Money & Finance

Don’t be fooled by what you think is a bargain! Retailers have ulterior motives – it’s not in their best interest to give you a great deal. So here’s how to read between the lines and come out ahead.

• Take 0% financing. If you’re planning a big purchase like a car, 0% financing sounds great, right? The trouble is, the deal often comes with a lot of fine print. First, you have to have an excellent credit score to qualify – only about 30% of people do. Also, if a car dealer gives you that 0% rate, they won’t want to haggle too much on the price of the car. Like if you don’t pay off the balance within a certain time frame, you’ll be socked with an even bigger interest rate than you would have normally gotten.
• The next tricky bargain: Free shipping. With so many online shopping options, it almost seems silly to pay for shipping, but ironically, that freebie has been proven to cost you big time. Studies show that people are more likely to buy a $5 item with free shipping than to buy an item for $3 with $2 for shipping. When it comes down to it – it’s the same price. So don’t be fooled into buying something more expensive just to save on shipping.
• The third bargain that’s no bargain: No hassle returns. Knowing an item is easy to return and refundable not only makes customers more likely to buy, but get this: People who buy something knowing they can return it at anytime without a receipt – are less likely to return it, too! They figure they’ll get around it – but they never do. So before you buy something you’re unsure about ask yourself how likely it is that you’ll come back and return it if it’s not right. If you’re not sure if you will, don’t buy it in the first place.