 Dear Terry,
I am a single woman, although I had my male cousin with me when I went car shopping. I think that the salesmen saw me coming. I haven't signed the papers yet, but I need to know some things. They let me have the car for a week to try it out. It's a 2007 Kia Rio LX. They want me to pay $345 a month with $1,350 down. I think that's high. Can you help me a little? Is that the right price? And what questions should I ask?
--
Andrea
 Dear Andrea,
You haven't really provided enough information for me to say whether you are getting a good deal. But here are the basic questions you or any other buyer should ask and have answered clearly before signing any car deal:
- What's the purchase price?
- What's the interest rate on the car loan?
- How long does the loan run?
- Is there any penalty for early repayment?
- Has the dealer added any additional things to the deal, like an extended warranty or insurance?
Lastly, never, ever drive off in a new car until you've completed the deal. Your liability for the car is huge and it puts you at a decided disadvantage to then negotiate price. Regarding the price on the Kia Rio LX,
Edmunds.com says a good deal on a model with automatic transmission and no other options would be about $13,000, including a $500 factory rebate. Again, you haven't provided enough detail, but if your deal was to pay $345 a month for five years at 8 percent interest, the loan amount would be $17,015. And if you paid $1,350 down that means you would have paid $18,365 for the car. Run from that dealer as fast as you can.
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