Author Topic: Rent Your Tires...  (Read 7129 times)

Jamesqf

  • Magnum Stache
  • ******
  • Posts: 4048
Rent Your Tires...
« on: June 08, 2013, 11:26:34 PM »
Article from the LA TImes:
Quote
When the tires on their Dodge Caravan had worn so thin that the steel belts were showing through, Don and Florence Cherry couldn't afford to buy a new set.

So they decided to rent instead.

The Rich Square, N.C., couple last September agreed to pay Rent-N-Roll $54.60 a month for 18 months in exchange for four basic Hankook tires. Over the life of the deal, that works out to $982, almost triple what the radials would have cost at Wal-Mart.
http://www.latimes.com/business/autos/la-fi-rent-a-tire-20130609,0,1748795.story?track=lat-pick
« Last Edit: June 09, 2013, 07:35:20 AM by Sparafusile »

MrsPete

  • Magnum Stache
  • ******
  • Posts: 3347
Re: Rent Your Tires...
« Reply #1 on: June 09, 2013, 07:04:44 AM »
I was out shopping with a friend one day, and we saw a new "Rent Tires Here" store.  I was confused by why anyone would want to rent tires, and she had to explain to me that it was for people who couldn't pony up the money for basic car maintenance.  The thought was so odd that I couldn't figure it out on my own. 

Jamesqf

  • Magnum Stache
  • ******
  • Posts: 4048
Re: Rent Your Tires...
« Reply #2 on: June 09, 2013, 11:58:06 AM »
Yeah.  I mean, if you can afford to pay say $10/week starting from the time you need new tires, why can't you afford to put $5/week in a tire replacement fund before you need them?

Hamster

  • Pencil Stache
  • ****
  • Posts: 621
Re: Rent Your Tires...
« Reply #3 on: June 09, 2013, 01:10:01 PM »
Wow. You'd be better off putting them on a credit card at >20%.

Jamesqf

  • Magnum Stache
  • ******
  • Posts: 4048
Re: Rent Your Tires...
« Reply #4 on: June 09, 2013, 02:23:26 PM »
And I keep getting these 0% interest credit card offers, too: I think the latest is up to 23 months.

Rich M

  • Stubble
  • **
  • Posts: 191
  • Location: Boulder, CO
  • Fortune Kookie
Re: Rent Your Tires...
« Reply #5 on: June 09, 2013, 10:14:29 PM »
wow, can't resist the Schadenfreude here.
-Ricardo

Self-employed-swami

  • Handlebar Stache
  • *****
  • Posts: 1098
  • Location: Canada
Re: Rent Your Tires...
« Reply #6 on: June 09, 2013, 10:23:08 PM »
Wow.  Reminds me of Rent a Center.  I couldn't fathom why anyone would want to RENT used furniture, when you can buy used furniture from kijiji/craigslist.
A small business-owning SWAMI working herself towards FI.

dragoncar

  • Walrus Stache
  • *******
  • Posts: 7298
  • Registered member
Re: Rent Your Tires...
« Reply #7 on: June 09, 2013, 11:22:12 PM »
wow, can't resist the Schadenfreude here.

Normally I love good schadenfreude, but in this case it just makes me sad.  The people who do this are probably the same type people that get payday loans.  When I take joy in other's failures, I usually reserve it for the failures of peers/competitors.

BlueMR2

  • Handlebar Stache
  • *****
  • Posts: 1787
Re: Rent Your Tires...
« Reply #8 on: June 10, 2013, 09:13:52 AM »
All I can think is that I've missed a wonderful business opportunity here.  It just never occurred to me that renting tires would ever be at thing!

Forcus

  • Pencil Stache
  • ****
  • Posts: 717
  • Location: Central Illinois
Re: Rent Your Tires...
« Reply #9 on: June 10, 2013, 10:55:13 AM »
All I can think is that I've missed a wonderful business opportunity here.  It just never occurred to me that renting tires would ever be at thing!

Yes I wonder if I can start a Midwest franchise of this emerging business!
Note, these opinions are from someone who is half-mustachian at best. Please consider my comments in that light.

ScottEric

  • 5 O'Clock Shadow
  • *
  • Posts: 62
Re: Rent Your Tires...
« Reply #10 on: June 10, 2013, 11:08:32 AM »
Too sad for Schadenfreude!

Jamesqf

  • Magnum Stache
  • ******
  • Posts: 4048
Re: Rent Your Tires...
« Reply #11 on: June 10, 2013, 11:17:14 AM »
Wouldn't call the comments schadenfreude, since I doubt most of us are taking any real joy in other people's failures.  At most, they serve as examples of what not to do.  I'm sure most of us would be happier if the world's Stupidity Quotient decreased a good bit.

strider3700

  • Pencil Stache
  • ****
  • Posts: 516
  • Location: northern BC
Re: Rent Your Tires...
« Reply #12 on: June 10, 2013, 11:41:36 AM »
Renting of almost anything for long periods of time usually makes very little sense financially but it's becoming more and more common.   I recently found out you can rent hot water heaters as well. 

