If you are facing the decision about whether to buy or rent your company’s next VoIP phone system, it can be pretty intimidating. There seems to be so many great “deals” out there, including those free phone offers. Avoiding a large capital outlay makes renting sound ideal, but a free phone? Why pass that up?

There is no “right” answer when it comes to renting vs owning your own system. It is mainly a matter of which works better for you and your business. Let’s take a look at the facts to help you determine which is the better choice for your unique business needs.

The 4 Major Differences

  1. Renting your phone system means the equipment is guaranteed for life. If any of the equipment should develop problems or become inoperative, it is repaired or replaced. Purchased phones are your responsibility after the manufacturer’s warranty has expired, which is usually one year.
  2. When the rental term is finished, you can get new, upgraded equipment if you desire. This option is very attractive when you consider that technology changes at least every 12 months. Compare this with the cost of paying for a new phone system every 36 months. You might not need or want to upgrade, but this is something to consider.
  3. Renting offers a fixed monthly payment. Many small businesses prefer this to the sizable, up-front cash outlay that is often required to purchase the phones and equipment.
  4. Many large internet companies offer special pricing and free phone systems for new customers if you buy the system and sign up for their service for a set number of months (usually 36). This can offer new businesses a substantial savings in initial outlay.

You might already be aware of these differences and still may have a difficult time with your decision. Let’s look at the pros and cons, or as we like to call it, the truth about renting vs buying.

The Truth about Renting vs Buying: Equipment Repairs

One of the attractive things about leasing is that you never have to be concerned with repair or upgrade costs. Leasing the phone system means that if something should happen, whether it’s a problem with the phone or the hardware, the company you lease from is responsible and this cost is included in your monthly rental fee.

Purchasing a system means that, after the warranty period, repairs or upgrades are your responsibility. If you decide to purchase your system, Open One offers other warranty options that give you the security of knowing your phone system problems will be taken care of for a reasonable fee. Very few VoIP companies will offer you extended warranties for purchased phone systems.

The Latest Technology

Leasing also offers you the latest technology and equipment. Because you can trade in or upgrade your phone service every 36 months, many companies like the idea of having the latest and greatest phone service available to them without a pricing increase (or perhaps a minimal increase, depending on the financial climate at the time). Similar to car leasing, many people feel comfortable knowing they have a new car every few years and rarely have issues with breakdowns.

If you feel that your company won’t be needing anything fancy or new in the upcoming decade or beyond, you may prefer to know your system is paid for. This is similar to consumers who choose to purchase their vehicles. While the cost outlay can be more up front, the phone system will eventually be paid off and the monthly costs will be reduced. Some companies also feel that owning their own phone system and having an internal IT department makes their business more secure.

Cash Outlay

One of the biggest incentives for leasing or renting a phone system vs buying one is avoiding a large outlay in cash. However, there is something to be said for having equipment that is paid in full and eliminating yet one more monthly expense. Yes, you still need to pay for the service, but that is true regardless of whether you rent or buy your phone system.

If you want to rent, large VoIP companies will only offer you one or two phone systems to choose from. If these don’t suit your needs, you will be pushed to purchase a different phone system. At Open One, we offer a wide variety to choose from whether you lease the phone or decide to purchase a system.

‘Free’ Phones

The truth about those “free” phones is that nothing is really free. This is an advertising ploy to get you to call and meet with representatives, who will immediately try to upsell you to a more expensive system.

Even if you opt for the free phone system, you will quickly discover that these phones often don’t have the features you want or need. Some companies will tell you that, yes indeed, these free phones do X, Y, and Z. But what they don’t tell you is that in order for the phones to do this, you need to memorize codes that make them work, such as pressing #18852% to transfer calls. Let’s be honest: In today’s touchscreen world, who wants to write down a list of codes?

To be even more brutally honest, free phones are junk. They won’t last much longer than the one-year warranty, even though you probably signed a contract for 36 months of service. This ensures that the Big VoIP company is going to hook you up with a very expensive system. We haven’t even discussed the down time that these phones will cost your company.

Take our advice: Don’t fall for the free phone scam or the super low introductory pricing. Most of the big companies bait you with that super low price, but that price doesn’t include taxes or many of the features you want. These prices are also only good for one year, even though you signed up for a longer contract. Imagine the shock of thinking your budget for the phone will be X, only to discover a year later that you are stuck with a much higher price for the next two years.

How Open One Can Help

Whether you rent or buy your phone system, we want you to know that Open One will help you make the best choice for you and your business. We aren’t here to trick you into some introductory pricing. We help you plan as needed for your business by being open and honest about what features cost and what you will pay, including taxes.

In addition, Open One is a local business that sends real people to your company to setup, install and show you how to use your new phones. You can spend your valuable time on your business, not on your phone system. Many of the Big VoIP companies will drop ship the phones and give you a link to an online video for setup, installation and operation. Imagine spending hours on the phone or online chat trying to figure out why the phones don’t work?

Want to know more? Call Open One today at 312-780-1010 so we can discuss your company’s needs and how Open One can help your business get the best phones and services for the best price.