So, I have a confession to make.
I, a frugal gal, rent my car for $500 a month.
But wait! Stop! Don’t click away. I realize that’s a ridiculous thing to write, especially coming from someone who writes her own personal finance blog.
Yet, I hope you’ll hear me out about the reasons why I rent my ’95 CRV for that whopping price.
What, you didn’t think I was driving a Benz did you?
Reason #1: Location, Location, Location
As many of you know, I currently live in Grenada, West Indies. Living in the Caribbean has been pretty amazing, but it is shockingly expensive. Grenada is home to 100,000 people and 2,000+ med/vet school students. Most of the students are from the U.S. and Canada, and so over the past 40 years that our university has been in existence, the prices of everything have risen to meet and exceed US prices. This means that if you want to buy a few green grapes, you’re going to pay $10US for them, and if you’re going to rent a car, well, the sky is the limit.
Reason #2: We Went So Long Without One
Part of the reason I can justify this expense is because I got a promotion at work. Before that, I was only working part time, and I was taking the bus everywhere. The bus works fine, and it’s free. It wasn’t that reliable on weekends though, and it would often take me 2 hours to make a simple grocery run. So, although I did not inflate my lifestyle in any other way after my promotion, I did decide to start renting a car. The main reason is that once I started working full time and continuing to manage my website, I didn’t have the luxury of a 2 hour grocery trip. Plus, I could afford it. Simple as that. We don’t purchase new clothes or eat out too much or have a TV, but we do have an outrageously expensive rental!
Reason #3: I Wanted the Car to Start Every Day
Wanting a car to start every day doesn’t seem like much to ask, does it? Except in Grenada, this is a really important consideration. I have friends who rent cars for $350-$400 per month, which would be great. However, their cars break a lot. Every three weeks or so they are calling their rental guy who promptly replaces what’s broken with something else that’s broken. It’s a vicious cycle. So, when I looked for a car to rent, I insisted that it had to start every day so I could get to work on time. Like I said, it was a pretty lofty goal, haha, and it came with a high price.
Reason #4: It’s Safer
During my husband’s first year of medical school, I was waiting at the bus stop holding his dinner and ready to get on the bus to bring it to school for him. A truck full of local guys drove past me, and it was getting dark. They yelled some things that I can’t re-type here. It wasn’t a harmless whistle or a, “Hey girl!” They yelled a lot of demeaning phrases and obscenities that would make even the toughest guy blush. I’d never been spoken to that way or treated like such meat in all my life. Ever since then, I’ve been uncomfortable waiting for the bus by myself, so deciding to go ahead and pour a big part of my monthly budget into a car was a no brainer once I could afford to do so.
So what do you think? Is it crazy I spend so much on a 1995 vehicle or would you have done the same thing?
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Seems like a justified expense to me, and isn’t all that expensive compared to car ownership!!
moneystepper True, car ownership + repairs could run you that!
I think it would be crazy to rent a car for $500 in the U.S. but not in Grenada. Obviously you are dealing with a very specific situation over there and making the best of it.
Holly at ClubThrifty So true. We opened the newspaper one time at home, and they had a brand new volvo suv to rent for $500 a month and we just had to face palm. It was a terrible realization haha.
I think it makes sense.. If you bought a car there, it would likely be quite the challenge to get it back to the states, if and when you come back :-)
seedebtrun A lot of people buy cars here and sell it to other students when they leave. That’s the more affordable option, but since we waited so long to get one and most of the cars people buy are cruddy too, I’m happy with our choice.
While $500 is a lot to spend, that’s the unfortunate reality over there for a reliable car I guess! I think your reasons were very sound. If I had went through what you did at the bus stop, I’m sure my boyfriend would have been quite supportive of the decision to get a car, too. No one wants to feel afraid going to the simplest of places.
JourneytoSaving Exactly. After that, my hubs said ummm we are definitely getting a car.
I would do the same thing, given the same circumstance. You can’t really put a price on having the reliability and safety that having a car there allows you.
FrugalRules Thanks. That’s what my hubs said!
Wow it’s crazy how expensive it is there. How do the locals afford to live there? Just curious…how much would it cost to buy a car if it costs that much to rent one? But as John said, you can’t put a price on safety and reliability.
Andrew LivingRichCheaply The part of the island where the students live is very jacked up in price. The locals unless they are very wealthy tend to live in other areas on the island. It’s very poor country with high unemployment, so they do not typically own their own cars, etc. You can buy an old car for about 4k US but then you have to fix it, insurance it, get it inspected and a whole range of other things that are hassles in Grenada that my hubs didn’t have the time to deal with since he’s in med school. So, this solution worked for us. Just a bit longer now!
I don’t know how you keep your expenses down with such a high cost of living. I would think renting a car, even at that price, is definitely worth all the saved time in bus trips.
brokeandbeau The saved time is great. We keep our expenses down by living in a 270 sq ft apartment, not having a tv, not buying any clothes, and having a practically zero entertainment budget. There is nothing to buy here, no fancy malls, nothing to tempt us. :) We’ve done way better financially than we did back in the States!
