Before you go to buy a car at a dealership near Denver, CO, it's good to know what the process will look like and what you can expect from your everyday car salesman. Most car salesmen are good people just doing their job to help you find the best vehicle option for you – but every now and then, you can come across a car salesman that just wants to sell you a car, even if it’s a bad deal for you. After all, there's a reason "car salesman" has the reputation it does (and a good reason Bob Penkhus is trying to change that!).
5 Ways to Know If Your Colorado Springs, CO Car Dealer is Ripping You Off
1. Asking far above the actual value of the car.
Before you buy a car, it's good to do your research to understand the value of the car you are wanting to purchase. Having a good understanding of the market will help you when going to negotiate a deal when buying a car. Once you find a car you like, educate yourself by searching bobpenkhus.com in Colorado Springs, CO, for that specific car model to understand the average price the car is going for online. From there, you will be able to assess if a car is overpriced on the car lot and avoid getting a bad deal. If the vehicle is overpriced, you can make an offer at a lower or more reasonable price than what the dealership has it listed for and confidently negotiate a deal that works for both of you.
2. Focusing on the payment term, instead of the price.
If a car dealer can get you to focus more on your monthly payment than the total cost of the vehicle, then they could be able to “pack” more into a deal and make more profit for themselves. They do this by stretching the loan amount out so you are paying more over time. While the car dealer wants you to focus on the monthly payment, as a car buyer, you need to focus on the total car price and choose a monthly payment plan that works best for you within your car budget. Don’t let a car dealer use soft language or strong-arm tactics to distract you. Get the price you want and avoid overpaying through “clever” financing by understanding your car budget before you buy.
3. Avoiding taxes, titles, and “documentary fees.”
A good car dealer will have their fees for the new car purchase clearly outlined so the buyer can visibly see and understand what they are paying for. Some bad car dealers bury hidden fees in paperwork so buyers don't see them or really know what they are paying for. When buying a new car, it's important to ask your car dealer about all taxes, title, and the “documentary fees” so you know what you are being charged for. A “documentary fee,” as many dealers call it, is for processing documents and performing services relating to the closing of the sale, as well as taxes, license, and title fees. In most states, there are limits as to how much a car dealer can charge you in these fees. So, before going to buy a car, do your homework by studying what Colorado limit is in taxes, titles, and documentary fees so you don’t get charged over that amount.
4. Extended warranties that sound too good to be true.
Many new car warranties are a great deal and beneficial to the buyer – but many car salesmen will use the word "extended warranty" to sell a car that is simply not worth getting. Depending on your make and model, many cars already have warranties given by their manufacturer. An "extended warranty" offered by most car dealers only takes place after the factory warranty runs out. But these are usually backed by a dealer’s third-party underwriter – and they are often marked up. So, don’t get an unnecessary "extended warranty" from your dealer without doing your homework first.
5. Feeling rushed to purchase.
You never want to feel rushed when making a decision to buy a new car. Sometimes a salesperson will tell you that someone else is interested in the car you want to purchase to try to get you to buy faster. But just because someone else is interested in the car doesn't mean they want to buy it and it also doesn’t mean you need to buy it impulsively. There are plenty of cars on the market today, but there are not a lot of great car deals – so make sure your car dealer is working for you and not working you over by educating yourself on vehicle value and taking your time.
At Bob Penkhus, we're in the business of changing the bad reputation many car salesmen and dealerships have – because we don't just want to sell you one car, we want to be your trusted car dealership for life. Contact us or stop in to see one of our knowledgeable (and trustworthy) car experts today. We have an incredible lineup of new and used vehicles from Volvo, Mazda, Volkswagen, and more. We can't wait to help you find the car you've been searching for!
- Your friends at Bob Penkhus
