Is Mitsubishi Financing More Expensive for Used Cars?

O’Brien Mitsubishi of Normal does our best to ensure that buying a used car from us goes just as smoothly as buying new. By and large, we succeed at this. However, there are a few minor differences, as you may find when you apply for Mitsubishi financing. Let’s see why used car financing can be slightly more expensive than a new car.

From the Lender’s Perspective

As far as the buyer is concerned, the paperwork and process for a used car loan is no different than a new one. However, the lender sees both types of loans a bit differently, since they’re evaluating risk in addition to the amount of money lent. These are a few reasons that can result in a higher loan cost.

A Mistaken Perception of Lower Reliability

Used vehicles are built more reliably than ever before. Lenders still view them as less reliable than a brand-new model. Accumulated wear and tear, a potentially unknown repair history, and fewer safety features in older models mean the financer is taking on more risk.

Shorter Warranty Coverage

Not all used cars sill have warranty coverage, and even the ones that do may not have much time left. If anything goes wrong, the borrower could face a stiff bill on their own, putting the security of repayment at risk.

Higher Repair Bills

For much older models, repairs can be more expensive because parts are harder to source.

Workarounds

Luckily, it’s not all bad news.

• Used cars cost less so there’s less to finance.
• You can also lower your loan amount by leaving a higher down payment or trading in your current car.
• Finally, financing less means you’ll typically pay less over the life of the loan even if the interest is a bit higher.

Test Drive a Used Mitsubishi in Normal Today

O’Brien Mitsubishi of Normal keeps buying and financing a smooth and easy process. Our finance center staff will help you determine and stick to a budget, tailoring financing to your needs. Visit us to browse our used inventory and take a test drive today.