When Renting Doesn't Make Sense

The most costly items to rent are:

Furniture. Renting a Klaussner couch, love seat and coffee table can run you as much as $45.00 per week. Rental centers also have a minimum number of weeks you are obligated to pay, depending upon the contract. If the agreement were for 78 weeks you would end up paying $3,500 for the privilege of using the furniture for 1-½ years. The same set of furniture can be purchased brand new for approximately $1600 to $1700. You end up paying twice as much and you don’t even get to keep the furniture.

Computers. If you own a business it can be cost effective to rent as opposed to buying. Upgrades can take place more often and many come with tech support.
A Dell computer rents for around $40.00 per week and the terms are usually 62 weeks. This adds up to $2480 for an item that would cost approximately $1100 to purchase outright.

Televisions. A 50-inch Toshiba TV costs approximately $35.00 a week to rent with a term of approximately 2 years (104 weeks). This calculates out to paying $3640 for an item that you can purchase new for around $1200.

There is no reason for a person to spend their hard earned money in such a wasteful manner. Search Craig’s List, used furniture stores or Goodwill for furniture and televisions. Talk with family and friends to see if they are planning to upgrade to a newer computer and ask if you can buy their old one.
If your heart is set on buying new, try setting aside $35 to $40 per week and in seven to eight months you will have enough money to buy a 50’ TV, computer or couch and loveseat.



Denise Wing, C.E.O.
Certified Mortgage Lender
Academy National Mortgage Corporation
303-987-0622
dwing@academynational.net

WHEN RENTING MAKES SENSE

There are some items, if used on rare occasions, would be better to rent as opposed to purchasing. Below is a list of four items I believe you should consider renting.

Pickup trucks. Unless you work in an industry where owning a truck is imperative, buy a fuel efficient car and rent a truck on the rare occasions you really need one. This will also get you off the hook with family and friends who call on you to haul their things instead of renting a truck for themselves.

Vacation homes. Once the novelty of owning your own piece of paradise near a quiet lake or sun-drenched beach wears off, the reality of keeping up two homes will finally set in. With the home setting vacant for long periods of time you run the risk of damage from undetected leaks, infestation and vandalism.
Your options on choosing a place to vacation will become extremely narrowed and you could end up feeling obliged to spend more time there in order to justify purchasing it.
Leave the worry and expense of keeping up a vacation home to others and rent from them. This will also free you up to choose any area you and your family decide to vacation in without guilt.

Things used annually. Many people have a garage or basement full of expensive tools they use once a year or less. Things such as lawn aerators, paint sprayers, power washers and Rota-tillers, just to name a few, are more economical to rent than purchase.
Items such as a carpet cleaner or sewing machine can be jointly bought and shared with a friend or family member. Swapping with a neighbor can also be an option; you buy the sewing machine and she can buy the carpet cleaner.



Denise Wing, C.E.O.
Certified Mortgage Lender
Academy National Mortgage Corporation
303-987-0622
dwing@academynational.net