Cell phones - purchase vs monthly payments

[Astro14]

I just buy the phone I want, from Apple, typically, and have it put on my Verizon number. I have a 16 Pro, 512. It cost about $1,100 after discounts. I get 10% off for military from Apple. Not a lot, but sure better than full price.

In @Patman example above, $40/month = $960 and a $400 buyout? $1,360? That’s no bargain, compared with my 16 Pro (maybe the exchange rate is worse than I realized).

I’m not tied to a provider or even a service plan within that provider.

I don’t see the savings of having the provider (say, Verizon) give you an interest-free loan if 1. The price is higher than over the counter from the phone maker and 2. You’re locked into a particular plan.

 

[Patman]

I just buy the phone I want, from Apple, typically, and have it put on my Verizon number. I have a 16 Pro, 512. It cost about $1,100 after discounts. I get 10% off for military from Apple. Not a lot, but sure better than full price.

In @Patman example above, $40/month = $960 and a $400 buyout? $1,360? That’s no bargain, compared with my 16 Pro (maybe the exchange rate is worse than I realized).

I’m not tied to a provider or even a service plan within that provider.

I don’t see the savings of having the provider (say, Verizon) give you an interest-free loan if 1. The price is higher than over the counter from the phone maker and 2. You’re locked into a particular plan.

Keep in mind that $1,360 Canadian is actually $975 US. Plus I forgot to factor in that my $40/mo includes the 13% tax. Taking that away, I actually paid $1240 before taxes, or $889 US

 

[4wd]

The free payments are sometimes tied to slightly more expensive monthly plan coupled to a 24 -36 month term that you will remain on their network. Occasionally fines to even pay phone early and leave them.

Yup, some don’t have $1200 cash - want a good smart phone.

 

[Astro14]

Keep in mind that $1,360 Canadian is actually $975 US. Plus I forgot to factor in that my $40/mo includes the 13% tax. Taking that away, I actually paid $1240 before taxes, or $889 US

Ah, OK - for a 16? Seems a bit high, then, depending on memory. My 16 Pro 512GB was near the very top of the scale when I bought it, but that was over a year ago.

A 16 starts at $699 - with 128GB. That’s the only option I see on Apple’s site, which admittedly, is the US site.

Not to pick on you, but back to the point - buying the phone, even interest-free, through the carrier, isn’t always the lowest price, and it may lock you in to a plan or carrier for two years.

I grew tired of parsing all the “deals” and “promos” and “credits” and finding out that I was paying as much or more for the phone than if I just bought the thing directly from the manufacturers. The pricing and cost were so buried in the paperwork that it felt like a better deal to finance it through them, but it wasn’t.

Now, if I want an iPhone, I order it through Apple, get exactly what I want (with free engraving) and wait for it to arrive, or pick it up (no engraving) at the Apple Store. My iPhone 8 and iPhone 12 are still operable, by the way, should I need a backup.

 

[Patman]

Ah, OK - for a 16? Seems a bit high, then, depending on memory. My 16 Pro 512GB was near the very top of the scale when I bought it, but that was over a year ago.

A 16 starts at $699 - with 128GB. That’s the only option I see on Apple’s site, which admittedly, is the US site.

Not to pick on you, but back to the point - buying the phone, even interest-free, through the carrier, isn’t always the lowest price, and it may lock you in to a plan or carrier for two years.

I grew tired of parsing all the “deals” and “promos” and “credits” and finding out that I was paying as much or more for the phone than if I just bought the thing directly from the manufacturers. The pricing and cost were so buried in the paperwork that it felt like a better deal to finance it through them, but it wasn’t.

Now, if I want an iPhone, I order it through Apple, get exactly what I want (with free engraving) and wait for it to arrive, or pick it up (no engraving) at the Apple Store. My iPhone 8 and iPhone 12 are still operable, by the way, should I need a backup.

Keep in mind as well that we pay higher prices up here for a lot of things plus the price was higher on the 16 in November 2024 because it was just released and the price on a new 16 is lower now that the 17 is out.

 

[Astro14]

Keep in mind as well that we pay higher prices up here for a lot of things plus the price was higher on the 16 in November 2024 because it was just released and the price on a new 16 is lower now that the 17 is out.

All good - I think that my point is - “interest free” financing isn’t always a good deal.

And saving interest on $800 isn’t going to make or break me, either way.

I would rather look at the plan, and the carrier, as one aspect of having a phone

Decide on the device and how to pay for it, as a completely separate transaction.

It sounds like you’ve done that, then.

Cheers

 

[dishdude]

I do miss the days when my cell phone provider gave away free brand new phones (or you might pay $50) They would typically give away the previous model for free right at the time when a new one was coming out. All you had to do was sign a new two year contract with the provider. So this is actually the first time I’ve ever paid full price for a cell phone and I got my first cell phone in 1991 or 1992!

Those days were terrible! They'd give you some cheap phone and lock you in for two years in an overpriced contract with limited minutes and texts. Data wasn't even a thing and the monthly rate was $90-$100.

