The purchase price of a car can be paid not only in cash but also by car loan (personal car loan). The advantage of a loan is that you can purchase a car even if you do not have a large amount of money on hand, so many people use a loan.
This time, we will introduce the car loans available for purchasing a new Mitsubishi Motors car, their features, points to consider when taking out a loan, and an example of a repayment simulation. We will also explain how to purchase a high-quality used car at a good price, so please use this as a reference when choosing a car.
table of contents
1. Basics of car loans you should know, not just for Mitsubishi cars
2. Features of car loans offered by Mitsubishi UFJ Bank
3. What are the two loans available for purchasing a new Mitsubishi Motors car?
4. Simulation of repayment amount for three Mitsubishi Motors loans
5. Points to consider when taking out a car loan to purchase a new Mitsubishi car
6. Check out Nextage used cars before taking out a Mitsubishi car loan
7. Summary
Basics of car loans you should know, not just for Mitsubishi cars
Simply put, a car loan, which can be used when purchasing a car, is a system in which a bank or dealer lends you the money to cover the cost of purchasing a car, and you repay it in installments.
The cost of purchasing a car often comes down to a lump sum. For those who cannot afford the lump sum, the car loan system, which allows you to pay the price in installments while still driving the car, is a major advantage.
There are two main types of car loans: “bank-affiliated” and “dealer-affiliated.” First, let’s look at the characteristics of each.
Characteristics of bank-affiliated car loans
Bank-affiliated car loans are offered by banks, including credit and labor banks, and are generally limited to the purchase of a car. This type of loan is sometimes called a “personal car loan.”
Interest rates tend to be lower than dealer loans, making it possible to reduce the total payment amount. In addition, it is a form of “borrowing cash to purchase a car,” and there is an advantage that the purchaser owns the purchased car.
On the other hand, bank car loans tend to have strict screening. Also, it takes several days from the time you apply for the loan until the money is actually transferred to your account. If you use them, try to get a provisional screening and apply early.
Features of dealer loans
Dealer loans are loans offered by credit companies affiliated with car manufacturers such as Mitsubishi and Toyota. You can apply for a loan at the same time as purchasing a new car at the dealer, and the screening period is short, so the car purchase and loan procedures go smoothly. In addition, the screening standards tend to be less strict than bank car loans.
However, the interest rate is high, and the total payment amount is higher than if you were to pay in full or use a bank car loan. Also, since the cost is borrowed using the car you are purchasing as collateral, the ownership of the car remains with the dealer or loan company until the loan is paid off.
Features of car loans offered by Mitsubishi UFJ Bank
We will introduce the specific details of bank car loans using the “Net DE My Car Loan” offered by Mitsubishi UFJ Bank as an example. This time, we will provide information on the regular “Net DE My Car Loan”, which is not a “fixed rate type”.
・Features of Net DE My Car Loan
| Lower interest rates than fixed rate loans | Variable interest rate (2.975% per year) (*) |
| Flexible loan period | From 6 months to 10 years (in units of one month) |
| Accepts refinancing from other companies | Available only to those who meet the conditions |
| Partial early repayment and full repayment before maturity are possible | A fee of 5,500 yen (tax included) is required.
(Free if you pay online) |
| Loan amount | 500,000 yen to 10 million yen (in 10,000 yen increments) |
What are the two loans available for purchasing a new Mitsubishi Motors car?
Next, as an example of a dealer loan, we will focus on the loan offered by Mitsubishi Motors Finance Co., Ltd. The car loans offered by this company are positioned as Mitsubishi Motors dealer loans and are offered in two types: “Mitsubishi Motors Credit” and “Ultra My Car Plan.”
Credit cards with payment options
Mitsubishi Motors Credit is a dealer loan available at Mitsubishi Motors dealerships nationwide and its affiliated dealerships. There are four payment methods to choose from: the three below and one residual value type.
| Regular payment
(Bonus combined payment/equal payment) |
Set a repayment period and repay the same amount every month by dividing the loan amount by the repayment period. Can be used in conjunction with bonus payments. |
| Specified amount payment
(Adjust) |
Specify the monthly repayment amount and repayment period. The minimum amount can be set from 3,000 yen. The decimals will be adjusted at the time of the final repayment. |
| Uneven payments
(Step) |
You can freely set the repayment amount as long as it i |
[Residual value credit] Super My Car Plan
The fourth repayment plan for “Mitsubishi Motors Credit” is the “Super My Car Plan”, which is a residual value credit. Residual value credit is characterized by the fact that the amount to be paid at the time of final repayment (residual value) is set in advance (※1), reducing the monthly repayment burden. Repayment periods can be chosen from 3, 4, or 5 years, and contract mileage can be chosen from 1,000km or 1,500km.
After the final repayment, you can choose to either switch to a Mitsubishi vehicle or return the loan (※2), re-credit, or pay in full. Only the Outlander, Eclipse Cross (PHEV model), and Delica D:5 can be set to a 6- or 7-year repayment period.
*1 Residual value is the expected vehicle price at the end of the credit period, i.e., the expected value of the vehicle at the time of final repayment.
*2 If the mileage or damage to the inside or outside of the vehicle exceeds separately specified conditions, costs will be borne by you.
[Flat Rate Service] Ultra My Car Plan
The second dealer loan available for purchasing a new Mitsubishi Motors vehicle is a fixed monthly repayment car loan called the Ultra My Car Plan.
A major feature of this car loan is that it includes all the various expenses that are not included in Mitsubishi Motors Credit, such as automobile tax, automobile weight tax, compulsory automobile liability insurance premiums, automobile insurance premiums, a drive recorder with automatic alarm function (this can be selected not to be included in the contract), Tsuku² Guarantee I, and self-repair history compensation.
