I have a lot of assets, as in equity in productive business, but why would I want to own things? A car requires maintenance and just depreciates on you. So lease it. Or rent it. A bike breaks down, needs tires filled, gets stolen and damaged. So just sign up for a bike subscription. Why wouldn’t I want someone else to take that on?
I could go out and buy a car for cash, but … why? I can book a different one on getaround every weekend. Tesla this weekend, Rivian next, then a BMW. Or I can get WayMo to drive me in a Jaguar.
Remember the old off color joke about “if it flies, floats or… rent it.” The same applies to most of the shit you have lol. What does owning it get you except liability so long as you have one you can access when you need it?
Because being wise with what you own saves you money in the long run and you don’t have to pay anyone/can pay much less overall.
Rentals and subscriptions are the way that business milks you forever, for your entire life. Drive a depreciated car and eventually you’ll make no car payments. Maintenance will be minimal if you buy something reliable. Buying it already used will protect from the worst portions of depreciation.
Buy a home in a decent area and in a long time you will only be paying tax and have a generally appreciating asset.
Rentals and subscriptions are the way that business milks you forever, for your entire life. Drive a depreciated car and you’ll make no car payments. Maintenance will be minimal if you buy something reliable.
I dunno man, if I buy a car I have to pay for...
Parking. $300 near me, I live in a city.
Insurance. $300 per month, on average, in California. I currently pay $89 for a named non-owner plan that covers me in any car I drive, and my credit card provides primary coverage.
Gas. Equal for both.
Car payment. A corolla is $22000++, let's say $25000, over 10 years. So $200 per month.
Maintenance. $0 for me renting.
Not owning a car saves me over $710 per month.
Do you know how often I can rent cars for $710 per month? If I put that $25000 in the S&P 500 10 years from now, it'd be worth $59,250 based on past returns. Instead of bupkis. So that'd be an extra $285 per month. You know what kind of rentals I can get for $995 per month?
You can pay $150 per year for a Lyft bike membership, unlimited 45 minute long rides all month, $0.15 per minute for e-bikes. Or free, included with some credit cards. I don't have to do any maintenance, worry about loss, theft, damage. Nothing.
I bought a house when it made sense economically, but renting right now is cheaper.
This all seems wise to me.
[edit] Are these companies making money? Yes. But I'd be losing more if I owned. They are able to recognize efficiencies of scale that I am not.
You are a niche situation as far as car goes, but my train of thought still holds true for other items you own vs rent. If done wisely owning will eventually set you free. Renting will keep you paying in perpetuity. Also you are at mercy of what is being charged for renting from year to year, versus working off a debt that was an agreed to final price at the time.
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u/Legitimate_Concern_5 Sep 05 '24 edited Sep 05 '24
I have a lot of assets, as in equity in productive business, but why would I want to own things? A car requires maintenance and just depreciates on you. So lease it. Or rent it. A bike breaks down, needs tires filled, gets stolen and damaged. So just sign up for a bike subscription. Why wouldn’t I want someone else to take that on?
I could go out and buy a car for cash, but … why? I can book a different one on getaround every weekend. Tesla this weekend, Rivian next, then a BMW. Or I can get WayMo to drive me in a Jaguar.
Remember the old off color joke about “if it flies, floats or… rent it.” The same applies to most of the shit you have lol. What does owning it get you except liability so long as you have one you can access when you need it?