In this video I explain exactly how car dealerships rip you off. A lot of car dealerships implement the four square method, which is just a simple way to make you think that you're getting a deal.

Car dealerships are a very sophisticated network of stores that know how to separate you from your money. Not all dealerships rip you off, but the ones that use the four square method do.

Don't get ripped off on your next car purchase and watch this video until the end.

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Comments

    • Whitney Osei
      Whitney Osei

      That's what we did. We got our financing through Capital One Auto Navigator! So we walked in with our car selected, already knowing what our payments we gonna be.

      about 3 minutes ago
    • douglas walker
      douglas walker

      Only Poor and Idiots Put a car on credit and not pay cash. Wealthy people with no $ sense. Wealthy people and Smart middle class buy used Cars and do research what cars I have found few that can make it to 1 million miles on factory parts Taking really good care off it like a child (Sadly Americans are lazy don't take care of god dam thing they wait till it's to late.) I hate living in Idiot called Majority of American population

      about 15 minutes ago
    • douglas walker
      douglas walker

      Sadly my dad bought a 2005 F150 leriate And paid 6500$ later Learned car is worth 1500$ so why rip off from mullinax ford

      about 19 minutes ago
    • Benjamin Hobbs
      Benjamin Hobbs

      Great video. I sold my 2010 Crown Victoria Police Interceptor that I had for 3 years. I paid $3500 w/ 98k, I sold for $3100 w/ 130k. Once I sold that car, I walked in to a dealership with that cash, test drove a car. They wanted $3999, I told them all I have is $3,100, I let them know I can put the DMV fees on a credit card, but as far as the car price is concerned, all I have is the cash I brought. The car I bought is 4 years older than my other car, but the new car is in much better shape, and is super clean, condition is excellent. The new vehicle is a 2006 Ford Five Hundred SEL.

      Previous to that our other car was a 2006 Mazda MPV LX w/ 155k. I was going to private party sell it for $2,800. In the meantime my wife and I began looking for a bigger vehicle, an Expedition specifically. We went in telling the dealer we are not trading in. He had a 2007 Eddie Bauer Expedition, almost every feature on it, and everything works. Drove it to a Jiffy Lube and they had me take a look. No rust, no leak, could tell transmission had been rebuilt or replaced, everything underneath well maintained. The dealer was using it as his personal rig. He wanted $5000, and he offered me $1800 for the MPV. Mileage being high, and me bringing my own credit union for financing, I accepted, and took my credit unions warranty which covers power train m, 4x4 running gear, and 50% of electrical work. $1600 warranty. My payment with warranty is $97 a month.

      When we bought the MPV in 2012, we brought one of those capital one checks to the dealer. The dealer wanted $10,000 for it, It had 63k on it. We wanted to pay $9000. They were saying no they couldn’t do it, they thought the check would cover more, or we would have a down payment, or trade in. We didn’t. So after agreeing to $9500, they began doing the paperwork, well the terms of the check had restrictions about loan to vehicle value. So after them saying no, and the check being unable to cover $9500 based on value, we were prepared to leave, and they ended up dropping it so the check covered the vehicle. It was one of the best vehicles we owned. It never once broke down.

      about 1 hour ago
    • Hi From America
      Hi From America

      Also remember that a dealership is not going to give u a great deal on their car and give you a great deal on yours!

      about 1 hour ago
    • James Bailey
      James Bailey

      This guy really understands how the "quad" works. Give him 5 gold stars for his knowledge and honesty. He could probably sell moisturizer to a fish.

      about 2 hours ago
    • Marko - WhiteBoard Finance
      Marko - WhiteBoard Finance In reply to James Bailey

      Lmao 😂

      about 2 hours ago
    • James Last
      James Last

      I brought in a pos Lesabre for a trade in and was thinking they might offer me $500 bucks for it. To my surprise they didn't even want the car and told me to sell it myself! I got $800 for it and almost covered my down payment.

      about 2 hours ago
    • JeffsSlot ChannelNewsDrama
      JeffsSlot ChannelNewsDrama

      9:15 "You made the sdeaship over 1500: when it only $14.00 x 84 = $1,176.00?

      about 2 hours ago
    • Marko - WhiteBoard Finance
      Marko - WhiteBoard Finance In reply to JeffsSlot ChannelNewsDrama

      The numbers on the WhiteBoard have no math behind them. I was literally making them up as I went. What I was referencing is financial reserve. You may want to Google that phrase and you'll understand where the $1500 figure comes from. Thanks for watching.

