ZTE jumps on lease-to-own trend for phones

ZTE became the second device maker to offer a direct-to-consumer smartphone lease program Wednesday, with the unveiling of a payment option in collaboration with SmartPay Leasing Inc.

The lease-to-own payment plan will only be available for unlocked devices which include the recently launched Axon Pro as well as previously launched devices like the ZTE Spro 2 Smart Projector.

With SmartPay, ZTE said customers can get an immediate approval to lease ZTE devices, from high-end smartphones to entry-level devices and smart projectors.

The length of a lease plan is determined when you apply and can range from 6 to 24 months. If you’d like, you can pay off the lease early, though, you’ll pay a buyout fee of anywhere between 3.5 and 20 percent. You can also pay off the lease early without penalty.

While Apple has its iPhone 6S installment plan and Samsung has the leasing program, ZTE’s offering is made possible by SmartPay and can be availed online at zteusa.com soon.

ZTE USA’s CEO and Chairman Lixin Cheng believes that “advanced mobile technology should be available to everyone” that is why the new leasing options are being offered. The program is being launched in the United States, and appears to be an effort to compete with the monthly payment plans that several carriers have introduced. It remains to be seen how well people will take to the new program, but it’s a good thing if you’ve been hoping more manufacturers would jump on the financing bandwagon. “We also want the experience of purchasing and using a ZTE device to be easy for any consumer”.

Those who have one of the ZTE phones on a lease, assuming it doesn’t have any due payments, can turn it in to get the lease cancelled and a new one started – a way to upgrade to a new device. “How customers want to pay versus the amount they are comfortable paying are equally important – and ZTE can provide the best of both worlds”. Different plans will be offered based on qualifications. Instead, you can cancel your lease at the end of the term, or you can renew at a lower cost.