It's funny that the only thing I can think of worth renting long term could very well be a house.  That's probably just a quirk of the insanely over inflated market though.  You can rent a house for 1/2 what the mortgage/taxes/... would cost you.

dragoncar

  • Walrus Stache
  • *******
  • Posts: 7298
  • Registered member
Re: Rent Your Tires...
« Reply #13 on: June 10, 2013, 12:13:41 PM »
Wouldn't call the comments schadenfreude, since I doubt most of us are taking any real joy in other people's failures.  At most, they serve as examples of what not to do.  I'm sure most of us would be happier if the world's Stupidity Quotient decreased a good bit.

Yeah except for the commenter that explicitly mentioned shadenfreude

noob515

  • 5 O'Clock Shadow
  • *
  • Posts: 82
Re: Rent Your Tires...
« Reply #14 on: June 10, 2013, 12:17:46 PM »
I was blown away when I saw a tire rental place a few months ago.  But the place was also renting rims too, so I assumed people were renting the tires to go with the rims that they couldn't afford to buy outright...

At least with furniture, I understand people may rent it while they're staging a house, or if they know they're only going to be in a location for a short temporary stay (i.e., military).  But tires?  It just makes no sense to me.

mpbaker22

  • Handlebar Stache
  • *****
  • Posts: 1095
Re: Rent Your Tires...
« Reply #15 on: June 10, 2013, 02:21:17 PM »
Renting of almost anything for long periods of time usually makes very little sense financially but it's becoming more and more common.   I recently found out you can rent hot water heaters as well. 

Except a living space, but even that might be just because it's harder to find a small living space with the option to own.

Jamesqf

  • Magnum Stache
  • ******
  • Posts: 4048
Re: Rent Your Tires...
« Reply #16 on: June 10, 2013, 10:47:09 PM »
But the place was also renting rims too, so I assumed people were renting the tires to go with the rims that they couldn't afford to buy outright...

You know, that makes even less sense than renting tires.

dragoncar

  • Walrus Stache
  • *******
  • Posts: 7298
  • Registered member
Re: Rent Your Tires...
« Reply #17 on: June 10, 2013, 11:53:53 PM »
I've rented tires before.  On the car I was renting.

ScottEric

  • 5 O'Clock Shadow
  • *
  • Posts: 62
Re: Rent Your Tires...
« Reply #18 on: June 11, 2013, 07:00:25 AM »
But the place was also renting rims too, so I assumed people were renting the tires to go with the rims that they couldn't afford to buy outright...

You know, that makes even less sense than renting tires.

Now THAT is ripe for schadenfreude.

Mr Mark

  • Handlebar Stache
  • *****
  • Posts: 1029
  • Location: Detroit, MI
  • Achieved Financial Independence summer 2014. RE'18
Re: Rent Your Tires...
« Reply #19 on: June 11, 2013, 08:17:33 AM »
Great link. It's just yet another example of how people keep themselves poor by living paycheck to paycheck while in debt up to the eyeballs and having less net worth than the day they were born.

This is the sort of pseudo-loan that makes credit cards look like a bargain at  an APR of *just* 29%!

Payday loans, car title loans, store credit, credit cards, ....  it would be interesting to see the average amounts of aftertax income people pay in interest in the USA...

Quote
http://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/

Current as of June 2013
U.S. household consumer debt profile:
Average credit card debt: $15,216
Average mortgage debt: $148,443
Average student loan debt: $32,054

In total, American consumers owe:
$11.19 trillion in debt   A decrease of 1.5% from last year
$849.8 billion in credit card debt
$7.9 trillion in mortgages
$992.7 billion in student loans   An increase of 7.% from last year
« Last Edit: June 11, 2013, 08:19:06 AM by Mr Mark »
Mr. Mark

dragoncar

  • Walrus Stache
  • *******
  • Posts: 7298
  • Registered member
Re: Rent Your Tires...
« Reply #20 on: June 11, 2013, 10:33:38 AM »
Good point mr mark, this is probably just a way to avoid usury laws.  I'd hate to be the guy who tries to repo tires, a hot water heater, etc.

BlueMR2

  • Handlebar Stache
  • *****
  • Posts: 1787
Re: Rent Your Tires...
« Reply #21 on: June 11, 2013, 12:02:36 PM »
It's funny that the only thing I can think of worth renting long term could very well be a house.  That's probably just a quirk of the insanely over inflated market though.  You can rent a house for 1/2 what the mortgage/taxes/... would cost you.

I hear that said a lot, and it may be true some places, but certainly isn't here in my area.  Rentals are running a good 25% MORE than the mortgage/tax/bundle does.  I really don't know why so many people are renting houses around here, it's lose/lose.  I figure some people may be in the area temporarily, etc, but the number of rentals is absolutely astounding.  My neighbors rented the same house for 28 years before finally moving out and buying their own!

