Appliance Rental, Rent-to-own, leasing or subscription?
How does it all work!
Appliance Rental, Rent-to-own, leasing or subscription? How does it all work!
Getting your hands to the latest dishwashing or laundry technology is no longer a challenge for households in Singapore.
Rent, rent-to-own, leasing, and subscription are all different ways to obtain access to appliances or access to benefits of using an appliance for a specific period, and each has its own unique features and benefits.
As per ChatGPT
“Rent: Renting involves paying a fixed amount of money to use a product or service for a limited time. The renter does not own the item, and they must return it once the rental period ends. Renting is a good option for short-term needs or when the product is too expensive to buy outright.
Rent-to-own: Rent-to-own allows customers to rent a product for a set period with an option to buy it at the end of the rental period. Customers typically pay a higher rental fee to build up equity in the product, and if they choose to purchase it, the equity is used as a down payment. Rent-to-own is a good option for people who cannot afford to buy a product outright but want to eventually own it.
Leasing: Leasing is similar to renting, but the customer typically uses the product for a longer period and pays a fixed monthly fee. Leasing is a popular option for expensive items like cars, where the customer can use the car for a set period and then return it to the dealer. The customer does not own the car but can often renew the lease at the end of the period.
Subscription: Subscription involves paying a regular fee to access a product or service for a set period. Subscription services are often used for digital products like software, music, and video streaming, but they can also be used for physical products like clothing, appliances, or cosmetics. The customer does not own the product but can access it during the subscription period.”
The right choice of course depends on your specific needs and circumstances. In general, appliance renting, leasing, and subscriptions are excellent way to access the benefits of the appliances.
What are some common reasons of Renting, leasing, or subscribing to an appliance in Singapore?
- Renting or subscribing to appliances matching the duration of your home rental – this is perfect for landlords or tenants.
- Trying an appliance, you have never used before or do not use on a regular basis – example a Dishwasher just for few months before you make a purchase decision. (Try before you buy!)
- Premium Services – typically only subscription services offer premium repair, replacement or warranty offers with appliances.
- Getting high value appliance – with long-term leasing or subscriptions – you can have access to the high value appliance without any major upfront cost.
- Getting your BTO keys soon but not ready for dream renovation – many users in Singapore are delaying renovation investment to manage their cash flow. Fridge and Washer Appliance rental and subscription becomes a perfect fit.
- Upgrading or getting latest tech – many users in Singapore want the latest appliances - this is very common in products like Robot Vacuum and Air Purifiers. Rental and Subscriptions are a great solution for this ‘Upgrade anytime’ need.
- Younger generation – there’s a generational shift, Millennials and GenZs prefer to experience benefits / get access to benefits instead of owning this. We see this shift in all sectors. Example: experience the benefits of a shared laundry machine and only paying their share per use.
- Co-living spaces, worker dormitories, universities, hostels, service apartments typically rent, lease, or subscribe to appliances for their residents.
Let’s compare appliance purchase to rental, rent-to-own, leasing and subscription.
|
Comparison Factors
|
Purchase
|
Rent
|
Rent-to-Own
|
Leasing
|
Subscription
|
|
Warranty
|
Appliance comes with 1 to 2 years warranty.
|
Depends totally on who you rent it from.
|
Appliance typically comes with warranty during the rental period.
|
Appliance typically comes with warranty during the leasing period – but it highly depends on the platform offering it.
|
The appliance is under warranty throughout the subscription period.
|
|
Extended Warranty
|
To cover yourself against repair costs, you may need to subscribe to extended warranty packages
|
typically, not available, or inclusive.
|
typically, not available, or inclusive.
|
Not applicable / Inclusive
|
Not applicable / Inclusive
|
|
Price
|
[Baseline]
|
Higher than product price if you rent for longer term.
|
Slightly higher than the product price but depends on the rental duration.
|
Higher than product price over a long period of time – 6 to 7 years.
|
Higher than product price over a long period of time – 5 to 6 years
|
|
Premium Service
|
Most manufacturers offer premium service at an additional cost. Repair time may vary from brand to brand.
|
Does not come with premium service unless you top up/pay additional for a service package.
|
Does not come with premium service unless you top up/pay additional for a service package.
|
Does not come with premium service unless you top up/pay additional for a service package.
|
Inclusive of Premium Service – typically 2 days to 5 days repair guarantee
|
|
Circular or Refurbished Appliances
|
Second-hand appliances are typically available in marketplaces but often come with no warranty.
|
Rental shops may or may not have refurbished appliances. It is unclear if they maintain service standards, warranty, or hygiene levels.
|
It's a new appliance that becomes yours. Some marketplaces may have refurbished 2nd hand-appliances.
|
Leasing house may or may not have refurbished appliances. It is unclear if they maintain service standards, warranty, or hygiene levels.
|
Most subscription platforms will offer refurbished appliances with the same service standard or warranty, and hygiene as new appliances.
|
|
Upgrades
|
You need to purchase a new appliance to upgrade.
|
You need to rent a new appliance to upgrade – this is typically after you have finished your renting. Some platforms may offer upgrade program.
|
You need to rent or purchase a new appliance to upgrade. Some platforms may offer upgrade program.
|
You need to finish your leasing term and then upgrade to a new appliance or purchase a new appliance.
|
Appliance Subscriptions are upgradable anytime during the subscription term.
|
|
Upfront Investment
|
You would need to purchase the appliance and pay for any Extended warranty, Delivery, or installation cost upfront.
|
You would need pay a month’s rent, plus delivery or installation fee. If your rental is by day, then you pay day’s rent upfront.
