Leasing a phone vs buying – Which is the best and why?

Leasing a phone vs buying in cash get confuse you most of the time. But truly what is the best option to having an upgraded cell phone in your hand?

To buy a latest smartphone in full payment most of the time deep down your pocket and get you huge impact financially, on the other side once you leasing a phone instead of buying you haven’t to deep down your pocket and you can pay the cost into 6 to 12 months or even 24 months easy and lowest payment instalments based on the different cell phone carriers and offers.

Most of the cell phone carriers offer 0% interest once you choose 12 months easy instalment to get your desired cell phones, and even sometimes they gives you to get trade in offers to replace your old phones to get the latest one. To have leasing a phone vs buying, both have some positive and negative impact in financially and mentally too.

Leasing a phone vs buying – Which is the best and why?

We have found that most of the reason to have leasing a phone instead of buying or even buying in cash instead of lease. Scroll down to compare the pros and cons.

Leasing a phone vs buying

Buying a phone instead of Leasing – is it good option?

Buying a phone is far more better than leasing a phone. But yes if you are unable to buy a phone with full payment at a time then leasing is the best option. If you can be satisfied with the same phone for two years or longer then you better off just buying your phones directly. 

The main difference between leasing and buying a phone is in monthly instalments. You will not own the phone at the end of your lease, unless of course you pay a buyout price. So in this sense buying phone is better than leasing a phone. 

Leasing a phone instead of Buying – is it better than leasing?

Sometimes it is better to lease a phone than buying a phone. Leasing a phone is best for them those who are incapable of buying a phone with full payments.

But leasing a phone is cheaper than buying a phone in full and you will be able to get a new phone every 12-18 months. It may appear like leasing a phone is not a good idea but for many leasing a phone is best in the long run.

When you pay the full price of your phone forthright you have bought the phone immediately. When your phone is included with a monthly service plan then that is a contract / lease purchase. The price of your phone is normally guaranteed by the service provider and included in your monthly payments.

Which is a better option compared to Leasing a phone vs buying?

Leasing a phone is a better option. By leasing a phone you can change phone every year. Leasing a phone is sometimes troublesome and worrisome. Such as if you don’t pay the money of lease then your mobile contract and your account will go into arrears. If you don’t take steps to deal with the debt your account will be cancelled. The mobile provider then can take action to regain the outstanding bill, by following the normal debt collection process. 

On the other hand, buying a phone with full payment is hassle free. Like you would not need to take tension for monthly paying. Buying your phone makes you more likely to hold onto it, to use it for a long time and saves you money in the long run. Leasing phone payment plans you fetch up  paying more over the course of two years fees and other hidden charges.

So, if we compare between these two then we will realize that buying a phone is far more better than leasing a phone.

FAQ for leasing a phone or buying

Q. How long can you go without leasing your phone bill?

A.You have to pay more for being late. If your payment is remitted three days late ,then you could be charged a late fee. Most credit cards payments are owing within minimum 21 days after the billing series, but keep in mind the grace period is only 30 days so you have to pay them off as early as possible. 

Q. Can I sell my leased phone?

Until you finish your full instalments you are not the owner of the phone. As it is leased so you can not own it. Like if you are borrowing it from Sprint then you must return it to Sprint. You can not sell it. 

Q. How much is to lease a phone?

If you lease a phone, then you will pay around $30-$35 a month for a 64G phone for a year, paying somewhere between $320 and $450 total. So, depending upon a phone company it may be a little cheaper to lease, or it may be moderately more expensive.

Q. Does leasing a phone build credit?

Although cell phone companies demand a credit check before they lease you a phone or provide you with a cell phone contract. In this way you can not build creditworthiness. That means that no matter how many times you make phone payment on time, it will not help you on your credit score.

Final Verdict

Leasing a phone has advantages and disadvantages like buying a phone. Leasing contract is sometimes better than buying. Moreover, leasing contract is stressful for many. Because when you lease a phone you have to pay more than phone price. But in this case, you can negotiate a lease price. When it comes to negotiating, leasing a phone vs buying, leasing is just like buying. And this means that you should feel free to negotiate a phone when you go to lease a phone.

So, don’t delay. Those who were in hesitation about leasing a phone or buying they can have a look in this overview. Presumably, You will find your answer.

About The Author - Rony Jahid

Myself Rony Jahid, most struggling manager of ResetTips, an ex full time top freelancer at (freelancer.com). A part time blogger and an affiliate marketer on various platform, who still runs after his goal.
Hobby or you can say bad habit, invest into calculated risk. #Ronyjahid