Things get old every four or five years, sometimes sooner. In the face of this daily problem in the technology and automotive sectors, there is a commercial tool that solves many a problem.

The commercial system that allows one to enjoy goods and services without buying them, known as leasing, is not a privilege reserved just to companies. Professionals and private citizens can turn to this option which is gaining more and more acceptance in the world's most advanced economies:

Experts predict that the rental car market in Spain (which accounts for 920 million of the 1.132 billion euros in revenue posted in the rental and leasing industry) will show moderate growth in the next few years, in contrast with the annual average of more than 15 percent chalked up in the period 1997-2000. They blame a drop in tourism.

The latest study by the consultant DBK, which specializes in strategic and sectorial analyses, says leasing's evolution will depend greatly on its penetration amid small and medium sized businesses and professionals, which until now has been slow, and over the longer term among private individuals.

DBK warns that the industry in Spain will undergo concentration, with closures at many of the 1,500 rental car companies, which employ 15,000 people. The rest of the leasing industry features just 50-odd companies that employ 1,600 people.

In general terms, leasing involves services over the medium and long term without an option to buy. It is directed to all sectors of the economy and has the advantage that it includes all services necessary for the proper functioning of the good or service in question.

The main benefit of leasing is that businesses need not make hefty investments or expenditures in order to have a determined good. Company cars, photocopy machines, computer and office equipment, cell phones, telephone switchboards, tow trucks and medical instruments are just some of the stars of the world of leasing.

The rules of the game
Leasing is simple. You just have to make a monthly payment over a set period of time to enjoy a product and all its related services, with full guarantees from the leasing company. Months before the contract expires, the two parties (user and leasing company) agree on renewing or ending it. In the latter case the user returns the product to the lessor, who can either sell it or lease it again.

Tax incentives
Part of the charm of leasing are the tax benefits for businesses or people who are self-employed. From a financial point of view, companies can deduct leasing expenses form their tax return for the life of the leasing contract, not just at the beginning as is the case in a purchase. In other words, companies can use the latest products on the market without going into debt and with the certainty that the product will never grow obsolete.

Users of leased products need not worry about the contingencies that might arise. The monthly payment avoids possible variable costs.