Comparison shopping

Saving money on big purchases isn’t just about picking the cheapest option. Bigger expenses often have other factors to consider, like repair costs, quality, and service availability.

Comparison shopping helps you identify the real cost of what you’re buying, which can help you make better financial choices. Even if you feel like you don’t have a lot of money to spend, comparison shopping can help you find deals and make the best decision for yourself. 

Consider three sets of tires:

• Set A costs $400, will last for 100,000 miles and comes with free repairs, but it’s a two-hour round trip every time you need service.
• Set B costs $200, will last for 75,000 miles and comes with free repairs. The repair shop is on your normal commute.
• Set C costs $100, will last for 20,000 miles and does not come with a service plan.

If your only consideration is how much you have to pay right now, it’s an easy choice: Set C. But over the next 100,000 miles you drive, you’ll have to replace those tires four times, costing you a total of $500. That’s $100 more than the most durable option – and that doesn’t include the cost of repairs, which are free with the other choices.

There’s no right answer here, since everyone’s financial situation is different. Sometimes the cheapest option may be all you can afford, even if it’s not the best deal in the long run. This can be especially true in an emergency, and that’s fine. But when you have the chance to plan for a purchase, you can use comparison shopping before you buy to save yourself money.

For more tips on how to save and budget your expenses or to talk about your individual financial situation, fill out the form below.