnessed the trouble. I took the car to Danbury Dodge, and they repaired a tube gasket and were unable to replicate the trouble.

The third instance occurred on October 10, 2007 at 7:21AM. The dash lights came on, reacted randomly, and the car was not able to climb any hills without stopping. I stopped the car, turned off the engine, and experienced trouble turning the engine on again. After about 10 minutes I was able to start the car and drive to work. I took the car to Danbury Dodge and they were unable to replicate the problem and did no repairs. I then took the Charger to Meadowlands Dodge in Carmel, NY. I dealt with Billy O'Brien. They were also unable to replicate the trouble despite driving the Charger down an interstate highway in the rain.

The most recent instance occurred on March 7, 2008 at 7:30PM. I was driving the car in heavy rain and, like clockwork, I heard the tell tale tone and all of the dash lights began to flash. I stopped the car, turned the key and was unable to start the car for 5 minutes. I was able to start the car and make it home. I took pictures of the dash lights using my cell phone. The problem occurred during the evening so I was unable to take my car to a dealer right then and there. I could not leave the car running until the dealership opened at 8AM on Saturday. I have not had the opportunity to take my vehicle to the dealer since. I know what to expect at this point.

I also took a video of the third instance, and it on youtube.com for the world to see. I believe that by showing as many people as possible proof that the problem with my Charger exists, maybe that will motivate your company to do something about it. The url is http://www.youtube.com/watch?v=xDjwvHVMD6s. Please be sure to read the comments left by other visitors as well. I am also sending a copy of this letter to the consumer website The Consumerist at http://www.consumerist.com. The website is very insightful and I look forward to sharing my story with people across the world.

My Charger has undergone 4 repair attempts with no resolution. The dealers are unable to replicate the trouble and are therefore unwilling to do any necessary repairs. My vehicle has been out of service for around 15 days thanks to Danbury and Meadowlands Dodge. I am constantly afraid that my car will malfunction during a rainstorm, or at any time, and put my life and the life of my passengers in danger. In my experience Dodge and Chrysler dealers are not obligated to honor the warranty or fix obvious troubles. You and your fellow corporate leaders at Chrysler have the power to produce and maintain safe and reliable vehicles. That is the way to solid profits and loyal customers.

Sincerely,

Brian

I have a complaint about hidden fees that some car dealerships try to get away with.

The state of Texas charges any business an inventory tax in January of each year for products in warehouse at the end of the year. It's not much, @0.02% of the retail value of the item. Some large national companies ship inventory out of state to other warehouses to avoid paying the Texas inventory taxes.

Several New and Used car dealerships go one step further and try to charge the consumer the Vehicle Inventory Tax on every car sales receipt during the year.

Although the Texas department of transportation office says by definition the "Vehicle Inventory Tax (VIT) - A property tax that dealers pay on their business inventory. This is NOT a tax that is required to be paid by the consumer." referenced at www.txdot.gov/publications/motor_vehicle/section01.pdf

The finance person at the dealership doesn't like it but persistence has prevailed. Though they claim to not be able to remove the fee, I have successfully negotiated out of paying this hidden fee at the dealerships by quoting this manual. They usually adjust the sales price down to cover this line item on the retail purchase contract.

(Thanks to Mike!)

"Motor Vehicle Dealer Manual - Section 1" [Texas Department of Transportation]
(Photo: A contradiction of terms)

I looked at him incredulously. "Absolutely!" I responded. "For corporations. The consumer is stripped of their rights and forced into a process that rules against them over 90% of the time."

He counters with decreased legal fees and other selling points, and then hits me with the killer, "If you get an unbiased arbiter, it's the ideal solution."

Do you agree now he's just asking for it?

"There's the issue," I replied. "The consumer doesn't get an unbiased arbiter. The arbiter is chosen by the corporation, and those who don't give the corporation the ruling they want are not chosen again."

He went back to the unbiased point again. He apparently wasn't going to be able to see it from the consumer's side, so I gave up.

But at that point I knew...had it just been me in that dealership, I'd have walked. But my wife has to put up with a lot of my arguments of principle, and this one would have cost her a shiny new vehicle.

(bonus: The first time he made the 'unbiased' argument, he couldn't remember the word 'unbiased'. I had to prompt him.)

- Sean

RELATED:
Said No To The Doctor's Arbitration Agreement
Arbitration Clause Destroys American Dream
Arbitration Firms Are Godless Bloodsuckers
Arbitration Firm Rules Against Consumers 95% Of The Time
9 Reasons To Ban Mandatory Binding Arbitration

A friend of mine bought a 2005 Toyota 4 Runner for about $25000. When he went to the dealer, he told them that safety was a big concern as he has small children, and he wanted to get as many safety features as he could on the vehicle he was going to buy. The saleswoman showed him the 4 Runner he ended up buying and pointed out that it had side and curtain airbags, which were listed on the sticker. He bought it, and a week later he took it to get inspected. It turns out that it does not have the side and curtain airbags that are listed on the sticker. He went back to the dealership and spoke to the manager who offered him a few free oil changes, and tried to tell him that that year didn't even come with those airbags so what was he complaining about. What should he do? They already got rid of the truck he traded in, and is thinking that the dealer owes him some cash back on the deal.

(Photo: Getty)

Being thrifty, Brant said, comes naturally.

"I reckon I was just brought up that way," he said.

His father always paid cash, he said, and it's a tradition he carried on.

Besides, he added, "Checks are no fun."

