Written by Brett Harris | There’s a fabulous example floating around out there of just why the debt-strapped shouldn’t rent from the popular chain-rental stores. The example looks at a sofa and love seat rented for $26.99 per week at an interest rate of 121.89 percent. In two years, the sofa will be yours, and you’ll have paid just over $2,800 for a $1,000 piece of furniture.
The good news is that this isn’t always the case. There are times when it makes more sense to rent than it does to buy. Here are just some of those instances.
1.Designer Clothes and Bags
For some women, ball gowns are a necessity. For others, a fancy dress is something worn once a year, or even less often. If you’re hurting for cash, it doesn’t make any sense to spend $300 or more on a gown that you will wear once. Instead, you can rent a dress for a week for pennies on the dollar. Sites like Wear Today Gone Tomorrow and Rent the Runway allow you to shop online, and they deliver the gown right to your doorstep.
2.Tools
It makes good sense for every household to have a basic tool kit. But what if you have a major project that only requires the heavy machinery for a short time? Stores like The Home Depot rent out large tools for the occasional home improvement project. Consider that you can rent a chainsaw, for example, for under $70 per day. That same chainsaw could cost close to $600 to buy. Before you rent, ask yourself if you’ll be using the tool frequently. In these cases, it may make more sense to buy.
3.Textbooks
Ask any college student and they will tell you: textbooks are a major investment. Whether you’re going to school for the first time or are a non-traditional student, it makes sound sense to rent your textbooks rather than buying them. This is especially true if you don’t have any intention of keeping the books for future use. If you aren’t sure if a specific book will be of use to you in your career, shoot your professor an email.
4.Furniture
Wait! Didn’t you just read that it doesn’t make sense to rent furniture? Yes, you did. But, it does make sense in certain situations. For example, if you have guests coming to stay and don’t want to make them sleep on the floor, renting a bed for a week is a good idea. Sites like Cort will let your furnish a room for an entire month for just a few hundred dollars. If you are staging a home to sell, will only be living in the location for a few short months, or have guests staying over, renting can be the smart choice.
5.Trucks
There’s almost no one who would go out and buy a truck because they’re moving or have something to haul. The Home Depot will rent you a truck for $69 a day. This is a great option for those who have a major project and no friends with a pickup to lend.
In most cases, it makes more sense to save your money for a short while and buy what you need. In other cases, it makes more sense to rent. If you need something for the short term, find out if it something that you can rent for a day, a week, or even a month. Not only do you save money, but you save space.
Accountant Brett Harris likes to blog about financial topics. If a career in finance interests you check out the Top 10 online finance degree programs to help you choose a school here: www.masters-in-accounting.org/best/top-10-online-bachelors-in-finance-degree-programs.