Decoding the "Mitsubishi $99 Down, $99 a Month" Offer: What You Need to Know
The alluring "Mitsubishi $99 down, $99 a month" advertisement often pops up, promising seemingly affordable car ownership. However, this attractive price point usually hides several crucial details that potential buyers need to understand before signing on the dotted line. This article delves into the specifics of these types of deals, highlighting what to look for and how to avoid potential pitfalls.
What Does "$99 Down, $99 a Month" Really Mean?
The advertised price of "$99 down, $99 a month" is almost always a marketing tactic designed to capture attention. It rarely reflects the true cost of owning the vehicle. Here's what you should be aware of:
- High APR (Annual Percentage Rate): To make the monthly payment seem so low, dealerships often resort to significantly higher interest rates. This means you'll pay far more in interest over the loan's lifetime.
- Longer Loan Terms: These deals typically stretch the loan repayment period over an extended duration (often 72 or 84 months). While lowering monthly payments, it increases the overall amount you'll pay in interest.
- Higher Purchase Price: Dealerships might mark up the price of the vehicle itself to compensate for the low monthly payments, making the car more expensive than a comparable model purchased under different financing terms.
- Additional Fees: Don't forget about potential added costs like taxes, title fees, registration fees, and dealer preparation fees, which are often not included in the advertised price.
Is this deal legitimate?
Yes, the advertised price is often legitimate in the sense that it accurately reflects the monthly payment under a specific set of conditions. However, the overall cost of the vehicle may be substantially higher than advertised. The legitimacy lies in the transparency of the terms, not the misleading marketing. Always ask for a complete breakdown of all costs before signing anything.
What should I look out for?
- Fine Print: Scrutinize all documents carefully. Pay close attention to the APR, loan term, total amount financed, and all additional fees.
- Hidden Costs: Ask specific questions about any potential hidden costs, and don't hesitate to request clarification on anything you don't understand.
- Vehicle Condition: Thoroughly inspect the vehicle for any damage or mechanical issues before agreeing to purchase.
- Alternative Financing: Explore other financing options, including comparing rates from different banks and credit unions. You may find a better deal elsewhere.
How can I avoid getting caught up in these deals?
- Do your research: Compare prices from multiple dealerships before making a decision.
- Pre-approval: Get pre-approved for a car loan from your bank or credit union. This will give you a better understanding of your financing options and strengthen your negotiating position.
- Set a budget: Determine how much you can afford to spend on a car, including the down payment, monthly payments, and all other associated costs. Stick to your budget.
- Read reviews: Research the specific dealership and the vehicle's reliability.
In Conclusion:
While the "Mitsubishi $99 down, $99 a month" deal sounds appealing, it's crucial to understand the hidden costs and long-term implications. Be informed, compare options, and prioritize financial responsibility over alluring marketing tactics. Remember, the lowest monthly payment isn't always the best deal.
