This is a guest article from Stefanie! She’s trying to find ways to stretch her budget in one of the most expensive cities out there, New York City. A graduate of New York University’s drama and psychology programs at the height of the financial crisis, Stefanie discovered the world of financial planning out of necessity. Thanks for sharing your insight, Stefanie!
When we discuss renting versus buying, it’s typically in the context of the housing market. Today, we’re going to look at it from a different angle. Thanks to the Internet, what you should and can be rented has expanded to include just about everything. Whether you’re looking for an extra income opportunity or you need a specialized tool for a one-time project, be sure to consider all rental opportunities.
Should you rent, lease, or buy a car?
While I would never recommend leasing a car, buying a car (used or new) isn’t always the most cost effective alternative. For those of us who live in big cities, where parking comes at a premium and public transit is readily accessible, short-term car rental may be a better option. The following are some terrific options to get you started:
Relayrides / Getaround. Relayrides and Getaround facilitate person-to-person car rentals. The car owner posts information about their vehicle along with availability and price. When the renter finds a vehicle that suits their needs, they can request a trip time. Once a mutual agreement is made and booked, the renter picks up the car and returns it as discussed. Both sites have a peer review system to rate both renters and vehicle owners.
Zipcar. Zipcar offers car rentals through a membership program. With the flexibility to rent by the hour or the day and many convenient locations, Zipcar is a great option for someone who needs occasional automobile access.
Lyft. Skip the rental altogether and opt for on-demand ridesharing with the touch of a button. Lyft is an app that allows passengers to connect with nearby drivers to get where they need to go. Depending on the city, Lyft rides are donation based or have a set price.
Of course, if you own a car (and you can tolerate the risk of a stranger driving your vehicle or riding alongside you), you can get in on the other side of the equation and bring in some side income.
Should you rent or buy a bike?
As a city dweller, I prefer to use a bike as my primary mode of transportation, but I have yet to take the plunge on buying my own. I opt for the city bikeshare program that saves me from worrying about storage, theft, maintenance, and traveling with a heavy lock and chain all over town.
When I travel out of town, I prefer to scour craigslist for bike rentals rather than the expensive, local retailers. Sites like loanables and zilok also make it easy to find a bike near you. Alternatively, as a bike owner, you can create your own listing and start generating income off your two wheeler.
Should you rent or buy certain clothing?
There are certain articles of clothing that are only necessary for special occasions. Do you really want to spend a fortune on something you’ll wear once? Rather than splurging on an evening gown that you have to store in your limited closet space, you now have the option of renting designer labels.
Rent the Runway. Rent the Runway offers over 50,000 designer dresses and accessories for short-term rental delivered right to your door. If black tie occasions are not a norm, this is a great option for getting glam for a fraction of the price.
Despite the awesomeness that is rent the runway, I have to go for the buy option on my formal apparel. I have between one and three black tie affairs to attend annually. Each of my evening gowns have seen enough wear to cover the cost of a one-time rental. And for the men, no one will bat an eye if you wear the same tux twice. Go ahead and buy one already – just remember to maintain your figure!
What about equipment, tools, and everything else?
In addition to bikes, loanables and zilok allow you to rent just about anything. From Xboxes (which can be up to $500!) to sewing machines to ladders to kitchen aid mixers, determining which items to rent, which to buy, and which to list, will always depend on your specific needs, circumstances, and risk tolerance.
Whatever you’re considering, think about these questions:
- What is your projected cost per use of the item?
- Are you willing to invest the time and energy to make a rental income off your item?
- Do you trust strangers to keep your rental in good condition?
- Do you prefer the convenience of renting?
- Do you prefer the convenience of ownership?
- Lastly, is it worth the cost?
I rented these before and it was a crazy good deal. Made my trip around Chicago so fun. Saved me about $35 in fees I would have spent on taxis. And I got to see the city on my own terms.
Having the freedom to travel on your own terms makes a huge difference.
I feel like renting the dress, although a good idea, is really only great if you care about a brand name dress, otherwise it may be worth it to just buy a dress. I guess it really depends on your needs/budget.
I’ve seen two other interesting concepts in Toronto around renting, one is for kitchen appliances. You can rent stand mixers, food processors or other items that you don’t need on a regular basis and either don’t want to invest in or don’t have the space for it (as many tiny condo dwellers I’m sure can relate too). It would be perfect if you’re trying a recipe that you will probably only make once and don’t need the appliance full time. Another similar concept (possibly run by the same people) is a tool rental. I know Home Depot does it with large tools but this can be smaller tools as well, that you make only need for a certain project. I think this one would be great for people doing home renovations, I believe with both you pay a monthly subscription then rent what you want. This would be great if you’re doing a few months of renovations but don’t need a circular saw all the time.
Great post!
I’m sure there’s probably a huge demand for the kitchen appliances around the holidays. I can’t imagine how the rentals would work in terms of shipping. Kitchen aid mixers are so heavy, they’d probably cost a fortune to mail.
I love the concept of renting, which has gotten a bad rap. Renting is the smart option a lot (dare I say ‘most’?) of the time.
I rent just about everything 🙂
Doing a cost benefit analysis is always worthwhile, as sometimes renting is more economical. Great words of advice. Thanks for sharing.
I don’t have any firm roots anywhere so I don’t like to commit to owning much.
I think before any investment, you should consider all potential alternate options, renting included. These are great alternatives. And I agree with you on the rent the runway!! I find fantastic dresses and thrift shops and TJ Maxx for less than the cost of the rental AND I get multiple uses out of them.
I like the concept of rent the runway, but I do wish it were a bit more affordable.
I like the idea of renting a dress if you really need one for something special. For me that makes sense because unless I wanted to wear the same little black dress over and over, there really isn’t a need for me to buy nice dresses since I need them so infrequently. For my next car I plan to buy with hopefully as little of a loan as possible. And who knows if I’ll ever own a house. Sigh…
For those who don’t have a need for the formal attire often, the rental is a great option.
My mother actually rented her wedding dress, something I didn’t really like the idea of personally, but I think it’s a great way to cut costs on something you’re only going to wear once.