If you just want to buy a car the old-fashioned way, the Diamond Retail Plan is for you. This is simply a conventional finance program that allows you to drive the vehicle off the lot, and pay for it with a series of monthly payments that include finance charges.
If you consistently drive more than 15,000 miles per year, subject your vehicle to hard use that would result in excess wear, or tend to keep your vehicles for more than a few years, the Diamond Retail Plan may be the most cost-effective way for you to start driving the Mitsubishi you've always wanted. Like all of our finance plans, the Diamond Retail Plan has certain benefits that can work to your advantage, which include:
Buying a car does give you some distinct advantages over leasing, since you'll own the vehicle and won't be renting it as you do with a lease. Vehicle ownership gives you the freedom to use your vehicle any way you wish — you won't be subject to mileage restrictions or be charged for excessive wear. If you consistently drive more than 15,000 miles per year, or subject your vehicle to hard use that may result in greater-than-normal wear, buying your vehicle through the Diamond Retail Plan may be your best choice.
With the Diamond Retail Plan, you'll be able to choose term lengths ranging from 1 to 72 months. The longer the finance term, the smaller the monthly payments will be, since you're now using more payments to buy the same vehicle. This may make your monthly expenses easier to manage, but you will end up paying more money in finance charges in exchange for those reduced monthly payment amounts.
The Diamond Retail Plan's uniformly sized monthly payments make paying off your vehicle a no-brainer. You won't have to plan for a larger final payment at the end of your term. There won't be a purchase option price to pay, as there is with the Diamond Lease Plan, if you want to assume ownership of the vehicle at the end of the lease term. You may find it easier to work these uniformly sized payments into your budget, since you won't have a larger final payment to contend with.
Though a down payment is not required, you can reduce the size of your monthly payments by making one and also save money over the finance term. That's because the size of your monthly payment is based on the vehicle's sale price, minus your down payment (which can be cash and/or your previous vehicle's trade-in value). The monthly payment amount is calculated by taking the remaining balance, adding finance charges, and dividing the sum into equal monthly payments over the finance term. The larger your down payment, the smaller your monthly payments will be. And since you're only charged interest on the amount you owe, a larger down payment means you'll pay less total interest over the finance term.