ZTE accomplished a better integration of functionality and design with its latest Axon phone, but the price tag clearly reflects those efforts.
In an attempt to extend beyond entry-level smartphones and white label products, ZTE launches a new device financing option, hoping to cater to the needs of the more economical of customers. The financing program may seem like a good idea on paper, but in reality, it is indecently expensive.
SmartPay Leasing will be in charge of the operation, as it has vast experience in offering financial programs for various retailers. Carriers offer significantly better payment plans, but they require a more stable income than SmartPay, which is more lenient with the paperwork.
"We also want the experience of purchasing and using a ZTE device to be easy for any consumer," Lixin Cheng, CEO and chairman of ZTE USA, said.
If you choose to apply for a financing line through ZTE, up to $2,000 can be at your disposal, over a 6-24 month payment term. At the moment of the purchase, there is also a variable payment. Detailed info on the wallet-draining plan is available on the SmartPay's webpage.
For example, a one year, $450 financing for the purchase of the ZTE Axon will set you back as much as $1000 at the end of the 12 months. If it sounds ridiculously expensive, it probably is, but most lease-to-own or rent-to-own programs function like this. What this means is that you don't have ownership over the gadget until you pay every cent of the lease. Fortunately, if you win the lottery in the meantime you can pay the full sum early on, and be charged with 3.5-20 percent fees of your credit.
The ZTE lease not only gives monetary options, but also grants access to new smartphones. If their payments are up to date, lenders can upgrade their handsets in the middle of the payment plan by simply scraping the current financing option and choosing a different credit for a different handset.
Buyers will be able to use the SmartPay option soon, but all common sense dictates against it. Alternatives include, but are not limited to purchasing the smartphone with credit card, as the terms will be more buyer-friendly.
