Whether buying a house, car or piece of equipment, it is a thrill to make a large purchase. You want to make sure that what you are buying suits your needs. Here are ten things to ask yourself before the sale is made.
1. Do I Need It? There is a large difference between what you need and what you want. If your car has broken down on the side of the road, you probably need a different one. If you have safety concerns about the house that you are living in, you may need to move. Ask yourself if the item’s purchase will fulfill a need.
2. Have I Looked for Used Options? New cars depreciate dramatically when they are driven off the lot. There are businesses which specialize in used equipment, selling their wares for lower than the full price. When you buy quality used items, you are getting the same product for less money.
3. Have I Talked to Friends and Family About It? Friends and family have your best interests in mind. They can provide solutions and steer you toward options that may not have been previously considered. One of your friends or family members might have unique knowledge about your next buy.
4. Am I Being Pressured to Buy? There are very few large purchases which cannot be made tomorrow. Salesmen will play upon their customer’s emotions to overcome doubts. They might tell you that there’s another buyer for the product or claim that it is the last one in stock. Businesses make money by having one more of the item in stock.
5. Do I Know All the Costs Involved With It? There are often costs associated with the ownership of large ticket items. A car requires regular maintenance, gas and insurance. A house needs insurance, escrow and a repair fund. Be aware of the hidden costs of having the item.
6. Have I Read the Reviews? There are reviews available for nearly every product under the sun. Consumer Reports is a great place to start when searching for more information.
7. Do I Know What’s in the Contract? Nothing is official until the contract is signed. The contract is there to protect both you and the dealer. Read the contract thoroughly and ask questions if there is something that you do not understand.
8. Do I Have to Buy This on Credit? Is this purchase an emergency? If you are in dire need of this product, then make sure that you are purchasing it with the lowest interest rate possible. Make a repayment budget and stick to it.
9. Will This Ruin My Budget? Are you having to take from other categories in your budget to pay for this item? There are some who have not paid back the category that they borrowed from the last time. This situation is avoided if the purchase is not made.
10. Can I Pay for This Outright? Paying for a large purchase outright is one of the best feelings in the world. Some businesses offer cash discounts for items paid for up front. There is freedom in the knowledge that you do not have to make monthly payments.
Thoroughly research the items that you want. Planning and budgeting lead to fewer instances of buyer’s remorse. Good luck, and may you get the item that you’ve dreamed of.