IT was all the rage in the 1980s when televisions and hi-fis cost a fortune and many considered technology untrustworthy.

Renting, compared with buying consumer goods, was usually cheaper and provided the option of trying before you buy.

Now, with consumers forced to cut their spending in the face of soaring household bills, renting is making a comeback.

Fractional Life, a comparison site that lists 300 rental, leasing and collective-ownership firms offering everything from boats to handbags, art and property, has reported a 90% increase in hits to its site over the past six months.

Piers Brown of Fractional Life, said: “People still want a luxury lifestyle but aren’t prepared to pay what they once did. The credit crunch has certainly helped to bring about a change in the consumer’s mindset.”

The number of people leasing cars - the most popular item to be hire-purchased – has risen 11% since the credit crunch, according to research by BMW.

And even as fierce competition drives down the cost of LCD and plasma TVs on the high street, it can still work out cheaper to rent – with the added benefit that you are not left with obsolete technology.

Forbes Direct, an 80-year-old rental firm which now loans high-end electronics including large LCD TVs, combined DVD recorders and hard disk recorders, energy-efficient dishwashers and combined washer-dryers UK-wide, said rental inquiries have leapt 15% in the past year, while retail sales have dived.

Stephen Edwards of Forbes said: “You hear about retail sales falling, but we’ve done very well – our first-quarter results show an increase of about 5% compared to a year ago.

“It is a smart way of keeping up with today’s fast-moving consumer electronics market, where new products and technologies arrive at an alarming rate.”

We outline what’s available for hire and where to get the best deal.

CONSUMER GOODS

Local rental companies tend to be best when it comes to cheap rentals. For example, a Toshiba 37in HD Ready digital LCD TV (AV505D) will cost £518.90 to buy from Dixons, including delivery. At £39.99 a month from Andrews of Putney, a rental shop in southwest London, it works out as more economical to rent at £479.88 for the minimum 12-month rental requirement.

If you aren’t paying cash, Dixons charges 29.5% interest to finance the purchase – although at the moment you get the first nine months free.

Similarly, a Grundig 15in Digital LCD (GU-15WDT) costs just £9.99 a month to rent – or £179.82 for the minimum 18-month rental period – from Kent-based Barretts Digital, while the same shop will sell the television for £40.17 more at £219.99.

However, you may pay more if you want a full-service contract, including same-day call-outs for the full hire period, which can cost £80 an hour, including the call-out charge.

For a 37in Philips LCD TV, Forbes Direct charges £747 compared with an outright purchase from Dixons costing about £560, including a table-top stand. However, you have the flexibility to upgrade to a newer model during the purchase period.

ART

Borrowed art adorns the lobbies and offices of big business, but dealers and galleries will lend to private homes too.

Art-lovers can borrow contemporary paintings and sculptures for £15 per month from Art Lab from its cheapest plan, for a minimum of a year.

This allows them to borrow artworks valued at £500 and includes free delivery and collection if they live in the London area, in addition to framing and mounting according to the artist’s instructions.

Art Lab will charge £55 a month for a total of £2,000 worth of art, while its most expensive plan allows borrowers to rent 20 artworks with a total value of £25,000 for a monthly subscription of £500.

You can change the collection for no extra charge during the hire periods and buy the art at any time with six weeks’ notice.

Urban Angel, a dealer, is considering offering private customers the chance to hire works by leading street artists, including Banksy, Nick Walker, and Zeus in response to an increase in customer inquiries – although the scheme is not yet up and running.

CARS

For a membership of £2,250 a year to ClubGT Performance and Supercar club you can have a commitment-free joyride in a luxury car, including a Ferrari 550 Maranello, Lotus Elise Sport 160 or Mercedes-Benz CL55 AMG, in Britain, or abroad, for a weekend. There is also a joining fee of £250.

However, leasing is also becoming a more popular way to buy a car. BMW Financial Services reported a 7% rise in leasing schemes sold on all car purchases between February and March.

With leasing, buyers have the option to make small monthly repayments before making the final “balloon” payment after a minimum of two or three years. If you don’t want to purchase the car you can choose not to use the final payment, or can trade in the car for another model.

For example, buying a BMW 125i Coupe M Sport would cost £25,550 outright.

With a BMW Select finance agreement, monthly payments work out at £455 for three years after paying a deposit of £2,505 – a total outlay of £18,885. You would then have an optional final payment – £11,836 – if you wanted to buy the car.

Joe Pattinson, of BMW Financial Services, said: “The most important thing is to pay off a car loan as quickly as possible – leasing allows you to do this.”

If you took five years to pay off the BMW 125i, the car would have depreciated to £8,575.

DESIGNER HANDBAGS

You once had to be a celebrity to have a loan of a designer handbag. However, several rental web-site across Britain are loaning the latest £1,000 offerings from Prada, Balenciaga, Gucci or Chloé, saving you hundreds.

Bristol-based Handbags from Heaven is renting the Chloé Paddington for £90 including £10 shipping UK-wide, compared with an outright purchase price of £724.

A Jimmy Choo Rock, which would cost £996, can be hired for £46 a week.

Jo Hodge, founder of Handbags from Heaven, said: “We are having a fair few inquiries ahead of Ascot and Wimbledon.

“Men are some of our best customers as they can buy gift vouchers for women – who then get to pick their own bag. They are also popular among estate agents and solicitors who might have to front the public for a week.”

Handbag Hire HQ, which launched in July, has grown its range from 40 to 120 bags, including Burberrry, Fendi and Marc Jacobs.

It charges £90 a month for top designs, or £55 for the fortnight and £30 for a week.

A cheaper design from, say, Gucci, may cost just £30 for a month. Shipping is £10 a month extra.

The risk you take is that you may damage the bag, and the firm will usually ask that you pay for the cost of repair or replacement based on the age of the item if it cannot be fixed.