Knowing when to rent, borrow, or buy can save you a lot of money. If you only use something once, always consider renting first. Here's some other instances where you should consider one over the other.
"Buy it for life" has become a rallying cry for the frugal-minded in 2017. Consumers are embracing the value of craftsmanship, opting to spend a little more for items they know will last. Most of the time, that's a great sentiment.
While it's nice to own quality products that won't fall apart, sometimes buying is a waste of money - especially when you can't rent or borrow the same thing at a fraction of the price. For example, do you really need to buy a pricey tuxedo you may never wear again?
Most people know it's better to rent a tux, but there are more options to rent and borrow than you may realize. Here are some of the best.
Books, movies and video games
According to the Pew Research Center, millennials are more likely to use the library than any other generation. Half of all millennials have visited a library within the past year. That's because they know buying the latest hardcover at $30 a pop doesn't make sense if you're only going to read it once.
I visit my library at least a couple times a month and only buy books I know I'll reread several times or can expense as part of my business.
Nowadays, libraries even let you borrow e-books. If you have a laptop, tablet or e-reader you can take advantage of this free perk. I also check out movies and TV shows instead of renting them on demand. You may have to wait a week or two to check out popular titles, so try to get on the waitlist as soon as possible.
The only place where a library fails is video games. Instead, you can rent them for three dollars a day through Redbox. Since new games cost about $60, renting them is a good idea if you can't afford to buy the latest NBA 2K18 or want to make sure it's worth your money first.
Tools and equipment
My dad told me how, after becoming a homeowner, he went on a shopping spree to buy all the gear he'd need to become a bona fide handyman. Most of the equipment he's used over and over again, but more than a few expensive items have hardly been touched in almost a decade.
Instead of buying all those gadgets, he would have been better off borrowing from a neighbor and only buying something he used more than once. Home improvement stores like Home Depot or Lowe's also allow you to rent specialized tools that your next-door neighbor might not have, like a power washer, excavator or auger.
Formal wear and cocktail dresses
Black-tie events might be a rare occasion for most, but if you do need a fancy dress you're better off renting. Formal dresses from Rent the Runway start at $30, far less than what you could find at a department store. Plus, when you order the Rent the Runway, they'll send you two sizes so you're not stuck with an ill-fitting outfit.
While most men know they can rent a tux for a black-tie event or wedding, many aren't aware they can also rent regular suits. A new suit can cost anywhere from $200 to $1,000, while a quality suit rental can be as little as $100.
Sports and hobbies
Every time my dad decides he wants to upgrade his DSLR lens, he rents it from a local camera store. It's pricey - between $25 and $90 a day - but it lets him try out the lens without committing to the full price, which can run up to $1,000.
Stores like REI also rent out camping equipment for people who want to explore the great outdoors without buying a tent, sleeping bag, and other accoutrement. Prices and availability depend on your vacation.
If you're trying out a new hobby, like photography or skiing, see if you can rent the equipment first. Yes, it won't be the same as having your own, but it's better to find out now that you don't actually like spending all day on a freezing cold mountain before you've spent $1,000 on custom-made skis.
Transportation
In 2017, many people rely on Uber or Lyft to get around if they don't have a vehicle and can't rely on public transportation. But if you have a full day of errands to run, using a rideshare service doesn't make a sense mathematically. Instead, use your local Zipcar to rent a car, which usually costs about $10 an hour or $80 for the whole day.
Need a bigger vehicle to pick up some furniture that you found for cheap on Craiglist? You can rent a pickup truck from U-Haul for about $20 for four hours - more than enough time to grab that free dresser you saw on the side of the road. Home improvement stores like Lowe's and Home Depot also rent work trucks for an hourly rate.
Office space
Most small business owners want to have a separate work area outside their home, but leasing office space for a year can be a risky decision for a new CEO. Instead, use a co-working space where you can sign a month-to-month lease on a desk or private room.
When rentals don't make sense
Stylist services like Le Tote and Rocksbox send a box full of clothes and accessories women can wear, buy or return. Prices range from $21 a month for Rocksbox and $49 for LeTote.
While renting a formal dress a couple of times a year makes sense, renting everyday work clothes and jewelry is unnecessary. For the cost of renting, you can buy one great item (or two if you're a savvy shopper).
If you're on the fence about renting or buying, just do the math. Look at the price and length of the rental, then compare it to the price of buying the same item. Estimate how many times you foresee needing to rent the item in the future, then decide which option is the better value.
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