O2 Lease: Smartphone Rental Comes At A Price
If you fancy getting yourself a smartphone but don’t want to pay up front or get tied down to a long contract, and aren’t particularly fussed about actually owning it then the latest offer from O2, O2 Lease may be just the deal for you.
For £55 a month O2 will rent you a handset that you give back at the end of the year. Customers signing up for O2 lease will get 750 minutes talk time, 500MB of data, unlimited texts and insurance included in the price.
This may suit some customers but at £55 it seems like poor value to us when compared to a conventional contract where you actually get to keep the phone.
Let’s say you wanted an iPhone 4s 16GB, to lease it at £55 a month would equate to £660 a year. The same phone is free on a £52 a month, 18 month contract, costing a total of £936.
So on contract you get to keep the phone, you get the same data and text allowance, and more minutes, for only £276 more than a one year lease where you’re left without a phone at the end of it.
As the iPhone 4S is worth £499 sim-free, leasing doesn’t sound like a great deal to us. Ok you may argue what use is keeping your old phone? well many people, us included sell our old handsets! A used iPhone 4S is currently worth £325 on phone recycling website Mazuma mobile!
O2 seem to think it’s a good idea however, as customers are used to leasing other items- Sally Cowdry, marketing and consumer director for O2 said,
“This is the first time a UK mobile operator has adopted a leasing model.
“We know that customers and small businesses are used to leasing everyday items from cars and washing machines to photocopiers and office space.
“We have simply taken this idea and applied it to the smartphone market.”
We’re interested in what you think, would you be interested in leasing a smartphone or would you rather own it?
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