Making a Big Purchase? Avoid Committing These Mistakes

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Buyer's remorseHere are some things you need to know to avoid buyer’s remorse.

A lot of people commit mistakes when making a purchase. This might be okay if you only bought a small ticket item. After all, the cost may not be enough to make you lose sleep. However, the consequences of making a mistake when buying big ticket items can have a far more serious complication. Buyer’s remorse can cause physical and emotional symptoms (sweaty palms, nausea, anxiety, guilt, self-doubt), and may leave a nasty dent on your bank account as well.

What are some of the most common mistakes people make when buying big ticket items (real estate, car, vacations, electronics and/or appliances)? Here are some of them.

Waiting for the last moment to buy a replacement item. It makes no sense to buy a high ticket item (such as a major appliance, a computer or a laptop) only after your existing unit has broken down. To save money, consider buying a replacement once the item starts to show signs of wear and tear or when it is not working as well as it used to. This will allow you enough time to shop during major holiday weekend sales. With this strategy, you can save as much as 20% to 30% off the sale price.

If you are planning to buy a car, consider shopping at the end of the month since the dealers are eager to meet their quotas and would most likely give you a great discount or offer a lot of perks. You can also shop in the early fall since new models usually arrive on lots during this time and the previous year’s models drop in price.

Paying for extended warranties. Most people inevitably fall for extended warranty upsells. After all, it makes perfect sense to pay a little extra to protect your purchase, right? Wrong. As a general rule, you should not pay for extended warranties since most products do not usually break during the two- or three-year extended warranty period. Even if they do, the cost of repairs will only cost as much as the extended warranty.

In addition, if you bought the item using your Visa, MasterCard, American Express or Discover credit card, your card issuer will automatically extend the warranty up to one year on items with existing manufacturer’s warranty.

Not considering other saving options. Don’t settle for the sales price without looking at your other options. While shopping for big ticket items when they go on sale gives you the opportunity to save hundreds of dollars, you should also try to see if other retailers offer better perks and cash-back offers.

Tips to Save Money When Buying Big Ticket Items

  • Do your research and get to know your options.
  • Create a “Buy It Later” list to help you determine if you really need or want a particular item.
  • Plan and save accordingly.
  • Avoid credit or rent-to-own.

With a little research and planning, you can purchase a big ticket item and save a lot of money in the process.