How To Read A Four Square Form
A standard finance calculator is called a Four Square form. It also represents a dangerous opportunity for the car salesman to mess with the numbers to their advantage, not yours. Be cautious or you'll end up paying the price.
Step 1: You will need:
- A Valid Driver's License
- Funds For A Down Payment
- Financing From A Bank or Credit Lender
- Your Credit Score
Step 2: Side Step The Credit Application
If you are bringing your own financing to the table, you will not need to fill out a credit application.
Step 3: Beware Of The Better Deal
Dealers want you to fill out the credit application so that they may switch you out of your financing by offering you a better rate. This is almost never the case because dealerships are allowed to add a couple of percentage points to the deal.
Step 4: Know The Score
Always know your credit score so that you'll know what the interest rate on the purchase will be.
Step 5: Higher Learning
If you haven't secured financing from your bank your credit union, you'll have to arrange financing through the dealership. Dealership financing offices are allowed to add percentage points to your interest rate, but never more than five percent.
Step 6: Trust The Lender
If the dealership won't accept the check from your online lender, you should walk away from the deal.
Step 7: Cash Is King
To avoid the four-square form all together, pay in cash, but don't let the salesman know you are paying in cash until AFTER you have agreed on the total transaction price of the vehicle.