Excerpted from Paul Citarella in Shareable:

“The simple truth is, if you rent something long enough you’ll eventually pay for the cost of that item and have nothing to show for it. You could own these items, but then you’re paying for something that will sit idle most of the time, which doesn’t make much sense. As it turns out, there is a model in between renting and owning that combines the best of both worlds – shared ownership. It’s a simple concept. A group of like-minded people get together and pool their resources to purchase and own something together, as a group. Each co-owner gets an equal share of usage time, and pays an equal share of the expenses. This model is, in effect, combining the usage needs of several individuals into a group that makes the economics work more like a home. The group as a whole uses the item frequently enough to make ownership the obvious answer over renting. From the co-owner’s perspective, there are several benefits. It’s a way to pay for the portion of the item that they’ll actually use. It’s also a way to multiply their purchasing power. Instead of owning something worth $10K for example, they can now afford something worth $30k or $40k depending on how many co-owners are in the group. For many, shared ownership can provide access to a lifestyle that they simply couldn’t afford on their own. It also reduces consumption and waste because it’s making better use of an otherwise underutilized item.”