He makes it a habit to save his loose change, he said, explaining that he cleans out his pockets every morning, and doesn't hesitate to pick up stray coins from the ground wherever he goes.

"Once you drop them out of your hand, they're gone," he said. "They don't last very long."

Man Saves Loose Change, Buys New '08 Pickup Truck [The Times]
(Photo: emilybean)

...take your potential purchase to your mechanic for an independent inspection. A good tech will spot hidden problems. Independent inspections usually run $75to$100. It's the best 100 bucks you'll ever spend on a car.

(Photo: DCvision2006)

It seems as I'm falling a victim to a Yo-Yo Car Financing | Spot Delivery Scam from a car dealer...

I purchased a new Toyota (scion) vehicle at a dealership exactly 2 weeks ago. I drove away. The total price was $20600 - I left a $500 down-payment. 13% APR in my contract. $470 payments for 60 months. Finance manager pressured me into purchasing GAP and extended warranty (around $2100 total) saying that banks would likely grant me a loan if I show them I'm serious about investment. Well, my credit is sub-prime (620 FICO) with few accts that are almost falling off and 2 recent ones for a few hundred bucks. But I still smelled something fishy though...

To make a long story short - last Friday, finance manager called me and told me he wasn't able to obtain financing through 5 banks. I told him I had a blank check from Capital One, that I'd be willing to use after verification process - so I'm working on that now. He said that's fine. But he also asked if I could put more money down, to which I said "NO", explaining that my rent and other monthly expenses need to be covered. I'm in the process of repaying debts to my friends, so I'm not able to put more money right now.

My question is - what happens if Capital One doesn't finance? Am I correct believing that I'd have to return the car back to the dealer? Will they refund my $500 down payment? What about car not being new anymore and having 1300 miles. I heard about dealers asking to bring car back before - but not sure how the process goes. I have that long contract on my hands with APR and payments, etc. - and it says Toyota Motor Finance. I actually don't mind bringing car back to punish them *they knew what my credit was like*, I'm just worried about down-payment. I think they'll try to pressure me into higher APR / payment situation. Do you know what the proper course of action is?

Great advice,

Thanks Ben. I just spoke to a friend's brother (who was a Toyota selling guy for 10 years) and he told me that I was scammed and that I should a) do what you suggested + cancel my gap and extended warranty.
The only thing I'm not clear about is the deposit - actually it's not big by any means (but 500 is 500) and I did put 1200 miles in 2 weeks - so I'm wondering whether they'll try to charge me. I actually realize that it doesn't make sense to them to take the car back, since it's not officially new.
I'll keep you posted. Have a great holiday season!
My only concern left is whether: A) I should arrange my own financing (possibly with higher APR) - I really don't want that and I think I could live without a car for few weeks till I get something else.

-Andriy

As for your next car, ever think about driving a used beater? There's a concept we enjoy on the site called, "don't buy what you can't afford," which is to say, avoid going into debt. If this is too hard, and you do go through a dealership, come with your own financing, i.e., arrange your financing with your bank or credit union first and walk in with that.

Actually, that's the reason I don't want to keep the car. With 3 monthly payments I could get a 10-15 year old Honda....Traffic is so bad around DC that I realized that I'm not driving as much as I thought I would.
I guess I could loose the deposit, but that's better than overpaying $8000 in interest on a $17k car. I'll see how the developments will go. That old pal editor - is a powerful thing anyway. I just sort of feel bad, cause the finance manager seemed so be willing to help me, etc. I guess they have to pretend friendly. Actually spot delivery is something big in MD - Here the say that MD MVA (DMV) doesn't permit temp tags - "

"Temporary registration permits, or certificates and plates, may not be used by dealers in cases where vehicles are released to potential purchasers prior to consummation of a vehicle sales transaction. These types of transactions are commonly referred to in the industry as "Spot Delivery," "Fronting" "Macarthur Statement," etc.
I guess it's just a lot of stress, etc. I'll try calling the manager and let me know what's going on. The only thing I'm worried about is that he doesn't mind me getting my own financing.

10. "I think you can do a lot better than that."
9. "Sure, I'll look at the numbers with you."
8. "What's the lowest price you can give me?"
7. "I'll take whatever the popular options are."
6. "Oh, I've wanted one of these all my life."
5. "I'm not sure...which model do you think I need?"
4. "I'm only buying the car with cash."
3. "Yes, I have a trade-in."
2. "I can afford this much per month."
1. "I'm ready to buy now."

Things to Never Say to a Dealer [ForbesAutos]

The issue was that he had bought a $300 service coupon book in 2006 with his Honda Odyssey minivan. These coupons were for free oil changes, discounted repairs, etc. The new owners of the dealership had decided not to honor the coupons. The were immovable. When The Fixer got involved, she tracked down the original dealership owner who ended up refunding Colin for the coupon book.

Takeaway: we're not the only shame game in town. Especially if your complaint is with a local business, try seeing if your local newspaper or news channel has a "Fixer" or "Trouble Shooter Team" you can get involved.

[Chicago Sun-Times]

On July 19th, 2007 I drove my leased BMW in Escondido, Ca. (Brecht BMW). I was told by Chase (the lender) to take the car back to any dealership. That I should take a photo of the car in front of the dealership I am leaving it with and have the dealership verify the odometer reading, leave the keys with them and I would be done. If I did not turn the car into a dealership by the 19th, then I would be financially penalized.

