In many aspects, smartphones make life easier. You may use a smartphone to check the weather, enter your online banking account, or receive instructions while travelling. But there can be a cost associated with that luxury. As of 2022, some high-end smartphone models are more expensive than $1,000.

If you seek the latest model without the exorbitant price tag, renting a phone may seem more appealing than buying one, and like renting a car or an apartment, renting a smartphone is similar. You agree to a rental with a company that leases smartphones, which entitles you to use the device for a predetermined time. You pay the lease as a condition.

When you lease, you often have to make a single upfront payment, then weekly, bimonthly, or monthly payments. The lease term’s duration can differ from one provider to the next.

Benefits of Renting a Phone

No buyer’s regret

These days, the market is filled with a variety of mid-range phones. All of them have enticing new features as well as perhaps a few issues, some major and others minor. It is challenging for us to choose just one model because the differences in features and specifications among these several versions are hardly discernible. Because of this, it’s always preferable to use something before deciding to buy it. In this manner, you will only pay rent for the time that you actually use. If you enjoy using it, you can buy it or upgrade it after a year. If not, you can simply return it and try another one.

The system is regularly upgraded.

New smartphones are continuously launched as technology continues to evolve and adapt. Leasing a phone makes it simpler to update when a new model is released if you’re a tech enthusiast. You could be able to receive a new phone every year, keeping up with the most recent developments in technology, depending on how long the lease period is.

It might cost less than purchasing it.

The average price of a smartphone sold worldwide in 2021 will be only $363, even though a typical luxury smartphone model can cost $1,000 or more.

When leasing one, you might have to pay a modest down payment of $50 to $100 and then make small monthly payments.

Credit might not be a barrier.

Many cellular service providers regularly run credit checks, so although you might not be refused service because of poor credit, you could need to deposit a larger amount to receive a phone. When leasing a phone, having bad credit or no credit history might not be a barrier to service.

Things to Consider Before Renting a Phone

The following are the most important considerations to make when deciding whether to rent a smartphone.

When you purchase a phone through an equipment instalment plan, you become its owner. But with a lease, you’re required to give the phone back, pay off the remaining sum, or switch to a new model.

If you like to have a brand-new phone every year, consider renting.

The majority of EIPs also permit early upgrades. However, you must first pay off your previous device.

If you choose to lease your phone rather than purchase it on an instalment plan, your monthly payments will be significantly lower.

If you want to keep the same phone for at least 18 months, consider purchasing it through an EIP (or outright, if you don’t mind paying more upfront).

Bottom line

Presently, smartphones are becoming more ubiquitous and are altering our daily lives. You can consider renting a phone if you’d like to avoid making a long-term commitment to a single phone model. If you’ve compared the costs of leasing versus outright purchasing a phone and discovered that leasing is less expensive, that could also be a good fit. To understand what you’ll pay and your options when the lease term finishes, carefully review the terms of any smartphone rental before agreeing to it.