Decoding the "$99 Down, $99 a Month" Mitsubishi Offer: What You Need to Know
The alluring promise of a Mitsubishi vehicle for just $99 down and $99 a month often pops up in online ads and dealerships. While incredibly tempting, this type of financing deal requires careful scrutiny. It's crucial to understand what this seemingly affordable offer truly entails before signing on the dotted line. This article will dissect the specifics of these promotions, explore potential pitfalls, and equip you with the knowledge to make an informed decision.
What does "$99 down, $99 a month" actually mean?
This advertising tactic is primarily a marketing ploy designed to attract potential buyers. The extremely low down payment and monthly payments are almost always achieved through a combination of factors, none of which are necessarily indicative of a truly affordable car purchase. These factors often include:
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Long Loan Terms: To keep the monthly payment low, the loan term is drastically extended, often to 72, 84, or even 96 months. This significantly increases the total interest paid over the life of the loan, potentially resulting in paying far more than the car's actual value.
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High Interest Rates: Subprime borrowers, those with less-than-perfect credit, often face higher interest rates. While the monthly payment might seem attractive, the cumulative interest charges can quickly inflate the overall cost.
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High APR: The annual percentage rate (APR) is rarely advertised prominently alongside the monthly payment. Understanding the APR is critical, as it reveals the true cost of borrowing.
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Limited Vehicle Selection: These deals usually apply to older model vehicles or models with lower resale value. While you're getting a low monthly payment, you may be compromising on the car's quality, features, and longevity.
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Add-on fees: Often, additional fees and charges are added to the purchase price, negating some of the apparent savings. Be sure to read the contract carefully.
What are the potential downsides of these deals?
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Significant long-term cost: The extended loan term and high interest rates mean you'll pay significantly more for the vehicle in the long run.
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Negative impact on credit score: Missed payments, even one, can severely damage your credit score.
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Difficulty refinancing: Because these loans are often structured with poor terms, refinancing to a more favorable loan might be challenging.
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Negative equity: You might find yourself owing more on the car than it's worth, especially if the car depreciates quickly.
What should I look for when considering a "low-payment" car deal?
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Read the fine print: Don't focus solely on the monthly payment. Carefully review the contract and calculate the total cost of the loan, including interest and all fees.
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Compare offers: Shop around at different dealerships and compare financing options.
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Check your credit score: Understanding your credit score will give you a realistic expectation of the interest rates you're likely to be offered.
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Consider the vehicle's value: Research the fair market value of the car before you agree to purchase it.
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Negotiate: Don't be afraid to negotiate the price of the car and the terms of the financing.
Can I really get a Mitsubishi for $99 down and $99 a month?
Technically, yes, it's possible to find a deal that advertises those numbers. However, it's crucial to understand the often-hidden costs associated with this type of financing. The extremely low monthly payment usually comes at the expense of a substantially higher total cost and potential risks to your financial stability. Always prioritize careful consideration over alluring advertising. You are better off finding a dealer who will work with you to get a loan that is appropriate for your financial circumstances and does not leave you with unnecessary financial burdens.
How can I find a better deal on a Mitsubishi?
Focus on finding a vehicle that fits your budget and needs. Shop around at several dealerships to compare prices and financing options. Secure pre-approval for financing from a bank or credit union before heading to the dealership, giving you stronger negotiating power. Remember, a lower monthly payment isn't always the best deal. Calculate the total cost of ownership over the life of the loan to make a truly informed decision.
