Buying or renting a phone? What is the most economical?

what is the most economical?

More and more smartphones are offered to us every year. It is therefore complicated to make a choice and above all to satisfy your desires in view of the budget that this generates. Because it is not only the frequency that tends to increase, but also the price, which nowadays flies up to 1800 € for the latest iPhone.

So today, the question arises from an economic point of view, is it better rent or buy your smartphone ?

Why rent?

We can say it, renting is not yet a habit of the French. And yet, it’s as simple as paying for a phone plan. You only have to pay one price per month, including some features, depending on the model and the time commitment. In most rental offers, the first rent is increased (if it is not a security deposit) and the breakage and theft insurance does not exceed €10 per month (it will be included in the price of your subscription if you are lucky).

The main advantage for you of renting a smartphone is to be able to change whenever you want. You are currently renting an iPhone X and want to be even more up-to-date on telephony and change to an iPhone 11, it is totally possible. You will have to pay a first increased rent or a new security deposit, but the change will generally be done from your customer area in a few clicks.

The second interesting point in smartphone rental is the ecological part. A good number of rental companies offer refurbished smartphones for the occasion.

Reconditioning is the fact of recovering phones that have already been used in order to refurbish them. They thus find a second life, which makes it possible to reduce the consumption of new devices. Renting is also that, the fact of being able to extend life cycles and return your smartphone when you no longer have any use for it so that it finds a new family, rather than it sleeping eternally at the bottom from your closet.

Why buy?

The taste of possessing is something, let it be said. And we all know how satisfying it is to have bought the latest fashionable smartphone out of your pocket and be able to do whatever you want with it.

Buying a smartphone today is above all investing in a property that can be resold a few years later if you want to change it.

Generally, your operators offer you the possibility of buying a smartphone at a more attractive price if you have a telephone plan with them, and that is undoubtedly a good plan.

But above all, today the major online sales platforms give you the possibility of paying in installments (between 2x and 24x) for your devices. This gives you time to invest without breaking the bank on the first of the month.

How much does it cost ?

We have prepared two different comparisons for you, one on renting and buying a refurbished smartphone and the other on buying and renting a new smartphone.

Price of a refurbished smartphone

The model we are going to take as an example is the iPhone X 64G Grade A. The comparison is made over a period of 24 months.

Shopping mark 1:

Refurbished iPhone X = 311 €

With breakage and theft insurance = €311 + (€59/year x 2) = 429 €

Rental Mark 2:

Refurbished iPhone X = €14.90 /month i.e. 14.90 x 24 = €357.60

With first rent = 357.60 + 69 = €426.60

With breakage and theft insurance = 426.60 + 0 = €426.60

Price of a new smartphone

Let’s take this time the iPhone 11 64G grade A over a period of 24 months.

Shopping mark 1:

iPhone 11 = €589

With breakage and theft insurance = €589 + (€14/month x 24) = 925 €

Rental Mark 2:

iPhone 11 = 24.90 / month or 24.90 x 24 = €597.60

With first rent = 597.60 + 60 = 657.6 €

With breakage and theft insurance = 657.6 + 0 = €657.6

What conclusion to draw ?

Today the average use of a smartphone is less than 2 years, this is the reason why we carried out our calculations over a period of 24 months.

The conclusion to be drawn from this study is thata two-year rental will cost less when taking into account theft and breakage insurance. Indeed, some will say that in the long term the purchase is a better investment, and this is ultimately not really the case. Let’s take the example of the new iPhone 11 64G, it is worth around €589 today, but it was worth more than €800 when it was released at Apple in 2019. Even if you want to resell it, you will not have recovered all your investment and will have to buy a more expensive model.

However, if you wish to rent for 24 months, you can change it without losing money and retaining the advantages such as theft and breakage insurance included in your subscription.

On the other hand, if you are more than conscientious with your smartphone and you are not a stickler for new models, then the purchase may be more for you. Be careful to choose a model that will not be hit hard by planned obsolescence and good luck with your new toy!
Anna Claus, editor of the blog.

Also read: How to sell your phone?

How to resell your iPhone?

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