1. Haggling Hints for ... Appliances and Electronics
Missed the big-box sale on that washer-dryer set, or need a new big-screen TV for the rec room but don't want to pay an arm and a leg? One smart tactic is to ask about floor models, returns and overstocks, says Kyle James, owner and founder of coupon and bargain-hunting site Rather-Be-Shopping.com.
"Store managers typically want them sold immediately so they don't take up valuable real estate," he says. "These items will typically be marked with a special tag. Start the negotiating at 20% off the asking price and be prepared to meet in the middle." While you're at it, it doesn't hurt to ask if they can throw in an extended warranty or delivery for free.
And if you're in the market for more than one big-ticket item, bundling those purchases may help you gain even more leverage.
James discovered the lure of the bundled sale when he was in the market for a new HDTV and DVD player a few years ago. He walked into a major electronics chain and asked the salesperson to knock off $100 if he bought both right then and there.
"He went and asked his manager, and within a minute, he came back and said they could reduce the overall price by $75," James says.
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2. Haggling Hints for ... Interest Rates
We've all felt the pinch of interest rates, whether on our credit cards, auto loans, mortgages or student debt—but how much leeway do you actually have to negotiate for a lower one?
One of the biggest factors, of course, is your credit rating and history. "If you've made late payments or have a bad credit score, you're more of a credit risk, so the lender may not lower the rate," says Priyanka Prakash, a finance specialist for FitBiz Loans, an online platform that helps business owners find financing. On the flip side, having a high credit score and a positive payment history only works in your favor.
Additionally, the kind of borrowing you're dealing with is important; the more regulated a particular type of loan or line of credit tends to be, the less likely you'll be able to negotiate the interest rate. "Credit card rates are relatively easy to negotiate compared to rates on other [types of] debt," Prakash says. "Student loans are difficult to negotiate because the rates are set at the federal level." Business loans, home loans and auto loans probably fall somewhere in between, she adds.
Showing that you've been shopping around also helps prove how serious you are about finding a lower interest rate. For instance, you could tell your credit card issuer that you're thinking of taking advantage of another company's 0% balance-transfer offer. Or perhaps you have a quote from a lender for a personal loan that you're hoping another bank matches. "Having the quote in writing shows you're serious," Prakash says. Additionally, if there's a timely reason why you're trying to lower your interest rate—maybe a job loss or medical crisis means finances are tight—she recommends having that documentation on hand.
Still unsuccessful? Then try your hand at getting loan fees reduced. Prakash says you'll have more leeway with fees that are charged directly by the lender, such as origination fees, application fees and closing costs, rather than those charged by a third party, such as appraisal fees or credit-report fees.
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