Timing Your Spending Spree

How much time does it take you to whip out the plastic for a new purchase? A new spending index reveals that British consumers may spend more time on non-essentials than on major purchases. According to the HPI Cash Consideration Index, most consumers will spend 4.2 days choosing a car but more than 8 days choosing a holiday. And talking about getting your priorities straight, some Brits (40 per cent) spend more time on choosing glad rags than a new car.

The research looked at 1,000 shoppers to see how long they spent on purchasing decisions and weighed this against the cost of certain items. Brits only spend 36 seconds per pound spent on a car, while they spend more than 53 minutes per pound on choosing handbags. So why is this? Well, apparently it’s all to do with emotion. We’re so concerned about our image that we need to spend time on buying clothes and fashion accessories so we have the right look. In contrast, there’s much less emotional involvement in car buying – and we don’t do it that often.

Another reason for spending more time on items like holidays and computers is that it’s easy to search on the internet from the comfort of home, so deliberations can take as long as consumers want.

But is this good news for consumers in the long term? Not really. Researchers say the study shows that many consumers are not taking into account the risks of buying major items without enough research. They need to find the product that suits their needs and this is not just about money. Impulse buying a car can cost more in the long term. So the advice is to take some time before making that credit card payment – you could be living with that decision for a long time.