Bargain, hot deal, steal... every day consumers are bombarded with hundreds of seemingly promising offers. However, not every value buy saves money; some can be costly mistakes. Here's how to figure out the trap from the real deal.
Picking up a new credit card, and junking the more expensive old one, on a 0% balance transfer deal
It's a great way to save on interest, particularly if you aren't keen on paying the high rate for revolving credit with your existing card. However, be warned that such a teaser deal is typically temporary. If you don't pay the outstanding amount within the offer period, you will be penalised with a higher interest rate, possibly more than the one on your old credit card.
Straight cash discount instead of value-added promotion
The trouble with most value-added offers is that they come with caveats. It could be for a limited period, or you may land discount vouchers/coupons that don't appeal to you. What's not to like about saving hard cash? The only drawback is that you are unlikely to find such bargains at shopping malls. Hit standalone, smaller shops instead.
Registering on private sale websites
To begin with, registration is free, so even if you never get lucky, all you are wasting is time. The likes of Jetsetter. com and Sniqueaway.com hold short-term flash sales on unsold inventory at luxury hotels and cruises, where you could land discounts of 40-70%.
Buying gold because the jeweller insists it's a good investment
Given the high making charges and issues with determining purity, make sure that you buy jewellery solely for the love of bling. If investment is the agenda, you would be better off buying gold bars/coins or gold funds. The jeweller who promises you the moon will be quick to list out caveats while buying it back.
It may be the handiest option for travellers, but the airport is also the most expensive place to rent a car, especially at foreign destinations. Typically, you will shell out 12-15% more than the rental charges at any off-site location, including at or near your hotel. Try to wrangle a complimentary airport pick-up service from the hotel you've booked, and then check with the concierge for rental rates, or book a car online.
Accessories, perfumes and cosmetics from duty-free shops
These items, including designer watches and sunglasses, can be had much cheaper online. For instance, perfumes costing $53-55 (around Rs 3,000) at duty-free shops can be bought for around $50 (Rs 2,750) on Amazon.com, including shipping charges. Often, mall/high street sales too offer a better deal. However, duty-free shopping continues to be attractive when it comes to alcohol and cigarettes.
A gadget bought at a discount of 80% on a little-known website
It really should not come as a surprise that you are being ripped off. Online shopping promises discounts, but if just one player offers rebates far more than its competitors, it should be a red flag. For instance, the MRP on the HP Pavilion G6-2232TX laptop is nearly Rs 41,000, while Flipkart is offering it at Rs 38,342 and Laptopwale at Rs 38,100. So how can an unknown player offer it at just Rs 8,200? Other warning signs are an absence of credible contact information for the company. If the website is legitimate, chances are you are being peddled a counterfeit item.
A car dealer offering free insurance with the vehicle
These offers—abounding during the festive season—are limited in nature, say, for a year. From the second year onwards, you will have to renew the policy yourself and shell out the premium. Moreover, the scope of such policies is restricted to the mandatory part of motor insurance. If you are keen on add-ons, you need to make a separate purchase.
A co-branded store credit card that gives 5% instant discount on daily shopping
If you look beyond the promise of immediate savings, you will notice that such cards often carry higher interest rates than the plain-vanilla plastic. Also, the discounts or accelerated reward points accrual system that they boast are limited to a single store.a
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