For many people, ownership is a big deal. They want the sense of pride and accomplishment that comes with owning their own cars, houses, boats, you name it. While the ego boost and sense of accomplishment are great, they do come at a steep price. You might be in debt for long stretches of your life.
Being in debt is fine if you have a job or business to cover your monthly bills. However, if your employment or business goes through a few hiccups or you flat out lose your job or go out of business, you might experience crushing stress. All that stress might be too much of a price to pay for pride of ownership.
There is an alternative approach to owning. This approach involves paying only for the part you use. Doesn’t that sound nice? Paying only for the portion you use instead of saddling yourself with debt for years on end. With the pay as you use model, you stop paying when you stop using. You can set up a block of time and commit to usage for that time. After that, you turnover the item to its owner. No fuss. No muss.
Save by avoiding depreciation
Most goods go out of sale, wear out, or become obsolete with time. If you just pay to use objects, you pay for the life of the object you used. Compare that with buying where you bought the item and it becomes obsolete. You still have it but you are no longer using it because you have moved on to the latest model. This is true for computers, furniture, appliances, homes, and, most of all, cars.
You might think that you are saving more money by buying stuff, but you might actually be wasting money. Take the case of a car that is valued at 30,000 dollars brand new. You lease it for 3 years at the rate of $400 a month. At the end of the lease period, you paid $14,400. However, if you bought your car, it decreases in value for every single year you hang on to it. Eventually, it reaches a minimum value. You avoid all these hassles by leasing. You save money by avoiding depreciation costs.
Save through deductions
If you own a business or are incorporated as a personal services corporation, you can deduct at least part of the amount you spend on leasing. Not only can you write off some of the car lease itself, you can deduct for car-related expenses like car wash service, fuel, insurance, and other related costs. These translate to having more cash left over at the end of the tax year.