Should You Rent or Buy Your Modem?

Buying vs renting is a much more intense debate if we're talking about homes. But when it comes to modems, the debate has much lower stakes. Still, saving any penny can make a difference, especially when the cost of everything is going up.

Here's a quick comparison of renting vs buying, a comparison of rental costs from different companies, and tips for purchasing your own modem.

Read our related article if you want to know more about what modems are and how they compare to gateways and routers.

Renting vs. Buying Modems

A modem is a device that connects you to the internet through a wire. Most modems are combined with routers, which transform them into gateways. Keep this in mind when shopping around for modems, gateways, routers, and other types of internet equipment.

Like other kinds of equipment, you have the choice to rent or buy. When you buy, you pay a large upfront cost. When you “rent,” it's really more like leasing the modem. You pay monthly to keep and use the modem, but there are perks that go beyond standard renting. We'll go through those later.

Most internet service providers (ISPs) offer equipment rental services. But if you want to buy your modems, you'll have to contend with some extra steps.

Why Buy Your Modem – Pros & Cons

The big reason people buy a separate modem away from their internet provider is cost. When you pay upfront, you can save a lot of money. Most modems that work with your internet cost less than one year of rental, saving you money in the long run.

Those who purchase their modems also have a lot more control. For example, these modems can support specialized features, like advanced WiFi settings or a VPN. Having more control over equipment lets you keep your favorite type of modem with the best features.

Of course, if you buy your own modem, everything is up to you. Equipment repair services, which often come with rental fees, must be handled by you. In some cases, you'll need to make frequent replacements if your ISP decides to stop supporting your router. This situation can happen even if the router is still functional.

Router owners must also take extra steps to find the right features. Buying a router can be frustrating for customers who don't have technical knowledge or time to figure it out.

Pros	Cons
No monthly equipment fees	No included equipment replacement or repair services
You can get a higher quality piece of equipment	You must take extra steps to find the right features
Can configure advanced settings	Managing your own equipment requires some technical knowledge
You can pick your favorite features	Your ISP might not support your modem (or choose not to support it)

Why Rent Your Modem – Pros & Cons

When renting your modem, you don't have to worry about it. Things like download speed, type of modem, and the compatibility of the device are unimportant. You just need to do some general troubleshooting to set it up and take a few extra steps to maintain a stable internet connection.

Renters also get better customer service. Part of paying for those rental prices includes regular access to replacements and repairs. You can also easily return the modem when you're done, saving you from needing to properly dispose of it.

The drawback is that you have to pay for this service. The extra cost of renting equipment can be anywhere from $5 and up. When you add this up, this costs much more than buying a modem outright.

You also don't usually get to be picky with your modem. You may not be able to find a wireless router with built-in VPN and the latest Wi-Fi 6 technology. Instead, the technical specifications are just enough to handle your internet plan.

In some cases, ISPs might have less-than-stellar customer service moments, providing you with an older router. So, a rented router doesn't automatically result in a better customer experience. Thankfully, you can figure this out by checking out the owner's manual.

Pros	Cons
Modems can be regularly replaced as upgrades come out	Extra monthly costs
You don't need to take extra steps to find compatible modems	You don't often get to pick your router based on desired features
Extra customer support and capabilities for these customers	There are limited (if any) customization options
You can return your modem when you're done, making it easy to dispose of	You might end up with an older model modem

How Much Do ISPs Charge for Modem Rentals?

Rental costs vary depending on each ISP, ranging anywhere from $0 to $20 per month. While it might seem that going for the ISP that charges zero is better, this cost is often built into the internet plan. So, keep the overall costs in mind when choosing an ISP.

Below is a summary of rental costs for different internet providers:

ISP	Rental Fees
Xfinity	$15
AT&T	$0
Cox Communications	$5.99
Frontier	$0 to $10
Verizon	$0
Spectrum	$0

More internet companies these days are going with the “no monthly costs” with getting your modem. This makes sense, as it looks good on advertising. Plus, companies that offer modem rental services have been called sketchy, charging fees when they shouldn't need to.

Satellite internet providers, not listed above, have their own pricing options. From our review of the top satellite providers for gaming, you can pay either one-time fees or monthly leasing plans. The additional repair service is not included in the monthly payment. Additional fees are required for repairing satellites and related internet equipment.

Tips When Buying Your Own Modem

Naturally, most people prefer to avoid any modem fees (even if they include repair services). So, if you've chosen to buy your own modem, here are some things you should look for:

Features: Look for features you'll actually use. These features include whether it's wireless, how many ethernet ports it has, and the kinds of wireless connections it supports. If you're confused, don't be afraid to ask the customer support team of any modem company.
Cost: Monthly internet rental fees eventually exceed the cost of your modem. Pick a modem that has the features you need that won't break the bank. modems can last for two to three years, but if it costs two to three years of rental costs upfront, you might reconsider.
Know Your Internet: Before you shop, you need to know about the internet speed and type you pay for. For example, fiber-optic internet requires a specialized gateway in some cases. So, if you buy a cable modem, you won't be able to use it. Get a modem that fits your internet and your feature needs. Use our tool to find internet providers in your city or you can search for internet providers at your address.

Final Verdict – Should I Buy or Rent My Modem?

If you're looking for a more definite answer, here are our thoughts:

If the rental costs nothing, stick with the rental in most cases. ISPs charge you the same amount in either case, so it won't make a difference.
If the equipment rental costs something, calculate whether the one-time payment will exceed the monthly rental costs over the next two years. Modems usually die after a couple of years.
If you aren't technically savvy, prefer the modem rental option. This will save you from some troubleshooting headaches.
If you are technically savvy and want advanced features in your router, purchase the router elsewhere.

Despite it being frustrating having to tack on another fee for your internet, a “rental fee” is more of a “leasing fee.” Like leasing a car, you sometimes need to take it in for a regular checkup. Although, if your modem has oil, something has gone terribly wrong.

Regardless, we hope that this guide helps you better understand whether to rent or buy a modem.