I walked into Brecht BMW and the first sales person I met asked me if he could help me. I said yes I am here to turn in my lease. He asked if I had bought my car from them. I said no, I bought it from Irvine, but I was told by Chase that I could take it anywhere. He said no he couldn't help me b/c Chase was closed and he needed the buyout amount. I said no, they told me that he wouldn't need to do that b/c they aren't buying the car. He then told me that he wouldn't help me. I told him I would be penalized if I didnt' turn it in today and that it was a fast transaction. I also told him that I lived 45 miles away and have little ones (who were with me) and it was hard for me to get down that way. He said he would talk to the manager. After a couple of minutes he came back and said no again, they couldn't help me but could if I came back the next day. I again explained that I worked and lived 45 miles away. I asked why they couldn't do it now — telling them that I am sure they would be able to help me if I was buying a car.

Next the manager came out and said, you need to leave or I am going to call the police. I asked for his name. He took out his business card and threw it at me. I said, I don't understand why they are unwillinig to help me. I then started to explain all the problems I had had with the car over the 4 years. Based on my miles my car should have been in for maintenace 2 times — it was in about 10 times. Each time was 3 hours round trip of my time and gas for the extra diving. I was starting to tear up and he smiled. I told him that I was doing everything I was told to do and that they could provide me customer service, but were choosing not too. I said, I don't understand why they won't just sign the odomoter form. I said that I had better treatment from VW when I owned my BMW. He told me to go back to VW, because 'I don't deserve to own a BMW.' He again said to leave or he was going to call the police. By this time my children were in tears because he was yelling at me and threatening me. We left without them ever assisting us.

The next day My brother spoke to the GM and explained the story. He never apologized and still refused to help us with the lease return. We also called BMW of north america. The rep on the phone said that they are a franchise and that corporate has no control over them. He said he would note it down, but 'don't expect a call back.' Basically, corporate doesn't care about customers being mistreated.

My brother took my car across the street from Brecht to Mercedes dealership. Who took the car, filled out the odometer form and took the keys. My brother was out the door in 5 minutes. Why did BMW refuse to help me with their own product??? I still to this day have not received any explanation. The only thing I can think of is that they were not going to make any money off of me that night so they didn't want to help. Why is there no one in the entire corporation that cares about customer service. I have emailed my story to BMW North America, BMW WorldWide, and Brecht BMW — no attempt has been made to contact me or correct the abusive treatment I received.

Still to this day, the home page of Brecht BMW reads 'we are an authorized lease return facility'................

Dealerships closing after Huling Bros. scandal [Seattle Times]
(Photo: Thomas James Hurst)

In this setup, a dealership lets you drive away before signing a contract, saying the "banks are closed." Then when you come back, surprise surprise, the financing terms have changed, costing you thousands more. Scam dealerships know that customers will find it hard to part with a car after forming an emotional attachment with it, but if someone tries to pull this on you, that's exactly what you need to do. Drive the car back to the lot, hand them the keys, thank them for the free rental, and get the heck out of there.

That video was posted June 22nd. On September 1st, 3 days before it was set to appear on national TV as part of ABC's i-Caught, Brad Benson posted this rebuttal video.

RELATED: Beware of Spot Delivery! Don't Be Put "On The Spot." [LemonLaw]

His first story is about how he himself got screwed, and then unscrewed, on the first car that he bought...

After happily put-putting home in the new car, he noticed an ad by the dealership in the paper offering a $1500 discount for any car purchased over the weekend. For some reason, his salesman never mentioned this offer to him. When Burley tried to ask for the deal retroactively, the dealership said sorry, we can't change a contract once it's been signed.

"I replied, "What do you mean? You advertised the special. The sale representative should have told me about it! It's just not fair."
"That's our policy. I'm sorry."
"It's a bad policy," I said, for lack of any other words, and hung up the phone.
I was livid. I'd just been screwed out of $1200... Something had to be done."

"What do you intend to do with those?" he asked..

"Mr. Smith," I said coolly, even though my hands were sweaty and shaking, "at this point, it doesn't really matter to me whether I get my money back or not. I am going to exercise my First Amendment right to stand on that public sidewalk in front of your dealership. I'll hand one of these flyers to anybody walking onto your lot. I'll be carrying a picket sign with the same message."

I continued, "I'll bet that, in just a handful of Saturdays, I can convince a couple of dozen people to shop elsewhere. It could end up that, by not paying me what's due to me, you lose ten times that much in future business. It won't put any cash in my pocket, but I'll feel a lot better about things. What do you think?"

Burley could've filed complaint letters and made calls up the management food chain, he could've cc'd letters to the Attorney General and the FTC, and maybe even eventually been forced to take the dealership to small claims court, where he would've won, as it is actually the law that merchants have to honor their advertised price. Instead, he chose a direct course of action that in broke the problem down to terms that any simple business could understand. Much more expeditious, and probably more satisfying.

Court Documents [PDF]
Bill Heard Chevrolet served with state lawsuit [AJC.com] (Thanks to Michael!)
PREVIOUSLY:
UPDATE: Drove My Chevy to the Levy But The Dealer Left Me Dry
Drove My Chevy to the Levy But The Dealer Left Me Dry
(Photo: Review Journal)

I took him outside. We lit up a cigarette, and we walked. We talked about a few things, families, cars, football. We got to a truck that was almost exactly what he was wanting, and I leaned against it...