      about 1 hour ago
    • JeffsSlot ChannelNewsDrama
      JeffsSlot ChannelNewsDrama

      8:15 you said you "Your an idiit" and you cant add $375 to $389 is $14.00 and can't muiltply $14.00 x 84 = $1,176.00 and you are in finance

      about 2 hours ago
    • Marko - WhiteBoard Finance
      Marko - WhiteBoard Finance In reply to JeffsSlot ChannelNewsDrama

      Lol these numbers have no math behind them. I literally made them up.

      about 1 hour ago
    • JeffsSlot ChannelNewsDrama
      JeffsSlot ChannelNewsDrama

      $375.00 to $389.00 = $14.00 x 84 = $1,176.00 not $1500.00

      about 2 hours ago
    • Marko - WhiteBoard Finance
      Marko - WhiteBoard Finance In reply to JeffsSlot ChannelNewsDrama

      google dealer reserve

      about 1 hour ago
    • Casey Thompson
      Casey Thompson

      I’d never heard of your channel but saw the description and subbed before I even got past the ad at the beginning! I’ve been buying cars for decades and am better at it than my husband! I will be showing my kids this. My 22 year old just bought his first car and asked me for advice. My youngest is thinking of buying one soon so I’ll have her watch this to prove to her when I tell her these things I’m not blowing smoke up her butt. Awesome video!

      about 2 hours ago
    • Declan Ohalloran
      Declan Ohalloran

      Alot of this is crap. Some of it is truthful there are some dealers that will try RIP you off. And additional products do have the most profitable along with finance how ever the bank charges interest to so instead of giving it a local business you give it to a bank yeah great and most times you can get better rates at the dealership if you ask for them. Just be smart people

      about 3 hours ago
    • Marko - WhiteBoard Finance
      Marko - WhiteBoard Finance In reply to Declan Ohalloran

      Credit Union = Local Business

      about 1 hour ago
    • Josh D
      Josh D

      is there anything in place that protects consumers from this rip off?

      about 4 hours ago
    • robt555
      robt555

      My opening comment is always "I'm buying a car today. The first time you jerk me around I'm walking out." If they're stupid enough to still try - I say "You're obviously more interested in jerking people off than selling cars. Let me try somewhere else who may actually want to sell a car today." I never fail to drive back to the dealership with the car I just bought somewhere else.

      These scum are fucking clueless lowlifes for the most part - functional sociopaths - meaning the more they screw over their fellow man the more they make and won't lose a second of sleep over it.

      Years ago, I actually had them try to refuse to give my keys back after offering me $800 when they were looking at my car as a trade. I promptly called the cops. Amazing how quick those keys get back in your hand.

      about 4 hours ago
    • Davina
      Davina

      What if it's the other way around, you have a $30,000 Kelly Blue Book suv ALL PAID FOR and want a downgrade of a suv to around $18,999? Do they hate to give the difference in a check to you?

      about 4 hours ago
    • Justin Lang
      Justin Lang

      Hes right, but I dont know many dealerships that still use this 4-square method anymore. It was far more effective before internet sales took the business over.

      about 5 hours ago
    • coda creator
      coda creator

      It's just math.

      about 6 hours ago
    • coda creator
      coda creator

      Most people have wanted to stay under $300 a month for the last 20 years (or more like 30) because wages flatlined then and while the cost of everything has gone up, wages haven't. We don't have the disposable income necessary to support auto dealers. Buy lightly used. Pay cash. They'll figure it out eventually.

      about 6 hours ago
    • StormyLines
      StormyLines

      1st step, DON’T WALK INTO A BIG DEALERSHIP. Go to a smaller dealership and get treated like a human being and not like a wallet.

      about 6 hours ago
    • Levi
      Levi

      Realizing I got hosed when I bought my truck last year

      about 6 hours ago
    • milky licker
      milky licker In reply to Levi

      Don't feel too bad... most people get hosed

      about 2 hours ago
    • Frank J. Mummolo
      Frank J. Mummolo

      Really helpful! Didn’t know some of this!

      about 6 hours ago
    • Jay Hall
      Jay Hall

      I like how people think all people think all car salesman are liers meanwhile its usually the other way around. He is right about new cars tho. I work at a Honda dealership and I can honestly tell 9/10 people come-in and steal a car. No one is making money in the car business, Its all volume. My best advice is if you want to buy a car. Let the salesperson know up-front what youre trying to accomplish that way it can be a quick and easy process. The sales person is probably getting paid only commission and people spend hours in dealerships because they choose too. A blue Accord doesnt drive differently from a red one, but lets drive them both.🤷🏾‍♂️

      about 7 hours ago
    • Gregory Daerr
      Gregory Daerr

      Yeah. Go in to buy a car with the attitude that you will walk if they cant work with you.

