Each person's definition of a Major Purchase is different, yet we all want to save money when we buy. Maybe you need new living room furniture, a new or a "new to you" car, or a refrigerator. Whatever it is, there is a simple process that you should go through to maximize your value and minimize your cost.
Follow these 5 Steps to Avoid A Major Mistake on Your Major Purchase.
- Plan Your Major Purchase
When looking to save money online, first is determining what you need. Consider how you will use the item. How long does it have to last? What is your budget? Are there any extra or repeating expenses (fuel, energy costs, maintenance) that you need to take into consideration?
- Pay Cash
Paying cash may be an opportunity to negotiate a lower price on your major purchase. Regardless, paying cash will eliminate finance charges. Generally, financing adds a considerable amount to the cost without any real benefit. So unless you are in the middle of an emergency and you have no choice, pay cash.
- Avoid extras and the Up Sell.
Optional equipment that you will not use or want may be a great deal for what it is but if you don't need it or want it, then it has no value (to you) so why pay for it?
Extended warranties are generally sold by a third party not the store, brokerage, manufacturer or dealer where you made your purchase. You can get them anywhere and it really pays to check out your options.
Some consumer advocates suggest that people are better off skipping extended warranties, and putting the money they would've spent in a savings account. If you need repairs, you'll have your savings to fall back on. And if you don't need repairs, you'll have extra money in the bank.
- Avoid buying more than you need.
This goes back to the first step. Knowing what you need and how you plan to use it. If you are thinking of taking a camping trip with your family and have little knowledge of how you will like it, maybe you should rent a camper for your next vacation to check it out before you opt to buy one.
Another consideration - How good does it have to be? If you are a gourmet cook and use a set of pots and pans every day, you are probably better off buying one really good set rather than 3 cheap sets that burn the food and warp within a few months of use. Conversely, if you cook rarely a less expensive set may serve you well.
- Investigate Online or Through Buying Clubs or Co-ops. Shop Around.
Once you zero in on a brand and model, read consumer review online and check pricing through various websites and regular stores.
Buying clubs, membership sites and co-ops also serve as ways to save on many if not all the items that you are likely to purchase. In some cases, these savings are far greater than you could imagine. And, in some cases, you can even be paid when you refer friends and help them save money as well.