Renting VS Buying

by Andrea Hermitt | More from this Blogger

I am sure the title made you think about renting a home versus home ownership. When being frugal however there are alot more things that you need to ponder over when it comes to renting or buying. It amazes me the things people will rent and the prices they will pay for the rental when they could in fact, own the item. Here is a list of items that you should seriously consider purchasing if you are in the habit of renting.

Tuxedo: To rent a nice tuxedo can cost $75.00. A really nice tuxedo can be upwards of $200. Well, a brand new Tuxedo with the cummerbund, cuff links, tie, and button covers only costs $200.00 at discount stores like Syms. Pay another $40 for alterations and you have a perfectly fitting Tuxedo, something you can't get from a rental store. My rule on renting a tuxedo is that if you use it more than once a year and your size does not fluctuate too much, buy it. You should also look into options for getting Frugal Upscale Clothing.

GPS Unit: I own an old outdated GPS unit and have been complaining for about 2 years that I needed a new one. The old GPS was useless on vacation as it needed programming that is no longer available to work outside of my state, so I planned to rent one for the trip. Upon realizing that to rent a GPS could cost me $100.00 for the trip, and knowing that a new GPS cost only $129, guess which option I took. If you guessed that I bought a new GPS, you are correct! So if it is something you need and the cost to purchase it is close to the rental price, buy it and call it a souvenir.

Furniture: In my opinion, the only time you should rent furniture is when you are staging a house and the furniture that is called for is something you would not want to live with long term. Otherwise for temporary furniture for an event, borrow person should always purchase furniture in cash.

Banquet Tables and chairs: For someone, or an organization that has regular events, it is a sin to rent the same banquet tables over and over. If you rent tables 4 times in a year, you have more than paid the purchase price for them. If you have no place to store them you should realize that a single storage unit is still far less than the rental of one table. This item is a toss up, but the rule is, if you have two or more events a year, you should own the tables and chairs. Add the cost of storing the tables to the purchase price to see if it is less than the cost of two to four rentals.

Event tent: Event tents should be considered in the same way as Banquet tables and chairs. If you are a vendor and do several shows a year, you should own your own tent. Ad the cost of 2 years typical renting costs and compare that to the cost of owning one. If it costs less to own it, make the purchase.

Purchase and sell option: Sometimes, it is just easier to buy the item than to go through the hassle of renting it. If you find that you no longer need the item, you can always sell it and make half of your money back. If you are deciding between renting and item or buying and selling the item, find out how much it is worth second hand (like on Ebay).

Things you should rent: There are some things you should go ahead and rent based on usage and cost.

My husband rents a chain saw once a year or once every two years at best. The chainsaw cost $45 to rent and $600 to purchase. It would take 12 years to make buying the chainsaw worth while. It should be rented.

An inflatable jumper or moonwalk costs $2500.00 at best. Only large organizations that use them regularly should purchase them. To rent them for one party costs approximately $200 for a rental and someone else sets it up and takes it down. If a frugal person were to need a moonwalk (chances are we would go for a much cheaper slip-n-slide) then it should be rented.

Andrea Hermitt writes for parenting (specifically teens), the home blog, and also the frugal blog, and homeschooling at families.com.

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Andrea Hermitt is a native New Yorker currently residing in GA. She has been married for over 16 years and has two teenage children.

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