Let’s take a look at renting appliances such as a water heater, a water softener, a furnace and an A/C. Personally, I like to buy and own my appliances as I found that, with care and regular maintenance, they last much longer than the conventional wisdom indicates. For instance, I have an A/C unit that runs like a charm and is 29 yrs. old.
Water heaters are to most common appliance rented. The rent runs at about 30/35 dollar per month. If you were to purchase one, you can get a 227L/50-gal heater for $930.00.
Should you need to buy out a water heater, my most recent client’s experience was $895.00 for a unit that was 9 years old, perhaps even 11. Let’s go with what we know for sure and call it 9 yrs. old. The rent was $34/mth so the rent paid was $3,672. Add to that $895 buy-out, the heater cost a whopping $4,567. That’s equivalent to you purchasing 5 water heaters over 9 years.
What about water softeners. Purchasing a reasonable quality softener that is estimated to have a life of 20 years will cost you about $670.00 (keep in mind that the usual problem with a softener is that the beds in the brine tank get clocked over time but can be replaced for a reasonable fee). You can rent them for about $10 per month, $120/year, renting over 20 years you paid $2,400.00 for your softener.
A furnace and A/C units are even crazier, let’s leave them out for now.
The Pro of renting: no cash outlay, low monthly cost, convenience, many come with a service contract, not all. Your choice. You can purchase on your Line of Credit if you don’t have cash and you will pay it off twice as fast, I believe.
Yes buy or No? You will save a great deal of money by owning.
Please not the above prices do not include installation and HST.