I told him that for every one hundred dollars the takes off the price of that vehicle, he takes five bucks out of our friend's (the new salesperson) pocket. I told him calmly, "You know, that man is a Gulf war vet, and he fought hard to make sure that I can sit here today and talk to you freely, so I am going to fight hard to protect his interests. If we sell you this car at $4,000 below invoice like you want us to, you are doing him a dis-service. So, here is what we need to do. You need to go in there and apologize to that hard working soldier and come to the realization that what you need to look at less truck, or raise your price."

A tear literally formed in his eye. He had no idea that the new guy was a war vet. He didn't know the hell he went through over there. He felt terrible, and while I hate to see a customer feel like that, again, sometimes it is needed. I walked him back inside and showed him the pictures the salesperson had in his office. His unit, pictures of him in the desert, his awards and certificates. Even I didn't know that this man was wounded in combat.

Three hours later, he left in his new truck smiling. He went up to the new guy and shook his hand, and said thank you. The beautiful part, he said it with pure conviction. I could tell he was saying more than "Thank you for the great deal you guys gave me." He was saying "Thank you for everything you have done."

That is my job people. I have been saying it for years. My job is not to sell cars. My job is not to turn a profit for the dealership. My job is to make sure that every person I touch in my day is left with a positive impression. My job is to make sure that every single person that crosses my path is changed. My job is to make friends and change lives. If you happen to buy a car along the way, then my day gets even better.

Was the discount unreasonable to ask for? Perhaps. Did the salesman merely present him with facts? Sure, the other guy was really a vet. Is that material to your sales arrangement? Absolutely not.

It was a calculated maneuver designed to, as "Bloodraven" writes, protect the dealership's interests. Their interests, not yours. Watch out at the car dealership, they are sneaky mofos (see our post, "Dealerships Rip You Off With The "Four-Square," Here's How To Beat It") and will turn every psychological trick they can to make the most profit. Become steel! Resist...

But hey, at least for the extra money he paid, the customer drove out of the dealership feeling like a really great person. Too bad that's not going to fund your car payments.

A Day as a Salesman [My Ride] (Thanks to David!)

1. Buy in December
2. Bring your own financing
3. Watch out for the squeeze play.

Learn more, inside...

Buy In December
First off, if you want the best deal on a car, everyone knows to wait until the dealership and salesmen are desperate - Guess what? That means December. No one is buying cars because most folks are focused on buying gifts for the family. Everyone from the General Manager to the poor bastards taking "ups" (walk up customers, usually the worst chance of a sale) is feeling the pressure to produce. Now is your time to extract your best deal. Go for everything.. lower interest rate, pricing concessions, free detailing, window tint. Whatever you can think of.

Bring Your Own Financing
It's very simple. Do you have a saving or checking account? Go to your financial institution and get "pre-qualified" . Your bank / Credit Union will give you a realistic idea of how much car you can afford to buy. You may not like what you hear, but you will be better off in the long run (witness the current meltdown over the sub-prime mortgage market) If you are pre-approved, you can shop for a vehicle in a realistic price range, and avoid the temptation of the buying too much car when the dealer flashes a "low payment" at you.

Watch Out For The Squeeze

This one absolutely broke my heart. It's been 10 years since it happened, and I remember it as clear as day. A hard working couple, "salt of the earth" type came down to Phoenix from the Grand Canyon (at least three hour trip) with the ancient station wagon they wanted to trade in for a newer car. They worked at a diner in the park, she waiting tables and he washing dishes. they saved their tips for a year in order to have a down payment. After walking the lot for a half hour, I enthusiastically showed them a 3 year old Nissan Sentra. Well within their price range, solid value, reliable, and easy on gas.

They went through our finance department, and we sent them home, assuring them that we would get the interest rate and payment promised, for the down payment they left with us.

Now the heartbreak. A week later I was called in to the sales managers office and told that I need to "squeeze" the customer - call them up, and tell them to come back to the dealership (3 hours one way drive) and either bring us more down payment, accept a payment double that of the one quoted, or give back the car. "Why", you ask?
Because the finance guys "made a mistake" and couldn't get their loan "done" with any lender.

But finance and the manager weren't concerned at all. They knew once the customer had driven the car for a few days, they would love it, and do almost anything to keep it.

I refused, and quit shortly afterwards."

Thanks, Patrick. Seems to jibe with what we've heard and talked about before. Bring your own financing is probably the most important tip. Otherwise you're going to also have to watch out for the four-square dealers use to rip customers off.

— BEN POPKEN

•Consider A Credit Union For Financing. "Get a pre-approved loan through a credit union, most of the time they will approve you up to a certain amount and give you a check that can be used at the dealership of your choice, which turns you into a cash buyer, you already know how much your payment will be a month, and it makes it so you have one less thing to negotiate with the dealer about."

• Selling Kias is about volume. "Most salesmen don't make squat selling new cars alone, it is all about volume, at the Kia dealership we made $100 per new car from the dealership with Kia offering an incentive called "Kia Cash" where you would call a number after a car had been registered with corporate as being sold and you could "win" anywhere from $25- $500 for each sale you made. Our dealer would also offer weekly "spiff's" where you would get an extra X dollars for every car sold if the dealer sold Y number of cars, or on a weekend if you sold more than three you would get a compound bonus where ever car would be worth 50 bucks more to you than the last one 1st one 50, second car 100 etc.."

• At Carl's Kia Dealership there was a time limit for each customer. "The way we made money pretty much meant that we weren't going to spend anymore time with a customer than necessary. The manager's had an unofficial time limit, if you were with a customer for more than an hour without closing in on a sale, they would either step in or send in a Closer to make the deal go. If we spent more than two hours with a customer they had better be making a bulk deal because it really wasn't worth the time invested."

