You probably already have a modem provided by your 5G home internet service provider if you have broadband internet. Is it better to rent or purchase a modem? This guide will help you make informed decisions about buying or renting a modem.

What does a modem do?

Two things are required to make your WiFi work in your office or home: a router and a modem. The router connects to the modem using an Ethernet cable. It then broadcasts the internet to your home. The modem connects to your wall's phone jack or coaxial cable. The modem interprets and converts the incoming internet signal into the language your digital devices can understand.

Modems and routers can often be combined to create a wireless gateway. Most likely, the equipment provided by your service provider is a combination of these two devices. If you have additional online needs, you may want to purchase them separately. This will allow you to update the equipment for your home network.

Internet Service Providers (ISPs) rent modems to simplify connecting their customers. Many internet users don't want to tweak their network or hardware settings. They want their internet to work without glitches.

ISPs can rent modems to customers, which is a great way to make money. Customers prefer to have one service provider over multiple.

Modem renting vs. buying a modem

It is difficult to decide which option is better and more economical in the long term. You might be wondering how to rent or buy a modem. We will help you choose the best modem for you.

What's the difference between renting and buying?

It is simple to buy a modem. You can visit a service provider or order one online. Then you can choose the modem that suits your needs the best. It is possible to buy your modem separately for less money than renting it. You can rent a modem by contacting your local ISP. Many ISPs offer a modem to rent with an internet plan. Some plans include rental fees, while others charge rent separately.

How much is renting vs. purchasing?

A modem can be purchased for $60 to $120. Renting one is $5-$10 per month -- much more over a longer period. You will have already paid more than a year's rent if you buy.

The pros and cons of renting versus buying

Renting a modem is a great option because they often come with free repair and customer support. A rented modem is guaranteed to work with your internet connection. You also get regular software updates that will ensure a great internet experience.

After the warranty ends, you may need to upgrade your equipment or repair it. They are your responsibility to fix them. Customer support options are limited once the warranty has expired or the device is too old.

Comparison of renting and buying

Every month rental fee is much higher than the cost of purchasing a modem. It is cheaper to rent a modem every month than purchase a modem. In most cases, the one-time expense will be offset within a year to two.

How to rent a modem

Renting can be cheaper in the long term, but it is sometimes a better choice in some cases. These are the top reasons renting is a good option.

Moving to another location

Renting is a good option for temporary solutions. Renting is a fine option if you are moving and don't know your internet options. Your new service provider might not accept a modem you bought.

If you wish to switch ISPs

Most ISPs recommend using your preferred modems to ensure compatibility and speed. Renting is a better option in such situations, as you won't have to deal later with connectivity issues caused by an incompatible modem.

If you don't wish to deal with the tech part

Modems can be configured quickly, but many people don't want the hassle of configuring the router and cables. Tech support will not assist you if something goes wrong when you configure the modem.

If you're not certain which modem is best,

Many models are available, so it can be difficult to choose the right one, especially if your tech skills are limited. The provider will select the best device for you, so renting is an option.

What is the best time to buy a modem?

If you are looking to save money

You can purchase if you are looking for a quick solution and a more economical option. Although purchasing requires an upfront investment, the savings over renting will be $60-$120 each year.

If you desire better network coverage throughout your home

A combo device combines a router and modem that provides standard WiFi coverage. It can connect a few devices and is recommended for households with smaller homes. Regardless, if you live in a larger house, more than 2,000-3,500-square-feet, you will need a long-range WiFi router to get reliable coverage. Long-range routers will allow you to connect more devices to your network. You will need to purchase either a separate modem or a powerful combination device.

Do you want the most recent equipment?

If you look to secure your future, a modem is a good investment. The latest devices that conform to DOCSIS 3.1 specifications will provide better connectivity and comparable speeds across all connected devices. These modems can support speeds of up to 10 Gbps and are useful for gigabit internet connections.

You can manage technology easily.

Buy is an option if you are willing to pay for limited tech support and fix your modem independently.

Consider these things when you are thinking about buying a modem.

Maximize your investment by getting a modem that can support all of your household activities. To ensure the best experience, know what minimum download speeds are required. Consider buying separate units if you are thinking about upgrading your broadband speed or home network.

Before you rush to buy a modem, make sure it is compatible with your ISP. You can also call your ISP to find out if they plan to upgrade their services shortly. This will allow you to plan for the future.

Bottom line

Both are renting and purchasing a modem have their pros and cons. In the long term, buying is usually more economical. Renting is a good option if you are looking for a temporary solution and avoid compatibility issues.