How Weather Influences Life's Big Spending Decisions
In general, a savvy seller can profit on shoppers' projection bias. That's why car dealers do all they can to ink a contract while you're pumped up over a test drive. Sleep on it and you're much more likely to have second thoughts -- and be glad you did.
The authors cite the value of cooling-off periods for certain purchases. Some laws, for instance, give buyers time to change their minds after high-pressure door-to-door sales.
But since the government can't protect us from ourselves all the time, buyers would be wise to impose their own cooling-off periods, waiting a day or so before committing to expensive, emotion-laden purchases.
So next time the temperature rises and the Mercedes convertible looks like a steal or the in-ground swimming pool that is "easily worth $20,000" is being offered to you as "practically a throw-in," cool off for a little while.
That goes for just about all of life's big decisions, the authors suggest, including marriage, switching jobs and having a baby.
More on home and car sales:
What's your home worth?
Why you should buy a small car.
What's new with used car values?
By Jeff Brown