The condition is that you must return the vehicle after paying off the loan. The fixed repayment method includes monthly maintenance costs, so you can estimate your expenses without any sudden expenditures, and you don’t have to worry about forgetting to pay taxes or insurance premiums.
Mitsubishi Motors repayment amount simulation for three loans
Next, we will calculate the repayment amount assuming the purchase of a “Delica D:2 HYBRID MX” based on the simulation service provided by Mitsubishi Motors Finance Co., Ltd. The manufacturer’s suggested retail price (required funds) of the “Delica D:2WD HYBRID MX” is 1,883,200 yen (tax included), and this time there will be no down payment or bonus payment, and the number of repayments will be set to 60.
When using credit
First, let’s look at the case where you purchase the car with Mitsubishi Motors Credit’s regular payment (equal payments). The interest rate is calculated at 6.8%.
| First payment | 37,965 yen |
| Second and subsequent payments | 37,100 yen x 59 sessions |
| Installment Fee | 343,665 yen |
| Total installment amount (required funds + installment fee) | 2,226,865 yen |
When using the Super My Car Plan
Next, let’s look at the case where the monthly mileage is set to 1,000 km with the Super My Car Plan. The interest rate is set at 3.9%.
| First monthly payment (first payment) | 28,425 yen |
| Monthly payment amount from the second onwards (payment amount from the second onwards) | 29,900 yen x 58 sessions |
| Final payment (residual value) | 342,000 yen |
| Installment Fee | 221,425 yen |
| Total installment amount (required funds + installment fee) | 2,104,625 yen |
When using the Ultra My Car Plan
Finally, we will introduce the results of a simulation of the Ultra My Car Plan using the Delica D:2 HYBRID MZ All-round Camera Package 2WD model.
The manufacturer’s suggested retail price is 2,110,900 yen (tax included), the age requirements are 21 years or older, the usage period is 5 years, there is no down payment, and the monthly mileage is 1,000 km. In this case, the monthly usage fee (estimate) is 49,720 yen (tax included).
Important points to consider when taking out a car loan to purchase a new Mitsubishi car
So far, we have introduced an example of the repayment amount for purchasing a new Mitsubishi car with a car loan. When purchasing a new car, there are three points to keep in mind when using a dealer loan. Compare the advantages and disadvantages with bank loans and other options, and choose the loan that suits you best.
The car is not in your name while you are paying off the loan
When purchasing a car using a dealer loan, the dealer will retain ownership of the car (the owner of the car) until the loan is paid off. The user is considered the “user.” Not only can you not sell your car without permission, but if you are involved in an accident, you may be asked to pay off the remaining loan balance in full depending on the extent of the damage.
For this reason, many people feel dissatisfied with the fact that the car is not theirs until it is paid off in full.
How to reduce your total repayment amount
When you take out a loan, your monthly repayments will include “interest” in addition to the principal. The longer the repayment period, the higher the total amount of interest you will pay. If you shorten the repayment period to reduce the amount of interest, your monthly payment will increase.
As a guideline, the interest rate for bank loans is around 3%, while the interest rate for dealer loans is around 7%, which means the interest rate difference is more than double. It is important to consider lowering the price of the car you are purchasing by one level or paying a larger down payment, and find ways to reduce the loan amount itself.
It is also important to reduce your monthly repayment burden.
This is true regardless of the type of loan you use, but many people find monthly loan repayments a burden in their daily lives. It is also important to consider the possibility that changes in lifestyle, such as changing jobs or changing family structure, may increase the burden of repayments during the course of loan repayment.
Why not use the opportunity of taking out a loan as an opportunity to review your spending? We recommend that you not only make a flexible loan repayment plan, but also consider ways to save money on your spending to reduce your monthly repayment burden.
Check out Nextage’s used cars before taking out a Mitsubishi car loan
If you are not particular about buying a new car or taking out a loan, we also recommend purchasing from a store that sells used cars. With a used car, you can consider models that you would not be able to afford as a new car.
Nextage, which has stores all over the country, handles a large number of used cars, including Mitsubishi Motors. When purchasing a used car, the quality of the car can be a cause for concern, but Nextage is particular about it, so you can rest assured about your car life after purchase.
If you want to save money on your purchase, we recommend buying a used car rather than a new one!
If you want to save money on your purchase, you can buy a used car instead of a new one. Nextage is a used car dealer with over 200 stores nationwide, and not only can you get a good deal on your purchase, but we also have a stock of about 30,000 high-quality used cars. We have a wide variety of cars in every genre, including popular models.
Even if you are inexperienced when it comes to cars, our experienced staff will listen carefully to your budget and preferences and suggest a vehicle that you will be satisfied with.
With Nextage, there are reasons to feel safe even with used cars.
Many people are worried about used cars breaking down or having problems. Nextage does not sell any cars that have been repaired (accident cars) or that have been damaged by water, which are at high risk of problems.
Furthermore, to ensure that our customers can enjoy their car life with peace of mind, all of the cars we sell, whether domestic or imported, come with a generous free warranty. We also provide paid “service support” that includes road service in case of trouble and maintenance such as oil changes.
summary
Of the dealer loans and bank loans introduced here, it is not necessarily the case that one is better than the other. It is important to carefully compare the advantages and disadvantages of each loan and use the loan in a planned manner.
Nextage is confident in offering high-quality used cars with a variety of comprehensive warranty services. If you have any concerns about purchasing a car, please contact Nextage.