All of this means that between the option of grabbing a supposedly subsidized phone that has disappeared, more phones coming onto the market, and rising prices for those phones, it`s no wonder some consumers are evaluating their financing options. £1000 phones will be a stretch for the vast majority of people, and that`s what contract plans are the most popular way for people to buy phones. But there are strong practical and philosophical reasons to pay the higher initial price instead of committing to a two-year contract to get the lowest price. Last but not least, we look at the actual cost per month and over the course of a year when you compare a prepaid cell phone plan to a contract plan. The cheapest plan for the mid-priced Samsung Galaxy A51 looks like a good deal from Woolworths Mobile. This plan has a reasonable amount of data of 18GB. The cost is just over $1,000 over 24 months, but the plan offered is over 36 months with cell phone refunds of $17 per month. You`re not bound to a contract, but if you want to leave after 24 months rather than 36 months, you`ll have to pay $204 ($17 x 12) to own the handset directly. An interesting bonus is a 10% discount on your groceries at Woolies once a month.
Different retailers and telecom companies offer different prices for handsets and plans, so it may take research to determine who has the best deal and how much, if any, you`ll save. We will take the latest iPhone and Samsung Galaxy models as an example to demonstrate the cost difference when you buy your phone directly compared to a contract. You can always shop around to find the best contract deal. Some contract offers include free gifts such as tablets, game consoles, TVs, and other gadgets. You can also get cash back offers from retailers, but these tend to come with stricter conditions. Getting an eye-catching free gadget could definitely be the winning factor for the contract-SIM debate, so be sure to check them out. On the surface, it may seem that the reason people prefer to rent their phones rather than buy them is simply because they always want to have the brightest new toys. This may be the main factor, but it`s also about how you use your phone and will continue to use your phone for years to come. For some, there is little or no value to a phone after a few years, so trading it actually makes more sense financially. A few years ago, buying a phone with a plan was the only option for most people who wanted a decent quality smartphone. But thanks to the influx of Chinese phone brands in recent years, the price of smartphones – good, high-quality smartphones – has dropped dramatically. Similarly, Apple`s iPhone 8 Plus — another great device — is available for $329.99.
This is a big problem because you get a solid phone with a big screen, long battery life, and a decent camera. The iPhone 8 Plus will also receive iOS updates until the mid-2020s. For a little more, you can also get the iPhone X for $484.99. Also, this phone is amazing and unlike the iPhone 8 Plus, it`s based on Apple`s latest design language, which means it doesn`t mean a home button and an all-screen front. Here are some calculations. You pay $230 for a $720 smartphone. They still owe $490. To get the phone for $230, accept a two-year contract. This contract requires you to subscribe to a plan that costs at least $75 per month; over two years, it is $1,800. If you have your own phone, you can get the same features with a 10% discount for $45 per month or $1,080 for two years. That`s a difference of $30 a month; 24 months x $30 = $720. Another trend that has emerged recently in wireless plans is the exchange offer.
In the past, you`ve probably seen ads promoting the latest iPhone at a lower price (or even free) with a legitimate exchange. Such promotions can make the price a little easier to swallow, but it`s worth taking a closer look at what`s needed. Taxes and additional fees are usually included in these costs, so there are no additional monthly surprises. Even with prepaid networks, you can bring your own device or buy a device directly (although some like MetroPCS have significant discounts on phones throughout the year). You have two options when searching for a new phone on the Internet. The most popular choice is to enter into a contract that pays for both the service and the handset. But another increasingly popular option is to buy your handset directly and choose a simulation-only network. Whether or not you`re on Holly`s side on this, another reason you want to buy your new phone right away is that you can enjoy the freedom offered by an unlocked phone.
Ironically, many cell phone buyers have balked at the idea of signing a two-year contract to get a new phone, but many are still tied to telecom contracts because they finance or lease their device. If you really want to be disconnected from a network and don`t want to worry about monthly payments per device, it may be a good idea to only pay in cash (not literally cash, as you want those credit card rewards) upfront. What experiences have you had with contract plans versus prepaid plans? Your thoughts are welcome in the comments. If you`ve read all of the above and still want to buy a phone right away, what are the best options? Based on my experience — more than 10 years in tech journalism — you`ll always be better off with an old flagship phone from someone like Apple than with a newer, cheaper phone from a budget phone brand. .