There may or not be additional deposit collected.
|
You would need pay a month’s rent, plus delivery or installation fee. If your rental is by day, then you pay day’s rent upfront.
There may or not be additional deposit collected.
|
You would need pay a month’s leasing fee, plus delivery or installation fee.
There may or not be additional deposit collected.
|
You would need to pay a month’s subscription fee. The subscription typically in inclusive of delivery, setup, disposal of old appliance etc.
There may or not be additional deposit collected.
|
|
Consumables, Filters & Accessories
|
Buy additional – 1 unit may be included in the purchase of the product.
|
Buy additional – 1 unit may be included in the product.
|
Buy additional – 1 unit may be included in the product.
|
Buy additional – 1 unit may be included in the product.
|
Subscriptions typically come with all-inclusive offer. The essential filters, consumables are all included in the subscription. Read subscription inclusion / offer for more details.
|
|
Comparison Factors
|
Purchase
|
Rent
|
Rent-to-Own
|
Leasing
|
Subscription
|
|
Warranty
|
Appliance comes with 1 to 2 years warranty.
|
Depends totally on who you rent it from.
|
Appliance typically comes with warranty during the rental period.
|
Appliance typically comes with warranty during the leasing period – but it highly depends on the platform offering it.
|
The appliance is under warranty throughout the subscription period.
|
|
Extended Warranty
|
To cover yourself against repair costs, you may need to subscribe to extended warranty packages
|
typically, not available, or inclusive.
|
typically, not available, or inclusive.
|
Not applicable / Inclusive
|
Not applicable / Inclusive
|
|
Price
|
[Baseline]
|
Higher than product price if you rent for longer term.
|
Slightly higher than the product price but depends on the rental duration.
|
Higher than product price over a long period of time – 6 to 7 years.
|
Higher than product price over a long period of time – 5 to 6 years
|
|
Premium Service
|
Most manufacturers offer premium service at an additional cost. Repair time may vary from brand to brand.
|
Does not come with premium service unless you top up/pay additional for a service package.
|
Does not come with premium service unless you top up/pay additional for a service package.
|
Does not come with premium service unless you top up/pay additional for a service package.
|
Inclusive of Premium Service – typically 2 days to 5 days repair guarantee
|
|
Circular or Refurbished Appliances
|
Second-hand appliances are typically available in marketplaces but often come with no warranty.
|
Rental shops may or may not have refurbished appliances. It is unclear if they maintain service standards, warranty, or hygiene levels.
|
It's a new appliance that becomes yours. Some marketplaces may have refurbished 2nd hand-appliances.
|
Leasing house may or may not have refurbished appliances. It is unclear if they maintain service standards, warranty, or hygiene levels.
|
Most subscription platforms will offer refurbished appliances with the same service standard or warranty, and hygiene as new appliances.
|
|
Upgrades
|
You need to purchase a new appliance to upgrade.
|
You need to rent a new appliance to upgrade – this is typically after you have finished your renting. Some platforms may offer upgrade program.
|
You need to rent or purchase a new appliance to upgrade. Some platforms may offer upgrade program.
|
You need to finish your leasing term and then upgrade to a new appliance or purchase a new appliance.
|
Appliance Subscriptions are upgradable anytime during the subscription term.
|
|
Upfront Investment
|
You would need to purchase the appliance and pay for any Extended warranty, Delivery, or installation cost upfront.
|
You would need pay a month’s rent, plus delivery or installation fee. If your rental is by day, then you pay day’s rent upfront.
There may or not be additional deposit collected.
|
You would need pay a month’s rent, plus delivery or installation fee. If your rental is by day, then you pay day’s rent upfront.
There may or not be additional deposit collected.
|
You would need pay a month’s leasing fee, plus delivery or installation fee.
There may or not be additional deposit collected.
|
You would need to pay a month’s subscription fee. The subscription typically in inclusive of delivery, setup, disposal of old appliance etc.
There may or not be additional deposit collected.
|
|
Consumables, Filters & Accessories
|
Buy additional – 1 unit may be included in the purchase of the product.
|
Buy additional – 1 unit may be included in the product.
|
Buy additional – 1 unit may be included in the product.
|
Buy additional – 1 unit may be included in the product.
|
Subscriptions typically come with all-inclusive offer. The essential filters, consumables are all included in the subscription. Read subscription inclusion / offer for more details.
|
Should you own appliances? Would you want to own depreciating assets that value zero at end of life of the appliance? We leave this for you to answer.
So how can you get an Electrolux appliance on subscription via Levande?
1. Select a Product
Pick the latest appliance that fits your needs for excellent performance, practicality, and energy efficiency.
2. Subscribe
Select a subscription plan at a fixed monthly fee!
Just pay a one-time standard security deposit* before the start of your subscription, which we'll return to you once the subscription ends and we pick up the appliance.
*If you sign-up with MyInfo, the standard security deposit is waived.
3. Delivery & set-up
Get your product delivered and set-up within 48 hours*! Our team will set up your new appliance and provide guidance on how to utilize its features to the fullest. Plus, we'll dispose of your old appliance for free!
*Subject to stock availability and Singapore's public holiday schedule.
4. Complete peace of mind
Enjoy complete peace of mind with our hassle-free warranty that covers your product for the entire duration of your subscription! In the unlikely event that you face an issue with your appliance, which cannot be resolved remotely in just a few minutes, we'll provide you with a like-for-like replacement within 48 hours.
If you have more questions about our subscriptions, please review our FAQ section.
You can also connect with us at support@levande.com.sg or levande@electrolux.com