Michael Petruccelli asks: What are some misleading claims people often make to close a deal? (9)

Michael Petruccelli says:  “You really should get an extended warranty for that.”
The usual suspects: Slick product salesmen who know-better — and many minimum-wage sales associates who don’t.
Reality check: As I’ve said many times, sometimes extended warranties actually do make sense. The trick, of course, is figuring out exactly when it’s advantageous to pull the trigger. Of course, sometimes that means taking a step back so you can discern fact from fiction.

Michael Petruccelli asks: What are some misleading claims people often make to close a deal? (8)

Michael Petruccelli says:  “We don’t have Coke, we’ve got Pepsi — but they’re the same thing.”
The usual suspects: Exasperated waiters, waitresses, and fast-food cashiers.
Reality check: Anybody who tries to convince you that Coke and Pepsi are interchangeable needs a new set of taste buds because there’s a big difference between the two colas. I know. This one seems rather petty, but most of us take our soft drinks seriously.

Michael Petruccelli asks: What are some misleading claims people often make to close a deal? (7)

Michael Petruccelli says:  “Two month’s salary is a reasonable amount to spend on an engagement ring.”
The usual suspects: DeBeers, jewelry store salesmen, and gold-digging girlfriends / partners.
Reality check: Sorry ladies, but this is one of those financial old wives’ tales that is based upon a old and very successful marketing campaign by the De Beers diamond company. The size of an engagement ring should only depend upon what your man can reasonably afford — not his salary.

Absolutely gorgeous, the De Beers Platinum Diamond Ring boasts a nine-carat gem placed on a perfectly polished platinum ring. It is priced at $1.83 million.

Michael Petruccelli asks: What are some misleading claims people often make to close a deal? (6)

Michael Petruccelli says:  “If you want your investments to outperform the market, you need to let a professional actively manage your money.”
The usual suspects: Mutual fund managers and other active-investing advocates.
Reality check: An extensive survey by Nerd Wallet found that fewer than 1 in 4 professional investors were able to beat the market over the past decade. In fact, according to Nerd Wallet, “The majority of people who paid a mutual fund manager to invest their assets over the past decade would have done better by simply investing in a passive index fund, typically at much lower cost.” 

Michael Petruccelli asks: What are some misleading claims people often make to close a deal? (5)

Michael Petruccelli says:  “Of course it’s a good deal — you’re buying in bulk!”
The usual suspects: Most everybody.
Reality check: Some things are better off being bought in smaller quantities. For example, most perishables, including things like brown rice and mayonnaise, are usually better off being purchased in smaller quantities.

Michael Petruccelli asks: What are some misleading claims people often make to close a deal? (4)

Michael Petruccelli says: “What do you mean you can’t afford it? We’ll just lower the monthly payments!”
The usual suspects: Car salesmen, timeshare peddlers, real estate agents, mortgage brokers, mattress dealers and other folks who sell big-ticket items on commission.
Reality check: Go ahead and laugh, but lots of people fail to think about the extra financing costs that drive those lower payments. Consider the example of a $10,000 used-car loan with an interest rate of 6%. Sure, spreading out your payments from three to seven years would lower the monthly payments from $304 to $146; but all of the extra interest payments end up boosting the final vehicle price by $1319.