What is a smartphone subscription
Smartphone subscription or rental is a service that allows you to rent a device for a certain monthly subscription fee. The contract is issued for 12 months, and after its expiration, the user can change the smartphone to another model, for example, its current version, or use it by paying the remaining value.
At the same time, organizations that offer such a service claim that it is a more profitable solution than installment plans. For example, instead of the full cost of 99 thousand rubles in Term Leasing. It was proposed to pay 8066 rubles for Xiaomi 12 in 128 GB. monthly. It turns out 96792 for 12 months – it saves a little more than 2 thousand rubles.
The cost is calculated as follows – 99 thousand rubles. the cost of the device itself. 11.5 thousand rubles are also added there. for rental and 16 thousand rubles. once in the first year for the screen and backplane replacement program. In total, about 126.5 thousand rubles were obtained, from which 29.7 thousand rubles were received. in the form of residual value that does not have to be paid when upgrading to a new model. The amount received is 96.8 thousand rubles. already divided by 12 months – the same monthly 8 thousand rubles will be like this.
At the same time, if the user wants to buy the smartphone at the end of the contract, he will have to pay the company the same 29.7 thousand rubles. As a result, the 128 GB Xiaomi 12 will cost him 126.5 thousand rubles. And that’s not all.
For example, if the user wants to cancel the lease after 12 months, he will have to pay the residual value even if the smartphone is returned to the company. In case of termination of the contract, the remaining amount is paid by the customer. It doesn’t matter if it’s just a month or 12.
At the same time, the contract will be automatically renewed at the end of the year. Therefore, the only way to avoid paying the remaining value is to continue using the smartphone subscription service.
What is the difference between subscription and installment
The subscription works on the basis of a rental agreement. The user can return the old gadget model in a year and get a new smartphone. After 12 months, the replacement is completely free and in case of early treatment you will have to pay extra.
MTS’s press service, which offers MTS Upgrade subscription service in partnership with Forward Leasing, has ensured that the monthly payment under the subscription program is approximately 40% less than the annual installment payment. However, as practice shows, this is not entirely true.
For comparison, you can buy Xiaomi 12 in any of the partner stores of the Chinese company. For example, in DNS the same model is offered much cheaper – for 70 thousand rubles. instead of 126.5 thousand rubles. in Forward Leasing in case of a subsequent purchase.
It was proposed to pay 8 thousand rubles per month when subscribing. during the year, then in the case of installments – only 6.67 thousand rubles. In addition, after a year, the user will be able to sell this smartphone and return some of the money spent.
Do you need a subscription
Mobile Research Group Lead Analyst Eldar Murtazin, in an interview with socialbites.ca, noted that renting today is unprofitable, as there is actually no difference between such a service and an installment plan.
“With the installment, the device stays with the user, who can sell it at any time. Better in every way. The buyer has become more rational, so the rental no longer plays as big a role as before,” says the expert.
According to Murtazin, if he offers some scarce goods, the rental will be appropriate. But as the analyst noted, the same PlayStation 5 console is now available.
“In the absence of scarce things and compared to installments, renting makes no sense. For this reason, leasing offers are decreasing as much as leasing applications today.”
Subscription Disadvantages
The benefits, as it turned out, are no subscriptions. This may seem like a more convenient process compared to installment plans, but no – you need the same documents when subscribing because it’s actually a loan agreement. As a result, you will need a passport of a citizen of the Russian Federation, registration and a good credit history.
The main disadvantage of using a subscription smartphone is hidden surcharges in the form of late payments or for the condition of the smartphone when it is returned. For example, the penalty for late payment of the subscription fee is 1.5 thousand rubles.
If the gadget is returned to the company in perfect condition, it can be exchanged for a new model free of charge after 12 months. If there are scratches or chips, you will have to pay about 10% of the cost of the gadget.