Why do people rent things from places, when it works out cheaper to buy them
By joystick
@joystick (1675)
December 3, 2010 7:25pm CST
I am a person that hates to have to keep paying people and places for things that will never be mine.I can say that all the things in my kitchen i own as it was cheaper to buy them rather than renting them, plus after a year of buying them they are mine and i have 5 years insurance.People even rent tv and ariels,also digi box.The rent on these things are so expensive and you could buy two ariels for the price of the 6 months rental.
1 person likes this
10 responses
@lelin1123 (15595)
• Puerto Rico
4 Dec 10
Yes I'm with you its totally a waste of money. If you keep paying for something that is never going to be yours its a waste. Its better to save your money to buy it for yourself in the future. I will never understand the concept especially when it comes to furniture and TV's. I understand to a point about renting an apartment because people can't always afford to buy a house but anything else its a waste and makes not a bit of sense to me.
@manleyjoe (1597)
• United States
4 Dec 10
So renting is a total waste of money? I have owned two homes at different times in my life and I tell you that renting is far better deal. With taxes and insurance and upkeep. With renting you do not have these costs.
Having experienced both I say that renting is by far the better deal for me. But then I am past the age of wanting to do the upkeep on a home so let the landlord do it.
@CynergyDiva (805)
• Canada
4 Dec 10
Sometimes it's just the same as not being able to afford a house for some people. If they don't have several hundred dollars in their pockets for a t.v. or a sofa, but have 15$ each month, it's easier to just go ahead and rent. It may take so long to save for these things that by the time you get the money, the prices have gone up. It'd be pretty dismal to live in a place with no furniture or even a t.v. for so long a time.
xoxo
Cyne
@joystick (1675)
•
4 Dec 10
I am not on about houses if you were to read the discussion that i started again you would see that i am on about things like tvs, cookers, washing mashines, dryers, tv ariels, digi boxs.Please read the discussion as it do not say property, houses, buildings etc
1 person likes this
@MakingCents (743)
•
4 Dec 10
Some people rent because they can't afford a big payment and they don't qualify for financing. I personally don't rent anything if I can help it. It's also why I never lease a car. To lease a car you have to put, say, $2,000 down, then you make monthly payments on the car, and then when it's over you have no car. Instead by buying, you maybe put $2000 down, and make monthly payments but when it's over you have equity. You have the car you own to hopefully put as a downpayment for the new car.
@Avetre (26)
• United States
4 Dec 10
Your car, new or used, will never have equity. Equity is how much more your property is worth now than when you bought it, and cars drop in value the instant you finish signing the paperwork. Trading a car in might cover a small fraction of the down payment on a new car. Also, buying a car means paying to keep it running, which eventually costs more than just buying another car. By the time a leased car has to have any repairs, it has long since been sent to the used car lot.
Frankly, renting makes sense anytime someone expects to want a new model by the time they've paid off the old one, or if they expect to be using their rental for a relatively short time. One example would be someone who rents a huge TV for football season, and then returns it and switches back to their smaller TV for the rest of the year. They can watch their games on the best and newest screens without buying a new TV every year.
@LadyMarissa (12148)
• United States
4 Dec 10
Saving money by paying less than renting works well for some people. However, others do better when paying by the week even if it means paying more!!! Some people were not born with the self discipline to balance their finances on a monthly basis. So, they do better to say pay $40/week than if they had to save up $100/month. I know it doesn't make sense to those who don't have the problem, but it does to those who choose to rent. I have been on both sides of this situation. I knew it was cheaper to pay by the month or buy flat out. However, I didn't always have the funds to pay flat out & by the time my payment came due at the end of the month, I didn't always have the funds left in my account. It took me a long time & a lot of work to get myself to where I could handle my finances as I should!!!!
@joystick (1675)
•
4 Dec 10
I think that a few people think that they are getting a better deal as they think that they can upgrade, also tn and been on both sides as wehink some how they are saving money, i have seell and i am now an owner of a washing machine, dishwasher, fridge freeze, cooker, dryer, 5 tvs and lots of other things that i now own that if i wish i can buy more of the things and that it will work out alot less by paying weekly/ monthly to own rather than rent.
