Simple Savings Sunday #8 – Rent Instead Of Buy
Welcome back to Simple Savings Sunday. I hope everyone is having a great weekend so far. I know that my weekend has flown by as they usually do. I just don’t understand how two days can move so quickly. You can take any two days during the work week and they crawl by, but when you take two days over the weekend, they fly. I mean, it is still the same exact amount of hours, but come on! To make matters worse, I am fighting the dreaded man cold! If you haven’t heard of it, then check out this video, it is funny. Ok, enough about me, back to Simple Savings Sunday. I have a simple tip this week and I hope it will save you some cash. Let’s talk about renting instead of buying.
Rent Instead of Buy
Let me first say that I am not talking about cars or houses here. Getting into the specifics over those purchases would take way more than one simple post and I just don’t feel like tackling that right now. What I am talking about is the concept of smaller purchases. Let me give you a few examples where I have used this.
As most of my readers know, I am an avid DIY car guy. I love working on vehicles and even have a second car just to play with. It’s a Jeep Wrangler. Because of my passion, I have a lot of tools in my garage. It is nice to have so many tools, but it also costs a pretty penny. When I was rebuilding my last Jeep, it required a lot of work. So much work that I was at the car parts store every day. They knew me by name and we would chat for some time. Although it was nice to have the personal service, it was coming at a cost.
My Buying Mistake
Every time I needed to get something done, I would buy the tool necessary to complete the job. Sometimes this meant buying a specialized tool that cost a good amount. The problem was that the car parts store and most of them also rent out tools. Since I was a frequent buyer, I could rent out the tool for much less than the price to buy. The issue is that I never did. I also tried to justify buying to tool because I could use it again in the future. Well, that hasn’t happened yet. Some of my specialized tools were only used for that rebuilt and can’t even be used on my newer Jeep. That was a waste of money. I should have rented instead of bought those tools.
Another quick example is that we need to pressure wash our home and driveway before we put it up for sale. I was going to hire someone, but then they started coming out and pricing it. I think they are charging way too much and I am not cool with that. Naturally, I started shopping around for a pressure washer. Unfortunately, they come at a cost as well. A good pressure washer is at least $300. I have looked around craigslist and they still are around $200 to $250.
I also took time to read reviews and found that most people just don’t use them often. So you are paying a high price for each use if you buy. I mean, I haven’t used a pressure washer yet in the 7 years we have lived here, so what made me think that I would magically start using one after I bought it?
Then I found a few companies that would rent out pressure washers. Some charged way too much, more than what you can buy them for. Then I found a few companies that would only charge me $40 per day. I only need it for two days to get all of the work done, so I would only be out of pocket $80! On top of that, I don’t have to worry about it breaking down later because it is not mine.
Lesson of today’s story is to step back and do a cost analysis of renting versus buying. There are many times when you can rent something for much cheaper than buying and then you don’t have to deal with it. Buying is not always the answer and can just help you accumulate junk that you will need to get rid of later. I am not saying that you can’t buy something and it will be better than renting, but just made sure you do the proper comparisons.
Have you ever saved by renting instead of buying? Any downfalls to my methodology?
I want to do a quick shout out to those that have linked to my articles recently. Here is a special thanks to Airline Miles Experts, Common Sense Millennial, Life and My Finances, The Frugal Farmer, Financially Blonde, Enemy of Debt, Budget and the Beach, Brick by Brick Investing, Money Saving Dude, and Money Smart Guides