• Kia dealerships can be sort of sleazy. "Kia markets their cars as a lower cost alternative to Japanese cars and as a result most dealership's aim their marketing at high credit risk customers, because of this,the dealerships can be pretty sleazy to deal with because they know that most people who look at Kia's have been turned away from every other new car lot in town. If you were to wander in to a Kia dealership I would pretty much expect every high pressure trick in the book to be thrown at you."

• Stay away from big chain dealerships. "I would recommend staying away from chain dealerships, auto malls, and anyplace billing itself as "THE BIGGEST (insert brand here) DEALER IN THE REGION!!!" because they are going to be high volume which means that the sales team doesn't have any particular reason to keep you as a return customer. Employee turnover at chain dealerships can be extremely high, especially for positions like management and finance, which can be the most cut-throat positions in the dealership. Not uncommon to see a new sales manager every week or two at some of these places. Small family owned dealerships that have a good reputation in the community are disappearing but they are the way to go."

•Try A Vehicle Buying Service. "Most credit unions also have a vehicle buying service, where an independent party will find a vehicle of your choice and get you a price that is usually right around invoice. I don't think most people could go to a dealership and get the same results that buying services do, and it can save you a lot of time if you know what you want in a car."

• If you're happy, let the dealer bribe you with free gas. "Customer satisfaction surveys are a joke, at the dealer I worked for we would bribe customers with free gas if they let us fill out their surveys when they come in the mail." Sketchy, but hey. It's free gas.

Thanks for the tips, Carl! According to Consumer Reports, Credit Unions can be a good place to get a low interest rate.:

"Because they are nonprofit, their operating costs are fairly low and their lending rates can be quite competitive. Many people belong to credit unions just to take advantage of the convenient loan policies."

Once they get pre-approval "members can essentially shop as a cash customer and that's what we instruct them to do," says Larry Jones, vice president of marketing at ORNL Federal Credit Union in Tennessee.

"Pre-approval is a way you're sure you're going to get the loan," said Ellis Waller, product manager for automotive lines with the Credit Union National Association.

"You can go into the dealership with money in hand at a rate you know is attractive. When you say you have the financing, the dealer won't try to convince you their 2.9 percent financing is better. It's almost always better to take the rebate and finance with the credit union."

There is a clear advantage for the credit union, too. Fewer members end up with dealer financing.

For more info about financing and credit unions:

Credit unions get up to speed for online car shopping [Bankrate]

Where to shop for an auto loan [Consumer Reports]

If you work in the car sales business and want to offer some helpful tips to our readers, write to us at tips [at] consumerist [dot[ com.

(Photo: Ian Muttoo)

Chris writes:

Thanks for the advice. I read the comments people posted on my story. I agree that the repair bill was very high to begin with. I took my car to the dealership because I thought that the repair would be covered entirely under the warranty, or would be something minor, like just balancing the tires. I called Toyota Warranty myself to try and argue that the rotors/pads should be covered because the damage was caused by the failing part, but they wouldn't budge because it was 'consequential damage'. I decided to get it repaired at the dealership anyways, because I thought it was worth paying extra to get their customer service, the nice rental, and to save myself the hassle of taking more time off work to go to another garage. As I said, I really liked the people I had dealt with when I bought the car. It was no pressure and they were reasonable in negotiations, so I got it for a very good price.

So here is how the whole thing ended. I eventually called the service desk myself, annoyed they hadn't contacted me, and they said they were working out a deal and would call me in a few hours. They did call me, and I spoke with the assistant service manager. He brusquely apologized and offered $50 off. I said I saved them from a lot more than that in fines, and they had taken up a bunch of my time. I was firm and polite. The manager seemed indifferent, he interrupted me several times to try and speed things along, offering $100, and then asking what I thought was fair. I had considered this, and I asked for half the repair bill to be taken off. I thought that was reasonable for both of us. He said he wasn't authorized to do that, so he would have to speak with Jamie the customer relations manager and get back to me. I asked if I could just come in and deal with Jamie directly, he said yes, and that my car was ready to be picked up.

I decided at that point to contact Toyota Corporate and see if there was anything I could do with them. They essentially took my complaint and forwarded it to the dealership, which was completely useless - as Consumerist predicted.

I left work early and drove to there with several photo copies of the ticket. I went in and asked for Jamie, they sent me to an office in the back of the service area. After knocking on his door and waiting for him to finish a phone call, we sat down. We reviewed the incident, he apologized several times on behalf of the entire dealership, but he attempted to minimize the situation, saying that the police had made mistakes, and that this had never happened before. Several times he said "No one has ever gotten pulled over in one of our rentals for something like this.", and each time I would reply quickly but calmly "I was." He said that they didn't have the customer copy of the rental agreement, was I *sure* I never got it? I told him I was 100% sure. He claimed if I had the agreement, they would have let me go and there wouldn't have been an issue (implying it was my fault). I told him that I still would have been pulled over, and even if I had the agreement and they let me go, it was hardly what I expected when I rented a car from them. I asked if he would consider it a success if every car he rented was pulled over by the police, but was let go if they showed the rental agreement. He admitted that would be a problem.

