Decoding the "Mitsubishi $99 Down, $99 a Month" Deal: What You Need to Know
The alluring promise of a Mitsubishi vehicle for just $99 down and $99 a month often pops up in advertisements. While this sounds incredibly attractive, understanding the fine print is crucial before you sign on the dotted line. This seemingly straightforward offer can mask complexities that could lead to unexpected expenses and long-term financial commitments. Let's dissect this deal and explore what you need to know before considering it.
What does "$99 down, $99 a month" actually mean?
This enticing advertising tactic frequently highlights the low initial payment and monthly installment, effectively downplaying the overall cost and the length of the financing agreement. In reality, the "$99 down, $99 a month" offer usually applies to very specific models, often older vehicles or those with high mileage, and typically involves a lengthy loan term (potentially 72, 84, or even longer months). The low monthly payment comes at the cost of significantly higher total interest paid over the life of the loan.
What are the hidden costs?
While the advertised price focuses on the down payment and monthly installments, several additional costs can significantly increase the total price you pay:
- Interest Rates: The low monthly payment is often achieved through a high interest rate. This means you'll be paying considerably more in interest over the loan's duration.
- Taxes and Fees: These costs aren't usually included in the advertised price and can add hundreds or even thousands of dollars to the overall cost. This includes title and registration fees, government taxes, and dealer fees.
- Extended Warranties: Dealers often aggressively push extended warranties, adding to the monthly payment and total cost. Carefully consider whether the warranty is worth the added expense.
- Optional Add-ons: Similar to extended warranties, additional add-ons such as paint protection, window tinting, or fabric protection can inflate the final price.
Is this deal really worth it?
The attractiveness of a "$99 down, $99 a month" deal should be weighed against the potential downsides. While the low monthly payment seems manageable, the extended loan term and high interest rate can lead to significant long-term debt. It's important to consider the total cost of the vehicle, including all fees and interest, and compare it to other financing options.
What are the alternatives?
Before committing to this type of financing, explore alternative options:
- Shop around for better interest rates: Comparing loan offers from different lenders can significantly reduce the overall cost of your vehicle.
- Consider a shorter loan term: While monthly payments will be higher, a shorter loan term reduces the total interest paid over the life of the loan.
- Save up for a larger down payment: A larger down payment can significantly reduce the loan amount and, consequently, the monthly payments and total interest paid.
- Explore buying a used car from a private seller: You may find a better deal by buying a used car directly from a private seller rather than a dealership.
How can I avoid getting scammed?
Be wary of deals that seem too good to be true. Thoroughly read all contracts before signing and clarify any points you don't understand. Don't feel pressured into making a quick decision, and take your time to research different options. Do your due diligence on the dealership and ensure they are reputable.
In conclusion, while the "$99 down, $99 a month" Mitsubishi deal might seem appealing, it's crucial to thoroughly investigate the total cost and carefully consider the long-term financial implications before committing. Understanding the hidden costs and exploring alternative financing options can help you make an informed decision that aligns with your financial goals.