@CynergyDiva (805)
• Canada
4 Dec 10
For me it depends on the item. I used to always rent t.v's and vcr's because when new models would come out, I could just trade up.
Some people do this with cars too. It's a good way to have a new car every few years. When you buy a car, you're pretty much stuck with it until you pay it off. If you try to trade it in for a new one, you never get a good price for it, so you might as well lease and get a new one every couple of years, as the payments are roughly the same.
xoxo
Cyne
@joystick (1675)
•
4 Dec 10
I think if people are up grading things after two years then they may have paid the same amount of money monthly in buying them, that way they would at least have some cash back as well as that some things you are able to pay less per week to buy them than the rent per month to rent them.I see it like it is money down the drain.
@jugsjugs (12967)
•
4 Dec 10
I think that there are alot of people that throw their money away on renting things.I know someone that pay out over £100 a month on tenting things and to me that is a serious amount of money to be throwing away.It seems a better idea to buy things as once they are your and have a 5 year insurance on them you know that even if they go wrong then they have to be put right.My large freezer is still working well after nearly 15 years, think how much it would have cost me over all of those years if i had rented it.
@joystick (1675)
•
4 Dec 10
That works out over £1200 per year.They must be nuts to throw that money away like that and still can not say that they own the things that they are renting at that cost each month.£100 is alot of money per month, they must have a ggod paying job to be able to afford that amount.
@joystick (1675)
•
4 Dec 10
All i can say is that i have helped people to pay less per month as well as they own the items that they have paid less per month for than they were paying to rent.Now if they want sell the item and get a newer up grade they can, as they will get cash if they sell their things.
@smileonstar (4007)
• United States
4 Dec 10
HI,
It is just depend on their situation... some people would renting cuz they dont want to keep it in a long run, they want to change something new. I understand that it is expensive on renting but these people never thing of the disadvantage... all they know is monthly payment is sound a lot cheaper than buying it :)...
Such as my friends, when they came to work in california. they never want to buy anything cuz it will be hard for them to move all those back home, so they rent TV, Soda and computer ...etc.
@joystick (1675)
•
4 Dec 10
Even if you were to buy something rather than renting it, then as it is yours you have the chance to sell what ever it is and have something to show for all the money that you have parted with for that item.I can not see how it works out cheaper to pay rent at the same cost which it works out to buy it per week or per month.
@Nadinest1 (2016)
• Canada
5 Dec 10
...because it's easier to rent things than apply for credit....when you have bad credit, or no credit at all.
There is a reason why these people don't buy through the finance company....it's because they can't....and renting at a higher interest rate is their only option.
I have rented nothing in my life.
@picjim (3002)
• India
4 Dec 10
I don't know about your place,but here many people would like to utilise their money in a business and earn higher return than spend the same on high rent.Though i can't say the same for household appliances.At your place it appears they haven't got their calculations right.I can only say they are doing it because they don't have sufficient capital to invest in the first place.This is only my assumption.
@joystick (1675)
•
4 Dec 10
All the items in my house like the cooker, dishwasher, fridge freezer and tvs, are all bought and paid for, that is thanks to me buying them weekly through a catalogue that a friend has let me buy from over the years.I have not got to look for money each month for rent, like others also it works out cheaper to buy the items weekly than renting them.So when i was buying them with insurance it was cheaper than the rent i would have been paying on them, plus i can sell them if i want to change them and still have more money.
@nangisha (3496)
• Indonesia
6 Dec 10
Hi Joystick!.
I think many people don't have patient to wait until they have enough money to buy it. Most of people want make every thing so easy for them to reach their comfort level. I think thats why this renting company keep on growing because they understand people psychology.
We don't have this kind company at my country so no people renting. I personally don't like to rent a thing like TV or furniture. I prefer to save my money and buy it when it already reach the amount. Honestly we can also get it with credit but I prefer buying it cash because it will be much cheaper.
