Renting, Leasing, Financing and Buying

Renting

Rental:

A short term agreement or contract under which property is rented from one person to another on an hourly, daily, weekly or monthly basis with rates tending to decrease the longer the rental period.

Why Rent?

Reasons that you may want to rent:

ConvenienceFlexibility"Try before you buy"To avoid locking into a long term lease.Rent to avoid maintenance and repair  responsibilities

Rent for Convenience

If you need a computer, log splitter, a car for a short period of time or only once in a while, it will be cheaper to rent.

Rent for Flexibility

Rental companies usually have weekly, daily, or hourly rental rates and even have discounts to students and seniors.

"Try Before You Buy"

Allows you to test different brands and models of equipment to determine which may best suit your needs without a long term commitment.

Avoid Locking Into a Long Term Lease

A long term commitment can be a real pain if your needs change. Renting allows you an easy way out.

Rent to avoid maintenance and repair responsibilities

Leasing

Leasing:

Is a long-term agreement or contract under which property is rented from one person to another for a fixed period of time, usually a year or more.

Reasons to Lease:

Lease because it is cheaper than renting

Due to the security of long term leases, the rates tend to be lower than straight month to month rentals.

Lease to avoid down payments

On most leases, no down payment is required which means your effectively get 100% financing. This leaves your savings available for other things.

Lease to control cash flow

Although leases tend to be more expensive than financing or outright purchase, they have added benefit of always being the same. This is especially important when leasing real estate over a 5 to 10 year period as you will not have to worry about changing rental rates or finance rates.

Rent or Lease because it is easier

Rental and leasing companies have fewer restrictions. If you have a bad credit rating then it may be your only choice.

Rent or Lease if you don't have the money to buy

Rent or Lease to avoid Obsolescence and Depreciation

Rent or Lease to get immediate Tax Deduction Benefits

Buying vs Financing

Owning by either buying or financing is usually always preferable to renting or leasing unless you have cash flow problems or bad credit.

Reasons to Buy or Finance:

Buy because it is cheaper in the long run

If you have the means to make the purchase than do so, this allows you to avoid interest payments and cash has bargaining power to negotiate a better price.

Finance because it is cheaper than renting or leasing

Buy or Finance to have more control over making improvements to the property or equipment

Lets Compare the cost of Purchasing, Leasing, and Renting a Car

http://honda.ca/civic_sedan

https://www.budget.com/budgetWeb/home/home.ex