When a rent-to-own PS5 or Xbox Series X could be cheaper than buying

Cash-strapped South Africans who want to get one of the latest video game consoles can consider getting a console on a rental if they cannot afford to buy one outright or don’t qualify for credit.

However, although the monthly payments on a rental may not seem that high, the total cost over the duration of the agreement can be excessive — especially if you wish to convert from rental to ownership.

Few people can afford to buy the latest video game consoles for cash, which means many people would rather pay them off on credit.

While this makes the consoles more affordable in the short term, the interest can add up over time.

However, this option is not available to all South Africans. Getting access to credit requires an established track record of payment compliance.

Several online stores offer tech device rentals in South Africa, with a prominent option being Rentoza.

Rentoza’s subscriptions do not require users to undergo credit checks like those necessary for credit cards, loans, or other credit facilities.

The only requirement is that a user be verified, which means they must provide an ID, photo, proof of address, and proof of banking details.

Users must also pay for their subscriptions upfront, whereas the premiums on a cellular contract or budget credit card facility are postpaid.

Rentoza’s subscriptions can be taken over three, six, 12, or 18 months, with the option to purchase the device for a buyout fee after the agreement period lapses.

If a customer chooses to buy the device earlier than the expiry of the agreement, they will still have to pay all the remaining premiums in the rental.

MyBroadband looked at the total cost of renting five popular video game consoles from Rentoza over six, 12, and 18 months.

We compared this with the costs of buying the same consoles using a credit card budget facility with the maximum worst-case interest rate of 21.75%. This may apply to people with unproven credit track records.

We found that Rentoza’s options could be the better deal depending on your choice of console but that the credit card route was generally more affordable.

The Xbox Series X was cheaper to buy via the rental route than on a credit card for all three terms.

Customers who opt for the shorter 6-month payment period on the PlayStation 5 Standard Disc Edition will also be paying less than on the credit card.

The table below compares the costs of renting five popular gaming consoles through Rentoza to buying them on a budget credit card facility with a very high interest rate.

Other scenarios where rentals make sense

Aside from saving on certain tech when opting for a rental over a credit card, there are other cases where a rental makes more sense.

Businesses in particular may want to rent devices for special events over a short period and could save money over buying a device they will rarely use.

Those looking for the shortest rental terms can also consider Teljoy instead of Rentoza, as it offers month-to-month agreements with no cancellation fees.

However, Rentoza may be the best option for those who are seriously considering buying after rental, as Teljoy requires a minimum rental term of 36 months before giving the option to buy the device.