      Dont get emotionally invested in the vehicle.

      Also, stick with what you feel is a good trade in value for old vehicle if you have one to trade. (Look up trade in values or look at used car sale prices for your trade in before you go)

      Ask to see invoice they paid for car.

      I like to spend a lot of time test driving car. Make them invest time in the sale so when you say 'naw, sorry I wasted your time and get up to leave' ....they will have too much time invested to just have you walk without buying....usually.

      These guys are gonna want to do anything to close a sale after 2 hours of him-hawing and kicking tires and test driving.

      I like to test drive different vehicles and THEN TEST DRIVE THE CAR YOU REALLY WANT, LAST.

      Make it sound like your settling. 'Well I'd like the porch but I'll take the economical lower model instead'. Whatever that may be.

      If they try to charge for already installed extras ....tell em, ok just take it out. I'm not paying for an alarm or satellite radio service or whatever the new 'thing' is..... they dont want to remove, modify or ... ...touch that car at their expense at all .

      I just make em work for the sale, then hold closing the deal over their head until they work with you.

      If sales manager comes in, even better. He tries to convince you your requests are unreasonable.

      Just grab your car keys and bail.

      The salesman will be all over sales manager to help him close the deal that he just wasted 2 hrs or more to close.

      Still some of them wait till your in your car and staring it......then come up to you.


      Others - dont. They will let you leave. Fine, they didnt deserve your business anyway. Never go back.

      Keep in mind - they will ALL LET YOU WALK if your expectation is truly unreasonable. They have to make SOMETHING....just make sure you manage you OWN expectations by doing some research first and sanity check yourself that your parameters for buying are set reasonably.

      Bottom line. Dont let yourself or anyone your buying a car or say anything about how they like this.... or that this is what they want. Etc... go in like you could take it or leave it.

      If you have kids, leave them with someone - do not bring them. SalesHOLES WILL do things to use the kids attention span or unfiltered regurgitation of conversations you had about buying a car previously. Kids hear and comprehend more than you think.

      All I got. Good luck

      Good vid.

      about 7 hours ago
    • Bradley S.
      Bradley S.

      Very cool

      about 7 hours ago
    • Pablo Luque
      Pablo Luque

      Credit unions and banks aren’t always lower interest rates sometimes the manufacturer offers special financing rates

      about 8 hours ago
    • John Smithins
      John Smithins

      So, basically it comes down to this: ONLY negotiate the price of the car with the dealer, since that is the largest component of your total cost (obviously). As for trade-in, sell it private, you'll very likely get more money for it, meaning your net price (cost of new car - cost of old car) is going to be lower.



      Don't worry about down payment and monthly payments; rather, work with a separate entity (credit union, bank etc) on this. From what I understand, dealers charge an arm a leg to finance the car, at many basis points higher than their competitors. By working with, a bank, you're very likely going to be paying less for your loan in both total and monthly costs.


      Finally, and this is VERY important, if you're not financially/mathematically savvy, work with a friend or ask around for some help on how to make the best financial decision, then go from there. Nothing is more expensive than financial illiteracy....



      Working exclusively via dealership is the best way to get screwed over.

      about 8 hours ago
    • Airbus321Pilot
      Airbus321Pilot

      That was a great video, everything is spot on.

      about 8 hours ago
    • The Finder’s Keep
      The Finder’s Keep

      Fantastic video holy cow this needs to be everywhere

      about 8 hours ago
    • Brent Arnold
      Brent Arnold

      Yea my last car loan I got through USAA. It takes about 5 min. if you have good credit and my interest rate was 2.5%. Also you don't have to use all the amount they offer you if you don't want to.

      about 8 hours ago
    • boston12111
      boston12111

      There is a lot of information on the net! Most deals are made before visiting a dealership. The scams are the delivery and prep fees. These items are BS and are all profit the dealer keeps without paying anyone. They are not allowed on any true employee deal. I bought my last car on line and they delivered it to my house.

      about 8 hours ago