Handyman Wednesday #9: Rent vs. Buy

Today, we’re thankful for our niece’s.  We love them so much and it’s awesome to have 2 beautiful girls to spoil.  We love you Isabella and Emma!!!

The age old question: when is it smarter to spend the money and buy a tool, or when it’s smarter just to rent it?  With a tool rental location in most towns and almost all Home Depot’s, renting tools has become a viable option for homeowners.  Here’s my little guide for when to buy vs rent.

Questions to ask yourself:

1. How much does the tool cost?

2. How much does the rental cost?

3. Will you use it again in the next 3 years?  If so, how many times?

4. What maintenance does the tool require?

5. How much storage space does it require?

Analysis:

My rule of thumb for all tools in the Rent vs Buy paradox is 3 years.  To put it simply, if the cost of renting the tool every time I need it for the next 3 years exceeds the cost of the tool, then I’ll buy it.  Here is an example of what I mean:

Formula for Renting Over Buying:

Cost of Rental x Number of time you rent that year x 3 years = Total Cost of Rental < Cost of Buying the Tool

Pressure Washer Example:

Cost to buy: $250

Cost to Rent: $30

Times used Annually: 3

Number of Years in Analysis: 3

Total cost of renting: $270

Decision:

Cost of Rental x Number of time you rent that year x 3 years    =  Total Cost of Rental

$30             x                          3                                       x      3           =  $270

Since the cost of buying ($250) is lower than the cost of renting ($270), you should BUY!!!

Jackhammer Example:

Cost to buy: $1100

Cost to Rent: $70

Times used Annually: 1

Number of Years in Analysis: 3

Total cost of renting: $210

Decision:

Cost of Rental x Number of time you rent that year x 3 years    =  Total Cost of Rental

$70             x                          1                                       x      3           =  $210

Since the cost of buying ($1100) is higher than the cost of renting ($210), you should RENT!!!

It is always important to remember maintenance.  While electric tools require little maintenance, gas powered tools need to be ran every couple months, and it is bad to leave the same gas in them for extended periods.  Also, if you’re limited in storage, renting can help you save space!

Things to rent commonly:

1. Truck (much cheaper than a car payment)

2. Post-Hole Digger

3. Jackhammer

4. Tile Saw

5. Tiller

6. Drain Auger

7. Carpet Cleaners

8. Paint Sprayer

Again, all of these depend on your usage.  Use my formula above and you will instantly know your best option.  And don’t forget, borrowing from a friend or neighbor is usually free (may cost you an adult beverage), so try that first!

Have you rented tools recently?  Which ones?  Have you ever bought a tool then regretted it because it never gets used?  Do you have abetter name for my formula that “Formula for Renting Over Buying”.  I’d love to change it!

Advertisements

3 thoughts on “Handyman Wednesday #9: Rent vs. Buy

  1. Pingback: A Little Year in Review: 2012 | Little House. Big Heart.

We'd love to hear what you have to say!

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s