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Decoding the dealers pricing scheme

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  #1  
Old 03-18-2012 | 09:30 AM
ltl lifer's Avatar
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Default Decoding the dealers pricing scheme

All of us have seen pricing on used cars of all types that will end in 88 (i.e. $15,788). There are other pricing schemes that are used to price used cars so that the salesman/sales manager knows just by looking at the posted price that the price has $1500, $2000, etc. wiggle room in the price.

Is there anyone out there that knows what this scheme is and what the code is for different pricing? Joe Blow walks on the lot and sees $15,788 and may think he is getting a deal when he gets it for $15,200 when, in fact, he could have gotten the car for $14,000. There are other numbers that tell different stories but I used the above for an example.

I hope I have made this understandable as I know that this pricing game exists.

A current or former car salesman's input on this would be most helpful.
 
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Old 03-21-2012 | 02:02 AM
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Hi Member and thank you for your post..
 
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Old 03-25-2012 | 10:47 PM
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i know that dealers have this thing called 4 square. i'm not totally clear on how it works, but i know thats the basis for their negotiation
 
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Old 03-25-2012 | 11:44 PM
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Interesting...I would love to know how they do this if someone knows the secret!
 
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Old 03-26-2012 | 05:52 AM
ltl lifer's Avatar
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Originally Posted by briando
i know that dealers have this thing called 4 square. i'm not totally clear on how it works, but i know thats the basis for their negotiation
Here is an excellent article on how the 4 square works Dealerships Rip You Off With The "Four-Square," Here's How To Beat It - The Consumerist I understand this tactic and can spot the dealers intent to try it from a mile away. They start that mess and I just have to shut it down immediately.....Let's talk price of the car, period.

What I was referring to is what you actually see on a car lot. As you walk amongst the acres of cars you see different prices on the window, on the sticker, etc. and each one of the prices ends in a number that is code for how much they can afford to come off of the price and still make a buck. The last digits ending in 88 (i.e. $21,488) means one thing whereas 95 (i.e. $15,995) means something else. It is all internal code and someone who has worked in the business is bound to know what this is.
 
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