Jamesqf

  • Magnum Stache
  • ******
  • Posts: 4048
Re: Rent Your Tires...
« Reply #22 on: June 11, 2013, 01:09:54 PM »
Current as of June 2013
U.S. household consumer debt profile:
Average credit card debt: $15,216
Average mortgage debt: $148,443
Average student loan debt: $32,054

Hey, I'm below average!  And glad of it, too :-) 

Though I have to admit to a little bit of credit card debt at the moment: they keep sending me these 0% interest for X months offers, so why pay until the last month?

Frankies Girl

  • Handlebar Stache
  • *****
  • Posts: 2472
  • Age: 2012
  • Typical Ghoul Next Door
Re: Rent Your Tires...
« Reply #23 on: June 11, 2013, 02:34:12 PM »
Oh yeah, those are horrible and everywhere where I live, but it is just certain areas. There are really poor neighborhoods right next to really rich ones... but you can always tell the instant you hit the borders of the poor side, as there will be payday loan buildings (usually 2-3 right next to each other!) and the rent-a-tire places and all of the other scummy companies (helloooo, strip clubs!)  just trying to cash in on those too broke to dig out of the hole. I think it's very, very sad that most folks are in trouble because they don't understand basic math and compound interest. There should be classes (more than one, dammit!) taught in high school about money management and financial responsibility, because there are clearly a large portion of the populace that just don't get it and never will unless someone shows them how. And that ain't right.

I honestly don't understand why putting even $5 a week away for emergencies isn't possible, but I remember reading this article (funny, but soooo true!) and nodding along with every point this author made (I grew up with parents that grew up poor) :

http://www.cracked.com/blog/the-5-stupidest-habits-you-develop-growing-up-poor/

« Last Edit: August 04, 2017, 07:27:23 AM by Frankies Girl »
I frequently have no idea what I'm talking about. Like now.

FIREd as of: March 6th, 2015!

Ting is awesome! Get $25 if you use my referral code: https://z0p1rd31m89.ting.com/

Hunny156

  • Bristles
  • ***
  • Posts: 400
  • Location: Central TX
Re: Rent Your Tires...
« Reply #24 on: June 11, 2013, 02:50:16 PM »
Good point mr mark, this is probably just a way to avoid usury laws.  I'd hate to be the guy who tries to repo tires, a hot water heater, etc.

From what I've heard in my area, the repo guys aren't allowed to leave the car up on blocks when they repo the tires/wheels, so they bring along a set of crappy rims w/flat tires, and they just quickly and quietly make the switch at night.

Mr Mark

  • Handlebar Stache
  • *****
  • Posts: 1029
  • Location: Detroit, MI
  • Achieved Financial Independence summer 2014. RE'18
Re: Rent Your Tires...
« Reply #25 on: June 11, 2013, 07:11:05 PM »
Oh yeah, those are horrible and everywhere where I live, but it is just certain areas. I live in Houston, and there are really poor neighborhoods right next to really rich ones... but you can always tell the instant you hit the borders of the poor side, as there will be payday loan buildings (usually 2-3 right next to each other!) and the rent-a-tire places and all of the other scummy companies (helloooo, strip clubs!)  just trying to cash in on those too broke to dig out of the hole. I think it's very, very sad that most folks are in trouble because they don't understand basic math and compound interest. There should be classes (more than one, dammit!) taught in high school about money management and financial responsibility, because there are clearly a large portion of the populace that just don't get it and never will unless someone shows them how. And that ain't right.

I honestly don't understand why putting even $5 a week away for emergencies isn't possible, but I remember reading this article (funny, but soooo true!) and nodding along with every point this author made (I grew up with parents that grew up poor) :

http://www.cracked.com/blog/the-5-stupidest-habits-you-develop-growing-up-poor/

Indeed. Add a few pawn shops, 'we buy gold', fast food, bail bonds here!, dodgy second-hand car salesmen offering instant finance & no credit, scrappy rental condos, ....
Mr. Mark

Mr Mark

  • Handlebar Stache
  • *****
  • Posts: 1029
  • Location: Detroit, MI
  • Achieved Financial Independence summer 2014. RE'18
Re: Rent Your Tires...
« Reply #26 on: June 11, 2013, 07:16:57 PM »
Good point mr mark, this is probably just a way to avoid usury laws.  I'd hate to be the guy who tries to repo tires, a hot water heater, etc.

I agree. It's very exploitative. Which is why it needs to be regulated.

And think of associated social costs, wrt crime, domestic violence, divorce, social welfare support, etc etc.

This is exactly when you need government.
Mr. Mark

sonofczar

  • 5 O'Clock Shadow
  • *
  • Posts: 8
  • Age: 38
  • Location: Canada
Re: Rent Your Tires...
« Reply #27 on: June 12, 2013, 08:10:12 AM »
This tire rental thing is the dumbest idea ever!  I haven't seen it in Canada yet though, so maybe I should think about fleecing some sheep with my own rental business........