What if I told you I was paid hundreds of dollars to own a garden tiller for a year? Or that I was able to borrow a multi-thousand dollar industrial chipper shredder for several months for free? Or that I was also paid to own and use jack hammers, cement mixers, compound miter saws, chainsaws, and many other items? Not only are each of these statements true, but you can do this too and it’s not just restricted to tools, though that’s what I’ll talk about the rest of this post.
There’s no doubt in my mind that having the right tool for the job not only makes the task go faster and at a higher quality, but sometimes there may be no other way to get the job done safely. Specialty tools or other specific use items are made for a reason, but often times the price to acquire them new can be cost prohibitive. You can also rent many of these types of items from stores from Home Depot to United Rentals, but the hourly, daily or even weekly cost can add up quickly.
Enter the Craigslist Reverse Rental Program: Buy at a good price → Use for as long as you need it → Sell for as much or more than you paid
The idea behind this program is very simple. Like most of the principles that we believe at Spend This, Not That, it begins with being smart about spending your money. Rather than going out and overspending on a new item that serves an important, but very specific purpose, if you are patient, you can find a quality used item at a significant discount.
I know it’s hard, but resist the urge to buy the first one you see. This time will allow you to do a few different, yet very important things:
- Understand the speed of the market Before you jump in and make a puchase, it’s important to get a better feel for the market for the used item you are looking for. This will let you identify how quickly items are moving.
I recently purchased a tractor, but this was one of the hardest purchases that I’ve ever made. It was unbelievable how quickly the better posts went. One time, I messaged a woman on a tractor 20 minutes after she posted it and was already too late. It was a great deal, but it really opened my eyes to how active the used tractor market was.
On the positive side, when you are ready to sell, a strong market means that you can likely get your money back much quicker. - Identify your target price This tip is related to the first, but is more price focused. In order to be successful with the reverse rental program, you need to make sure that you don’t overpay during the “Buy” phase. By gathering some additional information by waiting, you get a better understanding about what’s a good deal, a great deal, or a really bad deal.
If there are different brands of similar items, don’t forget to account for that. When I was looking for my tractor, there was definitely a bit of a price premium for Kubota’s, but that should also translate into resale value.
If you are using search parameters to limit your result, you may want to set them a bit higher as you may be able to negotiate a bit.
- Find and buy the right item Now that you know what the used market looks like and have a better idea about price, now comes the fun part… actually getting the thing you’ve been eyeing.
I personally like to set alerts for a couple different keywords and price ranges so that I get notified when a new item I’m targeting comes up for sale. This will allow you to be first in line on the best deals. It probably goes without saying, but make sure you throughly inspect whatever you’re buying. As the saying goes, if something seems too good to be true, it probably is.
The next part is self-explanatory; this is when you get to take advantage of your research and do a better, faster job because you have the right equipment.
My most recent success was with the industrial chipper. We’ve been clearing trees to build our new house and have had over 100 trees to get rid of. Burning them would have taken a long time and be bad for the environment. It would have cost thousands of dollars to pay someone to shred them all for me. However, thanks to the Reverse Rental Program and some hard work, I was able to get rid of all my trees and also get several huge piles of mulch for FREE!
After you finish your task, it’s time to complete the last step in the Reverse Rental Program: passing your item along to the next lucky person. Maybe they are a fellow temporary owner. Maybe they are a professional looking to love it for life. To you, it doesn’t matter too much as long as the cash is green.
Here’s another time where knowing the market can ensure that you come out on the right side of the equation. Price your item appropriately and with a bit of patience, you can get your money back or even make a little profit.
Don’t settle for buying a specialty item new only for it to collect dust on your shelf. Next time, use the Reverse Rental Program as you Spend This, Not That!