Renting vs Buying: The Cost Analysis!
Posted 20th November 2019. Category: General.
Often it is difficult to determine whether buying or renting an electric scooter is better value. In this analysis, we will go through the costs and benefits of an example scenario - of a customer who wants to use an electric scooter over a period of one year.
In scenario one, the customer purchases a Xiaomi M365 Pro outright, for $999. The initial cost is high, but the customer now owns the scooter. Assuming the customer uses the scooter every day, it will require a service at least once in the first year. The WalkSmart service costs $99 and includes a full clean, strip, body lubrication, battery testing and reconditioning. Also, in the first year, we will assume some minor damage occurs, such as the tyres needing replacement, and a loose stem that needs adjustment. These additional servicing costs may range between $200-$300 to complete. The total yearly operating cost of Xiaomi M365 Pro has now jumped to $1300. By this point, there is a new model of scooter out which the customer wishes to upgrade to. The customer would now sell their current scooter for an estimated value of $400, and purchase the 'new' updated model for $999. The additional cost here is $599.95.
In scenario two, the customer decides to rent out the scooter for the period of 12 months. The customer pays the rental fee for $110 per month, which totals $1320 per year; however, the customer receives 50% of this as credit towards his next scooter. When he purchases the 'new' electric scooter model for $999 in the following year, the customer receives $660 in credit, so the additional cost is only $339. On top of this, the customer has also received the benefits of the Diamond Care Package gained with the rental, and a free helmet and phone mount. The Diamond Care Package includes free servicing, accidental damage cover, a loan or a replacement scooter during workshop repairs and the flexibility of being able to upgrade or swap models at any time!
The WalkSmart FlexiRental plan is designed to suit customers who value their time and do not want the hassle of maintaining, servicing and fixing their scooters. Leave that to us and use one of our scooters!
And what about for more than one year? After the second year again, the customer will always be given the option to buy outright a new scooter which will (including the credit from rental payments) be more financially viable than owning!
Contact a team member at WalkSmart today, and come in for a test drive! Rent for one month, and see how you can save time and money on transport! If you don't like, simply don't renew your rental for the second month!
WalkSmart recommends that you check your local state laws and regulations in relation to using electric scooters in public locations, roads and footpaths. Laws vary state by state and therefore may limit use to private locations only. Each local body is reviewing public electric scooter use, so we expect it to be regulated, but legal in all states within the short term. Feel free to contact WalkSmart if you have any further queries.