I think he realized that I wasn't going to back down on the facts of the situation and that it would be better to just settle the matter. He got the finalized bill, which had been lowered $50 already, because with tax it was just $583. I asked him what he thought would be fair, and he said "Want to split it down the middle?" I clarified that he meant we would each pay half, then agreed that that would be fair. So my final repair bill came to $291.50, which after everything seemed like the right price to me.

Thanks for your help, consumerist!

-Christopher

Way to stay strong, Chris. You'll be amazed what you can get by being firm and polite.

That dealership's new motto: If all else fails, we have excellent customer service. — BEN POPKEN

Chris took his car in for repairs and they rented him a loaner car. While driving it, the police pulled him over and could've written him a ticket for several things that were the dealership's fault: unlawful plate display, driving an unregistered vehicle, and there being no rental agreement in the car. They let him go without a ticket but wrote out on the back of a ticket (pictured) all the citations they could have issued.

The police wouldn't let him drive the car back so Chris had to wait for the dealership to come by and pick him up. The dealership dudes were very apologetic and hooked him up with a new rental, and a slice of pizza, but Chris feels he should get more for all the hassle he endured.

We do too. The dealership manager should call and apologize and should knock off the price of one of Chris' repairs, say throw in the tire balancing for free.

Resolving customer service issues like this takes two ingredients:
1) an apology from a supervisor and
2) a material gesture of apology (i.e., something of monetary value to the business (no, the pizza doesn't count))

Chris' letter, inside...

Chris writes:

I took my 03 Corolla in for repairs because it was shaking intermittently at high speeds. I took it back to the dealership where I purchased it in November 2006. I've only driven 2700 miles in that time, and the car is still under the factory warranty, and the 3 year / 36,000 mile warranty I purchased. Part of the repair cost was covered by the warranty, part of it was not (calipers broke - covered, rotors and pads had to be replaced as a result of broken calipers - not covered).

They gave me a rental, covered by my warranty, a new Prius. I drove it to work from the dealership. On the way home from work I was pulled over by the police. The registration sticker was out of date, the plate was improperly displayed, and the plate didn't match the VIN (discovered after they pulled me over). The police were very friendly and told me that the dealership had really screwed me over, and that I definitely couldn't drive this another inch. The dealership hadn't given me a rental agreement, and I had assumed it was in the glove compartment (as it had been before when they gave me a vehicle after my initial purchase while they did minor repairs I negotiated during the buying process) - it wasn't.

I gave the police the business card for the dealership and they arranged for the dealership to drive out and pick up the car, and give me a new rental. The office wrote up all the citations he could have issued on a blank parking ticket, which he told me to show the dealership. I have attached a picture of it, the text reads:
1372-3 117.50 - Unlawful Plate Display 1301-A Court Unregistered Vehicle
6308-A 117.50
Police Investigation No Rental Agreement
Tow Charge $135.00

Only his manners saved him and dealership fines.

The officer said the unregistered vehicle charge could carry a fine of up to $1000. The officers left to go on another call and told me not to move the vehicle.

I remained there for another twenty minutes, for a total of about an hour by the side of the road, before the dealership vehicle showed up. However, instead of another rental the had just driven up in one of the dealership branded lot vehicles. I had to return to the dealership with one, while the other drove the Prius (against my polite recommendation not to). I asked why they couldn't have brought a new rental and a rental agreement, they said I had to do it at the dealership.

Once I arrived they were apologetic and attempted to rent me another vehicle as quickly as possible. I said I didn't want to sign an agreement until they told me what they could do to make this right, since I had been inconvenienced by their mistakes, and I had saved them from getting a bunch of citations and fines.

I spoke with a couple of the guys there, and unfortunately neither of them were in a position of power (the manager of the service center wasn't there) to do anything, but they were both polite and empathetic, promising to explain the situation to the manager the next day and "go to bat for you". I accepted this (and a slice of pizza since I was starving, and they were nice enough to offer), and signed the rental agreement and went home, arriving just over two hours from when I was pulled over.

All that happened yesterday. Today I haven't heard from them yet. I am supposed to come tomorrow morning to pick up my car and turn in the rental. My repair bill is going to be $609.95 (Deductible on calipers - $50, New Rotors & Pads - $395.00, Brake Flush - $95, Rotate/Balance Tires - $69.95). They told me that everything but the rotate/balance is really required for the repair, and they recommended the rotate/balance.

I am pretty mad and frustrated with the experience, but other than this, I have had very positive experiences with the dealership. What is a fair resolution? What should I ask for if they don't volunteer anything? Would it be useful to contact Toyota Corporate at any point?

Oh, and don't bother contacting corporate. They rarely give a damn what their dealerships do. — BEN POPKEN

At the heart of it all is the "4-square," a sheet of paper (sample above) divided into four boxes: your trade value, the purchase price, down payment, and monthly payment. This is supposed to help you and the dealership come to an agreement, but as you'll see, it's really more akin to three-card monte dealer's deck of cards. Many, but not all, dealerships use this tool.

Here's 5 tips to get you started, and then a very detailed breakdown of how the dealership manipulates buyers with the four-square.

1) GET YOUR FINANCING THROUGH THE CREDIT UNION BEFORE YOU EVEN STEP ON THE LOT.

Once a car salesman knows you don't need financing, they're more willing to be forward with you and knows they don't have to work on the payments with you, because it won't help. We'll still try to beat whatever APR you're getting at the bank and offer you payment deals, but forget them. You've got it worked out, and only need to know the price - bringing us to the next point.

2) DON'T HAGGLE OVER ANYTHING BUT THE PRICE.

