The enticing "Mitsubishi $99 down, $99 a month" advertisement often catches the eye of car buyers. However, this seemingly straightforward offer requires careful examination. Understanding the fine print is crucial to avoiding unexpected costs and ensuring you're making a financially sound decision. This comprehensive guide will break down what this type of financing entails, address common questions, and help you navigate the process of purchasing a Mitsubishi vehicle.
What Does "$99 Down, $99 a Month" Actually Mean?
The "$99 down, $99 a month" offer is typically a promotional financing option offered by Mitsubishi dealerships or affiliated lenders. It's important to understand that this is rarely a true representation of the total cost of the vehicle. Instead, it's a marketing tactic designed to attract customers with low initial payments. The low monthly payments are usually achieved through:
- A long loan term: To keep the monthly payment low, the loan term is often extended to 72, 84, or even more months. This significantly increases the total interest paid over the life of the loan.
- Higher interest rates: Longer loan terms often come with higher interest rates, further increasing the overall cost.
- Higher purchase price: The advertised price might not reflect the actual market value of the vehicle. Dealers might add fees or mark up the price to compensate for the low monthly payment.
What are the hidden costs involved?
While the $99 down payment and $99 monthly payment are prominently displayed, several hidden costs can significantly inflate the overall price. These can include:
- Interest: As mentioned above, the extended loan term and possibly higher interest rates will result in substantial interest charges over the life of the loan.
- Fees: Expect various fees, such as dealer fees, document preparation fees, and possibly others, which can add hundreds or even thousands of dollars to the total cost.
- Taxes and registration: These are additional costs that are not included in the advertised payment.
How can I find a better deal?
The key to finding a good deal on a Mitsubishi is to be informed and prepared. Here's what you can do:
- Research: Compare prices and financing options from different dealerships before you commit to a purchase. Don't hesitate to negotiate.
- Check your credit score: Your credit score plays a significant role in determining the interest rate you will qualify for. Improving your credit score before applying for financing can lead to lower monthly payments and a lower overall cost.
- Read the fine print: Before signing any documents, carefully review all the terms and conditions of the financing agreement. Understand the total amount you will pay, including interest and fees.
- Shop around for financing: Don't rely solely on the financing offered by the dealership. Compare rates from banks, credit unions, and online lenders. You might find a better deal elsewhere.
- Consider a shorter loan term: While a shorter loan term means higher monthly payments, it will significantly reduce the total interest paid over the life of the loan.
Is "$99 down, $99 a month" a good deal for everyone?
No, "$99 down, $99 a month" is not necessarily a good deal for everyone. It might be appealing for those seeking a low initial outlay, but the extended loan term and resulting high interest payments can make it more expensive in the long run. It's essential to weigh the long-term financial implications before making a decision.
What if I have bad credit? Will I qualify?
Even with bad credit, you might still qualify for a loan, but the interest rate will likely be higher, leading to increased costs. It's essential to be upfront about your credit history and explore options with lenders who specialize in working with borrowers who have less-than-perfect credit.
What other Mitsubishi financing options are available?
Mitsubishi dealerships typically offer a range of financing options beyond the promotional "$99 down, $99 a month" deals. These may include options with lower interest rates or shorter loan terms. It’s always recommended to explore all available choices to find the most suitable option for your financial circumstances.
By carefully considering all aspects of the financing offer and conducting thorough research, you can make an informed decision about purchasing a Mitsubishi vehicle without falling prey to misleading marketing tactics. Remember, the lowest monthly payment doesn't always equate to the best overall deal.
