Mobile Phone Leasing
Can you lease mobile phones?
The simple answer is yes, but lets start to caveat this.
- Business’s or companies lease, individual consumers do not lease mobile phones. They are normally on some form or rental contract with the provider or retail outlet
- Leasing is subject to credit, not all companies will be accepted for credit
What’s cheapest, a mobile phone lease or all inclusive contact with a mobile phone provider?
The key reason why I am writing this blog is because we have just totally changed how we deal with our company mobile phones. We have been with O2 for many years. Normally, we sign a two-year agreement and get a brand-new phone at the start of the contract. The monthly rental covers the phone, calls, texts and mobile data. It all seemed too good to be true and really cheap. However, we have been paying £46.50 for a telephone plan we can get for £16.00 per month.
Why leasing a phone is so much better than signing up for a contract with a service provider including a mobile phone.
We believe it is cheaper to buy a phone and pay a £16.00 per month charge compared to signing up to a two year deal – phone included – for £46.50 per month. The key reason is that if an employee leaves, we are only committed to a maximum of 12 months x £16.00. We could sell the phone via ebay and get back quite a bit of the phone handset cost.
Now, if you have entered into a lease, clearly you have the problem of having to terminate the lease agreement. Also, under the terms of the lease agreement you cannot sell the phone as you do not own it.
The great thing about leasing is that you do not have to pay for the phone upfront. What might be an idea, is that if you need 10 mobile phones, only lease seven or eight and buy two or three. This gives you the flexibility if a few of your team leave. Technically, you have to give the serial number of the phone that is on lease. If you explained what you are doing to a leasing company, as long as the mobile phones are the same, they would normally be OK changing a serial number on a lease agreement.
Compare an 02 contract to a lease contract for an Apple iPhone 8
As of today, O2 will charge:
£69.99 upfront then 24 months of £28.00, a total of £741.99. The APR on the phone is 0%. However, rather than then pay an additional £26.00 for a 24 month airtime plan, you could just sign up for a 12 month plan – exactly the same offering – for cheaper.
We are not too sure if you keep the mobile phone at the end of the two year agreement.
To compare this to a lease, we would charge £30.56+VAT per month over two years for a brank new iPhone 8 with 64gb, RRP £659.00 inc VAT. Yes, you pay interest, but you keep the iPhone and have more flexibility
Lease an Apple iPhone 8
If you would like to lease an Apple iPhone 8 – or any other mobile phones – please call us for more information on 01494 611 456.