Decoding the "$99 Down, $99 a Month" Mitsubishi Deal: Is It Too Good to Be True?
The allure of a "$99 down, $99 a month" Mitsubishi deal is undeniable. It whispers promises of easy car ownership, making a new vehicle seem surprisingly affordable. However, before you rush to the dealership, it's crucial to understand the fine print and potential hidden costs. This enticing offer, often advertised for specific models or as a limited-time promotion, rarely reflects the true cost of car ownership. Let's dissect this deal and explore what you need to know before committing.
What does "$99 down, $99 a month" actually mean?
This advertising tactic is designed to grab attention. While the initial outlay of $99 seems incredibly low, it's typically just a down payment on a much larger loan. The $99 monthly payment is often a heavily subsidized rate, typically applied to a lengthy loan term (often 72 or even 84 months). This extended term significantly inflates the overall cost of the vehicle due to accumulated interest. The low monthly payment masks a much higher total price tag than one might initially perceive.
What are the hidden costs of this type of deal?
Several hidden costs can quickly negate the initial appeal of the "$99 down, $99 a month" offer. These can include:
- High interest rates: To make the low monthly payments possible, dealerships often charge significantly higher interest rates than those offered with a shorter loan term and larger down payment.
- Extended loan terms: Longer loan terms mean more interest paid over the life of the loan. This can increase the total cost by thousands of dollars.
- Additional fees: Expect additional fees such as dealer preparation fees, documentation fees, and other charges not initially advertised in the flashy promotional material. These fees add considerably to the final price.
- Higher mileage limits: Some low monthly payment deals come with restrictions on annual mileage. Exceeding this limit often incurs extra charges.
- Limited vehicle choices: These deals are typically applied to less popular models or older inventory that may be harder to sell otherwise.
What should I consider before signing?
Before signing any contract, carefully review all documents. Don't hesitate to ask questions and clarify any unclear points. Consider these key factors:
- Total cost of ownership: Calculate the total amount you'll pay over the life of the loan. Don't focus solely on the monthly payment.
- Interest rate: Compare interest rates offered by different lenders, including banks and credit unions. You might find more favorable financing options outside the dealership.
- Loan term: A shorter loan term will decrease the total interest paid but will increase your monthly payment. Weigh your priorities carefully.
- Vehicle value: Research the fair market value of the vehicle to ensure you're not overpaying.
Is there a better way to buy a Mitsubishi?
Absolutely! A more sensible approach involves:
- Shopping around: Compare offers from multiple dealerships and lenders.
- Larger down payment: A larger down payment reduces the loan amount, leading to lower interest payments.
- Shorter loan term: Though monthly payments will be higher, you’ll pay considerably less interest in the long run.
- Pre-approval for a loan: Getting pre-approved before visiting dealerships can give you a stronger negotiating position.
Can I still get a good deal on a Mitsubishi?
Yes! You can find attractive deals on Mitsubishi vehicles, but they may not be advertised as "$99 down, $99 a month." Focus on finding a vehicle that fits your budget and financial goals, and prioritize a fair price and reasonable financing terms. Don't let sensationalized marketing overshadow sound financial decision-making. Remember, responsible car buying involves careful research, comparing options, and understanding the complete cost of ownership, not just a low monthly payment.