This seems obvious to most of the readers of The Consumerist, but most people miss this - especially if they're getting dealer financing.

3) DO YOUR HOMEWORK.

Know what the MSRP of the car is, know what your trade is worth. (Here's a hint: take the NADA and subtract about $2K - used cars are appraised by books that aren't published to the public, so it's not blue book or NADA value. It's called "black book" value; "black books" are published weekly by companies such as Manhiem Auto Auctions (http://www.manheim.com/), and these show the going price at the auction, that week, for your car. Basically, wholesale cost.)

4) LET THEM KNOW THAT YOU KNOW WHAT THEY ARE DOING.

If you read this article, you are already ahead of 99.9% of the people walking in. They'll cut most of the bullshit with you if they know that you're not going to fall for it.

5) UNDERSTAND THAT YOU ARE NOT GOING TO PAY COST FOR THE CAR, AND THE AMOUNT YOU PAY OVER COST WILL BE MORE THAN YOU THINK.

6) HERE'S HOW THE FOUR-SQUARE WORKS:

The "worksheet" (or four-square, as it's called) is the first thing a person will see when they sit down to negotiate a car's price. This sheet is used both in used and new car sales. When the interested party sits down, they've already driven the car, and have talked to the salesman about what they're looking for. The salesman has had the trade evaluated, if there is one, and has gotten the customers something to drink to take the edge off.

After sitting everyone down, the salesperson starts filing out the four-square. A blank one looks something like this:

The salesman will only put down the make, model, VIN and customers information (not pictured). Then, the salesman will have the customer initial the part that says "I will buy today if numbers are agreeable to both parties." If there's any resistance (which normally there isn't), the salesman simply says that its to make sure that the customer really is ready to drive the car off the lot today - IF they can get the numbers right. I never had anyone not sign the form who was actually willing to buy the car today. By doing this, you have shown your commitment to the manager in the tower (tower: back room, usually behind glass, where the salesman goes to confer with his manager.)

(A note about the tower: This is where the deal actually takes place. The salesman you are dealing with is NOT who you are negotiating with - the sales manager, who sits behind a desk (and is usually one of the scummiest people you'll ever meet) is who's actually going to be haggling with you. This will not happen in front of you, nor will you see what is actually happening. It's a bit of theatre, this part.)

The salesman will then take the paper up to the tower, and when he returns, you'll see something like this:

The salesman will start, very matter-of-fact, going over the numbers with you. First, he'll start with the value of your trade.

The value of your trade, as listed, is $3000. You, expecting at least 5k for your beater, are unhappy with the number. That's fine, the salesman says. We'll get to that in a moment. He then goes on, very quickly, to just state the price of the car. Salespeople are instructed to move over these parts of the sheet VERY QUICKLY, as you'll see in a moment.

Next, he arrives at the down payment square, which is easily double what you'd hoped to put down today on the nice new Prius you now want very badly. Lastly, he arrives at the monthly payment. "That payment is outrageous! I can't afford that!" is what you're probably thinking. All in all, these are pretty crap numbers from what you see.

THESE NUMBERS ARE MEANT TO INSULT YOU AND PUT YOU ON THE DEFENSIVE, ESPECIALLY THE LAST TWO. The idea here is that, unless you're really observant, to get you less concerned about the overall price of the car and what your trade is worth (we'll go into trade manipulation in a moment), and get you to the payment plans offered at the bottom. The salesman, who knows you are steamed, will keep on acting like nothing is wrong, and hand you a pen to sign by the X. This is done for two reasons - 1)You might be the biggest, dumbest sucker we've had today and actually agree to these terms (happened twice the three months I did this), or 2) You look like the aggressor when you say you won't sign.

When you decide state that those numbers don't work for you, the salesman will ask which numbers you have a problem with. Most people will go straight to the down payment, as that's usually the part that most people gag on, followed closely by the trade in value. The salesman will then either talk about your trade (and proceed to downplay the car as much as they can - that's usually pretty easy), or will go directly to the down payment. Very discreetly, the salesman will fold the four square so that the only figures you see when you're talking are the down payment and monthly payment.

The salesman will then say "Well, what were you thinking about putting down today on the car?" You'll respond something like 1500, 1000 or even less if you're in a bind and NEED the car but are broke. The salesman will nod, and act as if he's empathetic with your plight - those bastards up in the tower *are* asking too much from you! He'll then cross out the down payment number and write in the number you're looking for.

At this point, the salesman will say something to the effect of, "Well, we may be able to get that down payment done for you. But, as I'm sure you know, the less you put down today, the more you'll have to pay off on the car - so this payment is likely to go up. What were you looking to pay on the car for payments?" You respond, "I didn't plan on paying that much, must less more!" The salesman will pause, hoping that his last line will sink in a bit and you'll either acquiesce to the current number or offer something higher.

If you don't, and insist that you were only planning on paying $300 a month for the car, the salesman will say, "I don't think I can do this, I really don't. But, I tell you what; my manager is crazy today and hasn't sold that many cars - he's really under the gun from upper management to get some cars out today, and he might just do this. Tell you what - if I can get these numbers, would you buy the car right now?" You say, "Well, sure, I guess." The salesman will say, "Okay, can you write me a check for the down payment so I can take it up there? They're not usually willing to turn down someone if I show up with cash in hand!" (Real reason? People are really unwilling, for some reason, to ask for a check back later if negotiations start to break down.)

