Tricks to watch out for when shopping for a car

We know. Not all car dealers are unscrupulous, and not all are going to take you to the cleaners.

Among all the “Honest Bobs” out there walking the lots, many really are trustworthy.

But there is a simple reason so many people dread buying a new car: the potential for rip-off is astronomical, and common practices over the years have often justified consumers’ fears.

If you catch a whiff of any of the scams below, be on the alert.

Juggling the Four-Square: This isn’t really a trick, but awareness here is important for a buyer.

When you sit down to negotiate, the salesman will pull out a “four-square” worksheet on which to work out the terms of the deal.

In the four quadrants of the sheet the salesman will record purchase price, down payment, monthly payments, and trade-in value.

He will fill in the sheet as you talk, working the deal like a shell game—if he thinks you are preoccupied with getting a fair deal on your trade in, he might give you a good price for that and then nudge your new-car purchase price north.

Take it slow, focus on one item at a time, and be sure you are comfortable with each individual aspect of your purchase.

Profiting from rebates: Rebates bring a lot of customers into a showroom, but the discounts can hide several tricks dealers employ to suck a few bucks from a buyer.

First, don’t let a salesman tell you that you are getting a good deal because of a rebate; rebates come from the manufacturer and usually apply regardless of the price you negotiate with the individual dealer.

Negotiate as if there are no rebates. Second, make sure the rebates are deducted from the purchase price.

If you allow the dealer to mail you a check after the sale, you end up paying taxes and interest on the rebate. If there’s an incentive on a car today, odds are there will be incentives on it again.

Inflating payments: Talking monthly payments at the car dealership can be as dangerous as saying “bomb” at the airport. A salesman asks how much you are willing to pay each month, and you throw out a number.

He asks how much more you could afford—just getting a feel for you. You tack on another 50 bucks.