I couldn’t imagine spending that much to rent a car and not even like rent to own. I would probably just have to keep taking the bus but just during day light. I can’t believe the bus is free. That’s pretty cool.
MonaSez Well, the bus is the university bus, and we pay thousands of dollars in fees, haha so I’m sure we’re paying for it somehow. Unfortunately, people are mugged in daylight here as well so it’s not a risk I was willing to take anymore.
I think that’s a lot of money especially when you can save by using the bus. But again you have your reasons and only you understand it better. For example the scenario where guys threw some bad words your way can make you afraid and you cannot be guaranteed that every time you take a bus it would be day time.
BorrowedCents Its definitely a lot of money. At the same time, by living in 270 sq ft, not buying clothes, not having a tv, etc. we have managed to comfortably afford it. There are too many risks here with break ins and mugging, even in broad daylight.
Crazy expensive. Wouldn’t it be cheaper to buy a car in the states and have it shipped over?
KyleJames1 I don’t know about shipping but buying one here would have been slightly cheaper. My
husband just didn’t want to deal with permits, insurance, inspections,
and repairs while he was in med school and he didn’t want me to try to
navigate that scene without him but many others do buy for sure.
I think #4 is ample reason. Certainly if it was me and that situation with my wife I would fork over the money to rent a car.
ayoungpro Thanks yeah – exactly how the hubs felt!
If the higher rent means you are spending less time waiting for repairs, I think that’s justified. You still have to get to work and do other things and that lost time can cost you money.
MicrosMissions Agreed. If something is wrong with the car, the guy just picks it up from my work in the morning, fixes it, and drops it back off. It’s nice.
How long are you going to rent for? If it’s anywhere close to a year couldn’t you buy one for about the same price?
Matt @ Mom and Dad Money Yep we definitely could and buying one would have been slightly cheaper. My husband just didn’t want to deal with permits, insurance, inspections, and repairs while we was in med school and he didn’t want me to try to navigate that scene without him but many others do buy for sure.
BudgetBlonde Matt @ Mom and Dad Money It’s so important to factor in those little non-financial things that come with any decision. I don’t blame your husband for not wanting to deal with those things while in med school. I know I would be trying to minimize the number of non-med school things I would have to deal with if I was in med school. Definitely worth it imo.
Whoa, that last reason is scary. I’m sorry that happened and if that happened to my wife, that’d be the last time she took the bus, too.
I wonder if an enterprising westerner could make some money bringing cars to the island and running a rental & repair business.
DonebyForty Hmm they could try but they’d have a very hard time getting the right work visas etc to be successful. A westerner tried to open a McDonalds here once and it failed.
Sorry to hear that reason # 4 that’s scary. If I were on your situation I’ll do the same thing too I’d rather rent on a 1995 vehicle “but I don’t know how to drive” rather than taking a bus daily.
Clarisse @ Make Money Your Way So true. I think #4 could have been a lot worse but thanks!
I’d probably do the same thing if I could afford it and cut back in other areas. All of your extra income more than covers it though I’m sure.
Money Life and More So true! :) Gotta hustle for all those fancy extras! ;)
I think you probably had to do what you had to do. It sucks that it cost so much though. I remember reading that in your budget.
Beachbudget Oh yeah. It’s crazy. Pretty soon though I’ll be home in the US in my paid for other old car haha.
It’s expensive, but if it’s a matter of safety, you do what you have to do. Life is all about choices and if this is the right choice for you I think it makes perfect sense.
StudentDebtSurvivor Thanks KK!
I think it fits fine with your current living situation. I am the type that couldn’t go without a car so I definitely understand where you’re coming from.
SingleMomIncome Yeah it was an interesting experiment to go a year without one. It made me appreciate it so much when I did get it!
I am curious, US has many good medical school, why many Americans studying medicine or vet medicine in Granada?
I believe for safety and privacy reasons you have to drive a car. Renting is the fastest way without a lot of hassle like licenses, permits, etc.
My Wealth Desire Great question! Med school is extremely competitive in the US and lots of qualified applicants don’t get accepted every year. International schools provide that opportunity to those qualified students. It’s a great method. We go to Grenada for 2 years, my husband takes the same licensing exam as US students, and is able to do hospital rotations his last two years in the US and residency back in the US. In the past, Caribbean schools have been seen as “lesser” for this reason, but SGU, my husband’s med school smoked the US average on the board exams the last three years in a row, and it’s really exciting.
We we lived in Grenada I bought a Toyota Corolla for $3,000 US, and when we left I sold it for $3,000 US. It only broke down once the entire time we owned it. I estimate we paid $600 for the repair and tires over the year. There is a large import tax in new cars there so used ones never lose value.