If I am putting down $27,000, and I was told that my car payments would be around $445 a month for a total of 60 months? What interest rate did they use without telling me what it was? Plus my credit was not the best, but so-so. Am I being ripped-off?
It’s hard to say what your payment should be since it depends on the asking price, fees, taxes and interest rate; on the Expedition EL, the trim level MSRP ranges from $34,870 and tops out at $46,240.
However, it’s recommended that you negotiate the vehicle’s asking price instead of haggling a lower monthly payment. In the Cars.com Buying Advice article, “What to Expect Once Negotiations Start” senior editor Joe Wiesenfelder explains:
“Most consumer advocates recommend that shoppers refuse to discuss monthly payments and instead focus on the sale price. Put off all questions about your other intentions by saying you don't know what you're going to do with your current car or whether or not you will finance — with the dealer or elsewhere — or pay cash. Answering those questions just complicates matters. The only thing that matters in your price negotiation is one thing: the price.”
At Cars.com, we have resources that give you an idea of what you should be paying, including invoice pricing, MSRP and Smart Target pricing, which you’ll find when you build a new car at Cars.com or use our side-by-side comparison tool.
It’s important to know your interest rate; it’s important information and shouldn’t be kept from you. For a benchmark, Bankrate.com lists the national average for a 60-month new-car loan as 6.46 percent. If you’re unhappy with your current interest rate, see the tips in the Financing Advice section about getting the best rate.
If you head back to the dealership, keep these incentives in mind: In your area, we’re seeing a $3,750 cash-back rebate on the 2008 Expedition EL, as well as zero-percent financing for qualified buyers.
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Nikki,
You're definitely being ripped off. If you had to finance $15k and pay $445/month for 60 months that's a 25.5% interest rate!