Most people, at this point, will write the check - if the salesman is good enough with the snow job, people will honestly think that they're getting a good deal and that they need to do everything they can to get the manager to cave and sell them the car for next to nothing. The salesman will also get you to sign the form, by the X, saying that you're agreeing to the new numbers, not the old. He'll then put on his "wish me luck" face, and trudge up to the tower to haggle with his boss, the mean ol' manager.

(A note about the X: There's nothing legally binding here, BTW. You could sign your SSN, your blood type, and your name all on that line - but there's nothing binding on either party to make that happen. It's a precursor to the real deal with all the lovely paperwork in finance...but not the actual deal. However, the dealerships make you do this so you'll think its official and leverage yourself into thinking you may have just bought a car.)

The salesman will return, with a huge grin on his face, and something like this:

He'll say, "Wow! He really is in a tough spot! He was willing to let this go for the down payment you wanted! But, like I was saying, he couldn't really hit the payment you were looking for because he went down so far on the down payment, and he can let it go for this. (Motions towards new payment offer.) Would this work for you?" You will sit and look at the number, and wish you weren't buying a car today but instead on vacation. You will either agree, and we'll enter the final turn, or you'll go another couple of rounds with them until they either meet you somewhere in the middle, or you start to walk out.

(Note about "walking out." This doesn't work if your offer is, truly, unrealistic. You need to do your homework before going in - this includes finding out how long the car has been on the lot [just driving by and seeing it for a couple of weeks is good ammo], what the going rate is for those cars, and above all else, securing your financing before you get there, so you're more worried about the ACTUAL PRICE OF THE CAR instead of these bullshit terms.)

Now, lets say you've got a problem with the trade price, as well as the other figures (other than price.) The salesman (and manager) will probably agree to whatever price you want for your trade, within reason. So, assume the sticking point is that you want $5,000 for your trade - that's fine, we'll just say it's going to be bought for $5000. We simply move around the price of the car to $2,000 more, and you're in the clear. You don't notice, we don't say anything, and you feel happy. This is the way that dealerships do the whole "push pull or drag" sales where they'll give you $5,000 for an engine block.

So, at this point, we'll assume that you've gotten everything square and you're ready to close the deal. Sometimes, if the manager feels especially nasty (or has gone a few rounds with you via the worksheet), they'll come out of the tower and say "Folks, I'm (Douchey McDouchebag), the sales manager here. Congratulations! You've just bought a car! We were able to get the payments to $310 - I know you wanted $300, but that was the best we could do. That's close enough, right?" They'll nod their head (another psychological trick to get you to agree), and almost every time the person says "Yea, that's fine!" The problem is, they didn't realize that a $10 payment bump over a 5-year loan nets an extra $1k in profit for the dealership. It's called "the $10 (or $15, or $20) close", and I only saw it fail when a person was really, really exasperated with us. The deal ends, and you wake up in a year realizing that, somehow, you're $6,000 upside down on your car, while the dealership is laughing all the way to the bank.

So, those are the major pitfalls associated with the four-square; it looks really unassuming on its face, but its designed to make you pay more, and not realize what's going on. The manager, during negotiations, will write in BIG BIG letters, will turn over the sheet if he needs room, and will write over other things in order to make it as confusing and hard to deal with as possible in attempts to wear you down and make you sign.

The saying we used to have around the lot was "It's like the Dallas Cowboys playing a Pee-wee Football team." The average car salesman does this dance 4 times a day - you do it once every 3-5 years. They are better, and they will get you on some level. However, by doing stuff like this, you can control how much it happens.

Here's what a finished four-square might look like:

(Photo by Scott Jacobs, courtesy Edmunds)

What are your four-square horror stories? How did you "beat the box?" — BEN POPKEN

You are handed a slip of paper and told to mark your right thumbprint in a box. The paper says clearly that it's a request, for your protection, and to prevent your identity theft.

When you politely decline, the dealership refuses to sell you the car.

This is precisely what happened to me today when I tried to purchase a new X3 at the South Bay BMW dealer in Torrance, California.

Let me restate: In order to buy a car, with cash, you must authorize the release of your official DMV-recorded thumbprint to the dealership. This is not a law, this is a "dealership policy."

Brave New Car Dealer: fingerprints required to buy a car? [lornamatic via BoingBoing] (Thanks, Jason!)

Many of the allegations center around Huling Brothers manager, Adrian Dillard, with an alleged history of high-pressure sales tactics, and snorting painkillers with coworkers in the bathroom and off the dashboard of a company truck.

Sales records showed Huling Brothers taking, advantage of mentally deficient customers before Dillard came on. And one sale was structured to help a drug dealer launder funds.

Most alarming, Huling Brothers apparently enjoys a very high reputation in its area. Imagine what's going on at dealerships even less sterling.... — BEN POPKEN

How drugs and greed tainted auto dealership [The Seattle Times] (Thanks to Karl!)
Previously: Car Dealership Breaks Into Customer's Home, Steals $70,000

The invoice that most dealers are happy to show you represents a theoretical price the manufacturer would charge the dealer if the dealership sold just that one vehicle. Of course most dealers sell hundreds or thousands of vehicles a year and manufacturers offer all manner of incentives to encourage dealers to sell even more.

It depends on the vehicle — cars and trucks that are in demand will always carry a lot of dealer profit, while slow-selling vehicles usually come with deep factory discounts and dealer incentives. But as a general rule, you've gotten a good deal if you're final number is within $250 or so of the publicly available invoice price.

Invoice price on any car is a mythical figure [Bankrate]