Factors to Consider: Buy vs. Rent Furniture

Factors to Consider: Buy vs. Rent Furniture

Deciding whether to rent or buy furniture can be extremely tricky and depends on the customer’s financial and living situation. Listed below are the pros and cons of renting furniture as opposed to buying them.

Pros of Renting Furniture/ Cons of Buying Furniture

Renting is more cost-effective than buying furniture
When a person is looking to either buy or rent furniture, he or she must also factor in the cost of maintenance of the depreciating value of the piece of furniture. On the other hand, even though the same costs apply to a piece of furniture that is rented, it would ideally entail lower costs accruing due to the temporary rental agreement.

Much more sensible for temporary living arrangements
If the living situation is temporary, for example, being a college student, or a temporary employment opportunity, it is easier to acquire the furniture on rent for a certain period of time rather than going through the hassle of buying the furniture and having to sell it off later.

Affording experimentation at the lowest possible cost
Renting out furniture for short time periods ensures that one can experiment with different types of furniture over time. This makes the accommodation more visually pleasing, less monotonous and helps to find the best piece of furniture suited for the house via trial and error.

Flexible payment plans
Customers can choose if they want to have a monthly, half-yearly or annual payment plan. Buying furniture usually entails that a sizeable chunk of savings is lost or it is bought on credit which affects future transactions. These periodic payment plans bring a semblance of balance in a person’s financial position.

Pros of Buying Furniture/ Cons of Renting Furniture

Damage to furniture
Most furniture rental agreements contain a clause which provides that in the event the furniture is damaged, the customer will have to bear the cost of either the whole piece of furniture and buy it off the agency or will have to pay for its repair. In the event that such damage occurs, it might be more cost-effective to buy furniture instead.

May affect credit scores
These monthly payment plans are better than buying furniture only if the payments are done on time. Late payments can have a drastic effect on credit scores.

Factoring in interest rates
The amount to be paid per month might be low, however, interest rates keep climbing and can dent the customer’s financial position. The best way to decide whether to buy or rent furniture is to enter into a cost-benefit analysis and factor in interest rates and the time period to gauge whether it costs more to rent or to buy furniture.

Additional costs
These additional costs are not just monetary but also include time and peace of mind. The payments due are constantly looming over the customer’s head. The time one needs to invest in order to maintain the furniture is extremely stressful. One cannot ignore the fact that delayed payments can be followed by calls that can be harassing.

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