Financing methods for Segways

March 1, 2013

Let’s face it: Segways are pretty expensive. At least for most people that can only use it once or twice a year. And they are pretty large and it takes some spaces in the garage to store them. There’s one simple rule: If you think you won’t need your Segway at least weekly you should not consider buying one. If you use it less often you should just rent one even though that might be more expensive. But you have no risk as you pay on demand. Whenever you need one you will get it. Then you have to pay attention to the concept of present value. This can be pretty confusing but when you consider that $1000 today ore more worth than $1000 in 2 years it’s pretty obvious. The reason for that is not inflation as many people think. It’s about interest rates. When you spend that $1000 in 2 years and not earlier you can make a bank deposit (or any other investment opportunity like stocks, funds or forex trading at plus500) and earn 3% in interest making your $1000 a bit more in 2 years. So you prefer to spend $1000 in 2 years and not today. And that’s why you need a very good reason to spend a small fortune to buy a segway now instead of paying nothing at first and pay small rents whenever you need it. So overall you can say that financing a segway is not an easy task and you have to consider a lot of things. I’d generally suggest to get to a store every time you need one if you don’t use it very often and also have no alternatives like bycicles.