Saturday, July 10, 2010
Renting vs Buying
At some point, it becomes economical to buy a car instead of renting one. This economy is on a sliding scale based on what kind of car you would consider drivable. My friend is heading back to Minneapolis for a week-and-a-half, and he plans on paying about $500 for his rental car. A quick scan of Craigslist gives him some $500 options. He could ride around on a motorcycle for that week, and then when he moves back to Minneapolis in October, there's a free motorcycle waiting in the garage for him. Or if he spends just a little bit more -- say the amount it would cost to add insurance to his rental car for that week-and-a-half -- there's at least one sweet V8 Jaguar he could get into. Plus if he crashes one of the cars he bought, then he wouldn't have to worry about paying the rental agency for it. It's hard to believe anyone still rents cars these days.