What is the purpose of money back purchases?

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The whole money back thing makes absolutely no sense. If you are going to sell something for $500, then say you will give $100 back after purchase, why not just make the product $400? Is it some sort of sleezy marketing scheme? ELI5. Please! Make this make sense.

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Anonymous 0 Comments

For car companies at least, and possibly others, it’s so they can reduce the price of the car without reducing the actual list price of the car. Changing the list price can have various tax, insurance, legal, business implications. Can be time limited offers, etc. Not an expert tho, maybe someone else knows more!

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