There is much to be said for renting when it comes to electronics and appliances. Renting offers advantages that owning does not; from lower monthly payments to easy upgrades, but the concept of leasing electronics is still relatively new to South African consumers. While the idea of renting electronics and appliances may not be the solution for everyone, it does offer many benefits for consumers looking for flexibility and an alternative to buying on credit. But one South African company is turning the old school idea of rent-to-own on its head with a brand new subscription-based model. Owning and renting is out — subscribing is in!
With its unique model, Rentoza, is leading the pack in the electronics and appliance subscription game in South Africa. With a wide catalogue of products and various subscription packages, Rentoza makes getting your hands on the things you want (and need) a lot more manageable. This begs the question; why buy a TV, smartphone, or gaming console when you can subscribe? We take a look at the benefits of subscription services to help you figure out if it is the right choice for your budget and lifestyle.
Back to the future
Investing in new electronics and appliances can be expensive. From essentials like a fridge, stove, and washing machine to TVs, dishwashers, gaming consoles, and smartphones, getting all the electronics you want and need can run into the hundreds of thousands of Rands. This is why so many consumers rely on hire purchase and credit providers to get the electronics and appliances they need.
But, while outright ownership of electronics and appliances may seem like the norm today, many years ago, renting appliances and electronics was the done thing. Take TVs for example, in our parent’s day, owning a television was simply unaffordable and credit was not as easily available as it is today. As a result, many families rented their TV.
As the prices of electronics fell and hire purchase agreements became commonplace, most people decided to purchase their television. But, with this shift in mindset also came the deterioration of credit records and the increase of debt. Many consumers find that with hire purchase agreements they are locked into a payment plan, and when they run into financial difficulty this results in legal action, repossession and a bad credit record.
Given the uncertainty we face with a weakening economy and higher interest rates, perhaps going back to our grandparents’ and parents’ strategy of rent-to-own is perhaps something we need to consider?
Avoid debt, subscribe instead
Subscription services like Rentoza are the modern equivalent of old school ‘rent-to-own models and address issues of affordability and debt management. The subscription model offered by Rentoza offers South African consumers peace of mind knowing that they won’t get themselves into a debt-spiral trying to pay off items at high-interest rates. “Consumers simply pay an affordable monthly rate, and should they miss a payment, they won’t be blacklisted but the service or product will be revoked”, explains Mishaan Ratan, co-founder of Rentoza. “Essentially, the subscription model is one of trust. In our business, there aren’t many who default on their payments because it is what they can afford.”
With Rentoza, consumers can choose to sign up for a 6 or 12-month subscription plan for the device or appliance they want, paying an affordable monthly subscription fee on the same date each month. What’s more, all products and subscriptions include comprehensive insurance cover from Old Mutual, so you needn’t worry about having to continue paying for the item should it be stolen or damaged.
Rental vs hire-purchase
Using a subscription service to get your hands on much-needed and wanted appliances and electronics offers many benefits for consumers who want an alternative to hire-purchase agreements. Subscription packages like those offered by Rentoza are similar to hire purchase in the sense that you effectively ‘pay off’ the device or appliance over a set period of time, and at the end of the period, you are able to take ownership.
But, the major difference is that it is not a credit agreement. That means at any time you can exit the contract by returning the device. Given the current economic climate, not being bound to a credit agreement that you have to continue to pay irrespective of your financial situation, is a big bonus. Plus, because it is not a credit agreement, it will not impact your credit record.
Of course, if you stick it out until the end of the subscription period, you can then choose to take ownership of the device or appliance or choose to upgrade. With Rentoza, once your subscription period comes to an end, you have the option to keep the item with no additional payments, or return it and upgrade to a new product and subscription, with the cost of your next subscription at a discounted rate. The longer you subscribe, the more you’ll save.
Keep up to date with the latest technology
The option to upgrade is one of the biggest benefits of signing up for a subscription with Rentoza. It’s ideal for anyone who loves to have the latest devices, and those who thrive being rewarded for their loyalty. If you want to make sure you always have the latest version of the iPhone or want to ensure your smart TV is always keeping up with the new technology as it comes out, then the subscription model is for you.
When it comes to electronics, the rapid advances in technology often mean that new products are on the market before you’ve even finished paying off the old one. This is especially true for laptops, tablets and televisions. A large portion of subscription model fans are people who want to keep up with the changing technology and enjoy the flexibility to upgrade their device to the latest gadget without too big of a financial outlay.
Forget about buying gadgets and electronics on credit, Rentoza makes getting your hands on the things you want (and need) a lot more manageable with its easy subscription service model. Rentoza is constantly updating its inventory to give consumers access to the latest technology and consumer experience, so there’s always something new to discover on the site.
Using Rentoza is simple and easy. You search the Rentoza website for the latest devices and appliances from leading global brands. Once you’ve found an item you want, you choose a subscription term for the selected product and then activate your subscription by capturing your debit or credit card details for their first monthly payment via Rentoza’s secure gateway. The product is then delivered to your door within 72 hours at no extra cost. Going forward, you are billed automatically on the same day you activated your subscription every month.
Plus, make sure you sign up to receive email updates from Rentoza for daily deals on must-have electronics and appliances.
To become a subscriber, or for more information, visit the Rentoza website.