Probably everyone at this point has heard of leasing a car instead of buying it. And you’ve surely heard of signing a lease for an apartment. But many people don’t realize there are many items you can lease instead of buy. In many cases, leasing is much more cost-effective than buying. When it comes to items that you won’t want or need long-term, it also often makes more sense.
1. Home Energy Equipment
When you start thinking about the cost of your energy expenses, you may be shocked. Between power and water, a household can spend thousands, if not tens of thousands, of dollars in utility bills. As the cost of energy rises and falls, you don’t know what you’ll pay each month. While there’s not much you can do about water, you have options with power.
Leasing solar panels allows you to use solar panels for decades for a relatively small monthly fee. You can lease a propane tank to store it on your property and pipe natural gas into your home. And if you want to have a backup generator on hand, you can even lease one of those! Each of these leasing alternatives offers you more energy independence and can save you money each year.
2. Power Tools
Okay, so you have the basics — a screwdriver, a hammer, and maybe even a drill. When it comes to doing larger home projects, however, you’re at a loss. Many seemingly simple jobs, like adding baseboards or trim to walls, require costly equipment. Sure, in the old days men and women would saw, hammer, and screw everything by hand. But who has time for that?
The jobs might be simple, but the tools can get pricey. A table saw can run from $200 at the low end up to $600 for a fancy version, but it rents for around $50 a day from Home Depot. A nail gun can cost hundreds of dollars to buy, but it rents for about $40 a day. The same goes for a miter saw, a tile cutter, and many other costly tools. Unless you’re planning to do many major projects or start a handyman business, it’s usually a better deal to lease.
3. Trucks
You’ve likely had to use a moving truck at one time or another. Maybe you’ve had friends lend you a pickup truck for a run to the dump or to pick up a large order from the hardware store. So, you’re thinking you should just buy a pickup to have on hand when you need it. Not so fast! Pickup trucks are not only expensive to buy, but they are also expensive to fix.
If an axle goes out on your truck, you may be in for thousands in repairs. If you burn out the engine, you might as well kiss the truck, and your thousands, goodbye. And that’s not even to mention the cost of gas for an 8-cylinder truck! Unless you’re actively using the pickup truck weekly for work, you’d likely be better off renting or leasing. You can rent a pickup truck from U-Haul for quick jobs for around $20 a day.
4. Musical Instruments
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You have kids, and you want to ensure they have a rich life that includes the arts, music is a wonderful way to introduce kids to the arts and get them involved. Every time they pick up an instrument, they get hands-on experience that contributes to their development. But everyone who’s raised kids knows that they change their minds — a lot. Today they want to play the guitar; tomorrow it’s the violin.
You’re not made of money, and musical instruments can get expensive. What can you do? You can rent or lease. Look into your local music stores for options to either rent the instrument or lease it to own. When you rent, you give your kids a chance to experiment with their likes, dislikes, and abilities. When you lease, you can often pay monthly payments and eventually have the option to buy or return the instrument.
5. Handbags and Jewelry
Finally, who doesn’t want the latest Gucci or Prada bag or the finest jewelry for this or that fabulous gala? It does feel amazing to be draped in gems and carry fashion accessories. But it often costs more than a paycheck to look that good and be noticed by others. Furthermore, what do you even do with designer bags and jewelry when you’re not wearing it a couple of times a year?
For those on a budget but still feeling fancy, you can often find the latest designs for rent or lease. You can essentially borrow a designer bag for the night for a small fee compared to what you would pay to buy it. With jewelry, look for the option to rent or lease. When you lease jewelry, it’s like the situation above with instruments. You’ll pay a monthly fee and then have the option to buy it outright or give it back.
The greatest thing perhaps about renting or leasing items instead of buying them is having options. Sometimes, you will decide to purchase the tool, vehicle, or jewels for yourself. But you won’t know if you want it until you have it in your hands and take it for a test drive. Other times, like with energy equipment, it just makes more financial sense to lease than to buy. All you have to do now is shop around for options.
