Many students ask this question when they are first starting out, and continue to ask it throughout their playing. The answer is simple, yet different for every student.
When renting an instrument, you pay a monthly fee for use of an instrument. Included in your use, however, is care of the instrument. If you break a string, need your bow rehaired, drop your instrument and break your bridge, or even run it over with your car, the dealer will usually repair or replace the instrument for free.
Renting is especially sensible for young students who are constantly growing. If you buy an instrument, you have to buy a new instrument, and sell your old one, every time your student outgrows their instrument, which can be frequently. If you rent, all that is needed is a quick trip into the dealer, who will size the student, and switch your instrument for one of an appropriate size. Sometimes, this will cause a monthly fee to change, but not by more than a couple dollars.
If you are a beginner, there is no real need for a very expensive violin until you gain more experience. However, after a few months to a couple years, a better instrument will be needed. If you are renting, this exchange is easy. You visit the dealer, tell them you want a better violin, and they may let you try a couple to make sure you like the one you end up with, then they do the exchange of instruments. Again, your monthly fee may be affected, but not by much. If you own your instrument and decide to upgrade, you have to buy a new instrument, and sell your old one.
The final benefit of renting comes when it is time to buy an instrument. Most dealers will allow part or all of the monthly rent you have paid to go toward purchasing a new (or used) instrument from them. And this could be the instrument you're renting, or one of a higher quality. So you're not just "throwing money away" when you are renting.
All that being said, owning your own instrument has its perks, too, especially for the advanced player. If allows you to get repairs done where you want them, you can choose the strings that are put on the instrument, and once you have paid off the instrument, you have only maintenance to pay for.
I recommend my beginners to start by renting an instrument, and after a little while to buy an instrument of a better quality. When buying an instrument, you should always play it to make sure you like it. It's going to be your instrument, and only you can decide if you'll actually enjoy playing it. This is why I recommend beginners to start with renting, but the decision is yours to make.
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