Quiz | May 2011

SALES PITCHES: Should You Swing or Pass?

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Ever wonder if that deal is really a deal? Or if it's too good to be true? See how well you can tell the difference with our QUIZ.

We'll give you ten common sales pitches -- from insurance to warranties to credit-card offers -- to see if you can make the call. Batter up!

Quiz

SALES PITCHES: Should You Swing or Pass?

Question 1 of 10

You're renting a car for the weekend (in the U.S.) and the salesperson asks if you'd like to purchase insurance.

A. Swing
B. Pass

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 1 of 10

You're renting a car for the weekend (in the U.S.) and the salesperson asks if you'd like to purchase insurance.

You're right! B. Pass is correct.

Sorry, wrong! is incorrect.

The right answer is B. Pass.

Most people can pass on this offer, if they have their own auto insurance. (The exception: Your personal auto policy won't cover a rental for business purposes.) You also won't need personal accident coverage from the rental agency if your medical insurance covers where you're going. And your personal effects are probably covered by your homeowners or renters insurance. Some rental companies may charge for the car's diminished value, loss of use or administrative fees if you get in an accident. Check your auto insurance to see if these are covered, and weigh the cost against your risk accordingly.

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 2 of 10

A man comes to your door and says he just finished a home-improvement job up the road, and he has materials left over. He'll give you a great deal on the same job right now.

A. Swing
B. Pass

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 2 of 10

A man comes to your door and says he just finished a home-improvement job up the road, and he has materials left over. He'll give you a great deal on the same job right now.

You're right! B. Pass is correct.

Sorry, wrong! is incorrect.

The right answer is B. Pass.

Watch out for this classic scam, warns the Better Business Bureau. More often than not, there was no job up the road or any leftover materials. You could get stuck with shoddy work, work you didn’t agree on or a much larger bill than you expected. Never feel pressured into making a financial decision "right now." Better to shop around, check businesses out with your local BBB and get a few quotes before settling on a contractor.

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 3 of 10

You receive an offer in the mail for a credit card that tempts you with 1% cash back on all purchases and up to 5% back on certain categories, such as gas or groceries. The interest rate is high, but you have a habit of paying your credit-card balances in full each month.

A. Swing
B. Pass

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 3 of 10

You're right! A. Swing is correct.

Sorry, wrong! is incorrect.

The right answer is A. Swing.

Rewards credit cards can be good deals, especially if you pay your balance off each month. Instead of paying the credit-card company interest, it pays you. If you tend to carry a balance, you may be better off with a low-rate card with no perks. Otherwise any rewards could easily be wiped out by the interest you'd have to pay.

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 4 of 10

You are buying a certified used car from the dealership. The salesperson pitches you an extended warranty offer.

A. Swing
B. Pass

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 4 of 10

You are buying a certified used car from the dealership. The salesperson pitches you an extended warranty offer.

You're right! B. Pass is correct.

Sorry, wrong! is incorrect.

The right answer is B. Pass.

This is one you can usually pass on. Most certified used cars are less than five years old and have fewer than 60,000 miles. They're also thoroughly inspected and come with their own warranties, often for an extra year for bumper-to-bumper coverage and longer for power-train coverage. If you're the cautious type, consider a less-expensive "wrap" warranty that picks up where the power-train coverage leaves off.

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 5 of 10

You're in your 50s. Your insurance agent suggests you consider buying long-term-care insurance.

A. Swing
B. Pass

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 5 of 10

You're in your 50s. Your insurance agent suggests you consider buying long-term-care insurance.

You're right! A. Swing is correct.

Sorry, wrong! is incorrect.

The right answer is A. Swing.

Buying long-term care insurance can be a good move. On average, 60% of individuals over age 65 will require at least some type of long-term care services during their lifetime. The average annual cost of a nursing home tops $75,000, and a year in an assisted-living facility runs around $35,000. It makes financial sense to cover your bases, and buying in your 50s can lock in a lower rate than if you wait until your 60s or 70s.

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 6 of 10

You are spending $3,000 on a new TV, and you have saved up the money to pay for it. The clerk mentions that you can save 15% on today’s purchase if you open a store credit card.

A. Swing
B. Pass

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 6 of 10

You are spending $3,000 on a new TV, and you have saved up the money to pay for it. The clerk mentions that you can save 15% on today’s purchase if you open a store credit card.

You're right! A. Swing is correct.

Sorry, wrong! is incorrect.

The right answer is A. Swing.

Go for it, but don't make a habit of it. On big-ticket purchases, this sales pitch could save you a lot of money -– in this case, $450. The store will probably charge your purchase to the card, so make sure you have the cash ready to pay off your bill immediately, or you could erase your savings by paying interest charges. Note, however, that doing this too often over short periods of time can hurt your credit score. So reserve this strategy for rare occasions that provide a true value for you.

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 7 of 10

Your credit union offers $15,000 of free life insurance coverage to its members. All you need to do is fill out the form and mail it back.

A. Swing
B. Pass

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 7 of 10

Your credit union offers $15,000 of free life insurance coverage to its members. All you need to do is fill out the form and mail it back.

You're right! A. Swing is correct.

Sorry, wrong! is incorrect.

The right answer is A. Swing.

That $15,000 probably isn't as much coverage as you need -- especially if you have young children -- but it's a nice start, so take the freebie. You'll probably get a pitch to purchase additional life insurance, too. If you need it, make sure you shop around to compare your credit union's rates with other companies before buying. There may be a better deal out there.

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 8 of 10

You want to buy an item for your collection through an online auction site. The price is right, but the seller is new and doesn't have any buyer feedback.

A. Swing
B. Pass

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 8 of 10

You want to buy an item for your collection through an online auction site. The price is right, but the seller is new and doesn't have any buyer feedback.

You're right! B. Pass is correct.

Sorry, wrong! is incorrect.

The right answer is B. Pass.

While the majority of sellers on online auction sites are legit, be on the lookout for possible scams. No feedback or mixed feedback is a red flag. This case may simply be a good seller who's just getting started, but you'd better play it on the safe side and pass. Let this train leave the station, and wait for another auction from a proven seller.

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 9 of 10

You come across an online offer that promises you a free copy of your credit report. All you need to do is sign up for a free trial of the site's credit-monitoring service.

A. Swing
B. Pass

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 9 of 10

You come across an online offer that promises you a free copy of your credit report. All you need to do is sign up for a free trial of the site's credit-monitoring service.

You're right! B. Pass is correct.

Sorry, wrong! is incorrect.

The right answer is B. Pass.

Most of those offers come with strings attached. Yes, the sites will give you a free copy of your credit report and free credit monitoring for 30 days or so, but if you don't actively cancel the service after the initial trial period, your credit card could be charged. Most people don't need constant credit monitoring. Besides, by law you are entitled to a free copy of your credit report each year with no strings. Simply go to AnnualCreditReport.com.

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 10 of 10

You attend a financial seminar where a broker guarantees investment returns of 12% annually.

A. Swing
B. Pass

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Quiz

SALES PITCHES: Should You Swing or Pass?

Question 10 of 10

You attend a financial seminar where a broker guarantees investment returns of 12% annually.

You're right! B. Pass is correct.

Sorry, wrong! is incorrect.

The right answer is B. Pass.

There really is no such thing as a free lunch. Be suspicious of any sales pitch that promises unrealistic returns. No investment can guarantee such sky-high results. More than likely, the broker is pitching unsuitable or risky investments, or is over-hyping his or her abilities. Learn more about how to make sure your adviser is legit.

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Quiz

SALES PITCHES: Should You Swing or Pass?

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Quiz | May 2011

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