Money Management – Buying Expensive Items

Ok, we admit it - there may be times when you have to buy expensive items.

Here are some great ways of hunting for a good deal on those higher priced items you have to buy:

1. Make sure you really, really need to buy this big new item.
   
   
   1. Is the old one broken? Can it be fixed for less than buying a new one?
   
   
   2. Is there something else you already have that you can use instead?
   
   
   3. If there is no old one, why do you need a new one?
   
   
   4. Can you make do without it?
   
   
   5. Is there something else you should really do with the money?
   
   
2. Have you budgeted for the purchase?
   
   
   1. How much have you saved?
   
   
   2. If you have not saved the full purchase price, if possible – don’t buy until you have saved the entire purchase price.


3. Can you buy it second hand?
   
   
   1. Will buying second hand be a smart use of your money?


4. Can you buy it re-conditioned? We debated on this one. Some of us have had great success with re-conditioned computers, Playstations, and Xboxs (which came complete with the manufacturer’s warrantee). Some of us have regretted buying re-conditioned. It is up to you – but make sure you do your research!

If you have convinced yourself that you need to buy this big-ticket item, and you have the money to buy it - here are some smart-shopping tips:

5. Find out everything you can about the item - online, at the library, talking to other owners, etc.
   
   
   
   1. Compare brands
   
   
   2. Compare features
   
   
   3. Compare consumer reports
   
   
   4. Find out if extended warrantees are recommended for this item. Often, extended warrantees are a needles expense – but you need to do your homework before you pass on them.


6. Compare prices
   
   
   
   1. Use the internet
   
   
   2. Call stores directly for prices – ask them when the product will next be on sale
   
   
   3. Watch the flyers/papers


7. Once you have narrowed your search down to a few local stores – call them and find out:
   
   
   1. what is their refund policy
   
   
   2. what are their free in-store guarantees and warrantees (separate from the manufacturer’s)
   
   
   3. what is their policy on reimbursing you if they put the same item on sale within x number of days of your purchase
   
   
   4. how do they handle repairs?


8. Can you do better online?
   
   
   1. Check out online websites - make sure you are dealing with a reputable online website (check them out thoroughly – when in doubt – pass)
   
   
   2. Check prices and taxes
   
   
   3. Check delivery costs and time
   
   
   4. What is their refund policy
   
   
   5. What are their free guarantees and warrantees (separate from the manufacturer’s)
   
   
   6. If they put the same item on sale within x days of your purchase, will they reimburse you the difference?
   
   
   7. How do they handle repairs?


9. If you decide to buy from a local shop, visit the top two or three your research indicates are your best choices:
   
   
   1. check out the item in the store
   
   
   2. check out the condition of the store
   
   
   3. the attitude and product knowledge of the sales staff can give you a rough idea of the level of customer support you will receive in the future
   
   
   4. ask the sales person what the best price they can give you on the item is
   
   
   5. if you have a current ad for the item at a lower price at a competing store – ask if they will match the price
   
   
   6. find out if there are any mail-in offers with the product


10. Once you are back at home, decide which of the stores you want to buy from. Then return to that store the next day:
    
    
    1. review the store’s return, repair, in-store warrantees, and subsequent sale policies with your sales person.
    
    
    2. this is the part many people balk at – ask to have the package opened and go through its contents with the sales person to
       
       
       
       1. make sure nothing is damaged
       
       
       2. make sure all parts are present (of course if there are lots of parts, you will have to wait till you get home to do this)
    
    
    3. purchase your item. Consider asking for a discount for paying cash. Most places won’t give you a discount – but it does not hurt to ask


11. When you get home, get your new big item set up and tested.
    
    
    1. If everything is ok
       
       
       1. fill in the product warrantee card and send it in
       
       
       2. fill in any mail-in rebates and send them in
    
    
    2. If everything is Not ok – take it back to the store immediately and ask for a full refund.


12. After you have purchased the item, keep checking the flyers/papers. Some stores will refund you the difference between you purchase price and a subsequent sales price within a certain period. Even if they don’t have a policy for it, a call to the store can sometimes return some of your money to you.