Have you heard about cell phone subscriptions? Learn more about this option.
Owning a new phone is a dream for many users. But what about the money it costs to maintain it? Those who love this technological world often change their cell phone with each new model in the line, to keep up with the trends. However, the money spent is very high, since improved models are released every year and prices increase.
To this end, smartphone subscription services linked to cell phone rentals are trying to convince consumers that they are a valid alternative. In this type of business, customers pay a monthly fee to own the phone for the duration of the contract. Read on to find out more.
Subscription service
This service allows you to exchange your device for a new one whenever you perform maintenance or renewal. Cadu Guerra, CEO of a startup that rents cell phones and other electronics in Minas Gerais, explains that the first step to hiring a service is a questionnaire that tells the user what they expect from a contract. Your customer profile is evaluated and several analysis options are provided. It is an operation very similar to that of a car rental company, for example. After confirming the order, the user receives a cell phone at the registered address.
For example, an iPhone 12 with 256GB of memory costs on average R$3,420.80 for a 12-month contract, according to information on the company's website. The current retail value of the model is approximately R$6,583. You will have to pay R$10,999 in installments or R$9,899.10 in cash at Apple stores. In other words, for the money used to buy the iPhone 12 (cheaper), you will rent two more almost similar phones and will save with cell phones.
Allugator, the startup mentioned, already has about 3,000 registered customers in about 700 Brazilian cities. And now it is working on renting a new Apple phone. Other manufacturers are also looking to get involved. Guerra added that if the device is returned after the contract ends, the startup will sell it too, as one of the plans is to offer these pre-owned phones for rent.
What about Android?
Another company in this segment is Porto Seguro. The brand created Tech Fácil, which has been renting Samsung cell phones since February 2021. There are currently no plans to offer other brands. According to Marcos Loução, the company's vice president of business and financial services, the idea is to attract consumers who prefer to pay to use the physical product rather than own it. The plan is to expand beyond cell phones to include laptops, tablets and watches as platform options.
The user chooses a cell phone, a subscription plan and signs a contract. Payment can be made in cash or by credit card in up to 12 installments. Rent a Galaxy S21 128GB from Tech Fácil it costs much less, R$ 199 in 12 months, with insurance and maintenance already included. Currently, an S21 like this costs around R$ 4,179 at retail. At the end of the contract, the returned device is handed over to the partner, who will repair and resell it if necessary. If it is not suitable for resale, it is dismantled to use parts and properly dispose of the components.
Is it worth renting?
According to financial consultant Silvia Machado, hiring a cell phone rental service can be useful in some cases. If you usually change your cell phone every year and spend money on the best model, renting may be more economical. Consumer preferences and rational thinking about pros and cons should be taken into account when making decisions. For those who only change their device when it breaks, it is not worth renting, according to the expert. It is worth remembering that the latest generation smartphones usually have a useful life of several years.
