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What is smartphone leasing and is it right for you?

Posted by (Online Community Manager)
5th May 2017, 12:00am
Optus

Want a new phone after 12 months?

 

If you have to get your hands on the latest technology, our new smartphone leasing plans could be perfect for you.

 

Smartphone leasing from Optus allows you to lease an eligible phone from us on our new 24 month My Plan Flex plans. These new plans also give you the option to upgrade to a new phone after 12 months , simply by paying a one-off fee of $99, signing up to a new 24-month plan and returning the current handset in good working order. If the leased phone is not in good working order, don’t worry, you can still upgrade after 12 months for an additional fee. If it’s an easy fix like a cracked screen, we’ll upgrade you for a fee of up to $229. If the phone can’t be repaired, you’ll pay up to $499 to upgrade to a new one. Wondering what happens to the old phone once you’ve upgraded? We’ll make sure that it’s put to good use, so you can feel great knowing you’ve played your part in reducing e-waste.

 

While you don’t own the phone with our smartphone leasing plans, you could pay less on your monthly bill on some My Plan Flex and phone combinations, when compared to similar My Plan Plus options. Please note that if you cancel early and/or if the phone is not returned to Optus in good working order (including at the end of your lease), fees do apply.

 

If our new My Plan Flex plans sound good, you can find out more about them and how smartphone leasing works by clicking here

Comments
petergdownload
by Esteemed Contributor
‎2017-05-04 07:10 AM

(The link supplied appears broken.)

 

Looking at the Optus store leasing the Samsung S8 (10gb per month plan) costs $85 a month. Alternatively the standard pay off the phone plan costs $89 a month. So after 24 months you've saved $48 going with the lease. But you are still on the hook to buy the phone at current market value. Instead if you paid the $48 you'd own the phone outright.

 

 

I posted earlier that these plans seem anything but flexible. My Plan Plus already allow you to upgrade your phone in 12 months for $99. There is also $0 penalty if you break the phone. you can also choose your own repairer instead of paying $230-$499 for a fix) and most of all, after 24 months of payments you actually own the phone.

 

IMO the lease deal would make more sense if the My Plan Plus wan't so good. Perhaps we'll see the My plan Plus plans downgraded soon?

 

Regards

 

Peter Gillespie

Steph_C
by RetiredModerator Steph_C
‎2017-05-04 10:24 AM

Hey @petergdownload as with all of our plans our customers do need to consider whether it meets their needs in terms of pricing, handset and also inclusions.

 

We do have this leasing offer available to customers who would prefer to pay less, while still having the latest technology, with the option of returning at the the end of the 24 month period and not have to worry about disposing of, or finding a use for it.

 

Please also keep in mind that choosing to have the phone repaired by someone other than Samsung (or the manufacturer of the phone of your choosing) can void the included warranty. Customers that do choose the My Plan Plus option do have the option of insurance for damages incurred, however this would be at an additional cost

The leasing option allows customers to pay up to $10/ month a month less, however this is obviously dependant on handset and plan and as previously mentioned, things like insurance cover. Just as example of this - if you were to choose an iPhone 7 128gb the minimum price per month on a lease is $79/month for 24 month VS $89/month on My Plan Plus.  That's a difference of $240 over that period. 

petergdownload
by Esteemed Contributor
‎2017-05-04 11:32 AM

 Appreciate the feedback. 

 

Optus is giving consumers the choice on this, but I'm just perplexed about how poor option number 2 (Flex) is. Perhaps Optus plans to differentiate the two method's strength and weaknesses later on?

 

I really can't picture any individual spending thousands on a phone and plan having difficulty deciding what to do with it after two years. Aside from throw it in the bin, many simple options like give it to a friend, drop it in a recycle bin at a shopping centre, keep using it or put it in a drawer. But perhaps some people find that too much hassle Smiley Wink

 

If cost is a factor, and saving between $4 and $10 a month on a $2000 purchase then presumably customers will be alert to the possibility of selling the handset after 24 months. A 128Gb iPhone 7 wouldn't sell under $500 after two years so the $240 savings suddenly becomes a $260 loss. 

 

Good point on the warranty, however My Plan Plus customers get the choice to decide if they want to risk voiding it by saving money on repairs. There is no such choice if the user is leasing the phone.

 

These things coupled with the $250 - $500 penalty fee if a customer does (the faily possible and) damage or lose the phone makes the flex option seem overly risky. Sure users can insure via Optus but if they lose their phone the cost of making a claim and the 24 months premiums = $536 anyway.

 

But as I said, Optus is providing the choice and you can't do better than that. I just think that whoever has designed the Flex lease package should go back to the drawing board on this one. All I can see is a lot of angry customers down the track being stung with fees and charges and limitations that they haven't properly considered before signing on. Not suggesting Optus isn't making all this information very available - but that's not going to make customers any happier down the track IMO

 

Regards

 

Peter Gillespie