I'd much rather pay full price for the phone direct from the manufacturer and get a month to month phone plan. Puts the power back in the consumer's hand.

 

[wander2039]

Looking at TMobile this morning if I would the monthly payments a iPhone 17 Pro would be around $800 but over $1000 to purchase outright. Seems odd. We typically just do the monthly. I've had my 13 since 5/2022 and about to pull the trigger. The charge port on the 13 has a connection issue if the cable isn't just right, tried cleaning it to no avail. Now the brightness has a mind of it's own, the auto setting has worked so dunno. Back glass is cracked also. Wanted to make it 5 years but in 20 years will it matter?

 

[CKN]

Looking at TMobile this morning if I would the monthly payments a iPhone 17 Pro would be around $800 but over $1000 to purchase outright. Seems odd. We typically just do the monthly. I've had my 13 since 5/2022 and about to pull the trigger. The charge port on the 13 has a connection issue if the cable isn't just right, tried cleaning it to no avail. Now the brightness has a mind of it's own, the auto setting has worked so dunno. Back glass is cracked also. Wanted to make it 5 years but in 20 years will it matter?

My wife has an iPhone 15 we just finished a T-Mobile contract on. It cost us $7.00 monthly (over allowance) for two years. I have a Samsung Phone S24 that cost me nothing . Both were through monthly credits. I talked to the guy at the T-Mobile Kiosk yesterday at Costco. The new S26 would cost me $6.00 a month for a new one. The guy was honest with me and there are not enough differences between the two to even warranty the $6.00/month. That's the issue with cell phones these days, they are getting so advanced that improvements from one model to the newer ones are now very small and incremental.
I can get a Google Pixel 10 and pay nothing out of pocket. But then again there are not really any advantages to do so.

 

[QwikKota]

I typically buy used unlocked phones on eBay for about 1/3 of the cost of new, albeit a 1 year or so old. My Wife does the whole trade in and get the newest phone for "free". We went to do the same for my Son and lo and behold, his line has her phone discount applied. Verizon told us to add an entirely new line or pay off the balance of my Wife's phone. She is on iPhone 14 but still owes $200 on the darn thing. The store said to just keep 5 lines until the phone is paid off. I looked at them crosseyed after doing some quick math in my head. It would be half the cost to just pay off the phone and cancel the old line. Ain't nothing free in life.

 

[Rmay635703]

You are correct. I don't need the "services." I don't even know what the "services" is.

I think this is the link that you requested.

If that worked on an iPad I would grab a $10 plan.

Every place lately won’t alacarte a tablet without feeling like your making a house payment.

 

[Patman]

Those days were terrible! They'd give you some cheap phone and lock you in for two years in an overpriced contract with limited minutes and texts. Data wasn't even a thing and the monthly rate was $90-$100.

I'd much rather pay full price for the phone direct from the manufacturer and get a month to month phone plan. Puts the power back in the consumer's hand.

It wasn’t terrible for me. I would get a brand new iPhone that was only one generation behind for free and my cell phone contract was always a good deal because I stuck with the same provider the entire time. I never paid anywhere near $100 a month back then. I’m not even paying that much now and I get 75gb of monthly data plus unlimited nationwide calling and texting.

 

[alarmguy]

You are correct. I don't need the "services." I don't even know what the "services" is.

I think this is the link that you requested.

The services would be data.
Most people if not all using a modern day smart phone will use at least one gig of data a week.
The $10 plan is only one gig of data for a month.

 

[fat biker]

What do I know?
I have a $50 Android Motorolla Smartphone with $15/month Tracfone service.
I expect to one day upgrade to an iPhone, but certainly not a new model.
Me cheap?
You bet.

 

[dishdude]

What do I know?
I have a $50 Android Motorolla Smartphone with $15/month Tracfone service.
I expect to one day upgrade to an iPhone, but certainly not a new model.
Me cheap?
You bet.

The $50 Android probably does everything you need.

 

[Marrk]

The services would be data.
Most people if not all using a modern day smart phone will use at least one gig of data a week.
The $10 plan is only one gig of data for a month.

Not me.

 

[alarmguy]

Not me.

I know! Big savings for you since you dont need much data. IN fact, USMOBILE has a $10 plan that gives you double the data (2gb), unlimited text and talk including international plus hot spot and you can choose any network that you want. T-Mobile, ATT or Verizon and for $2 you can switch between networks anytime you want. (just a fun thing but might be value to those who are in a rural area)

Not only that but the $10 is the actual payment, it includes tax too.

Just posting for others who need the same type of service.

 

[KMFDM]

I just purchased 2 new phones and paid in full for 3% cash back

 

[alarmguy]

I just purchased 2 new phones and paid in full for 3% cash back

Cashback is a wonderful thing, there is never a purchase that my wife and I make without cash back

 

[fat biker]

The $50 Android probably does everything you need.

Yes, I typically only use the phone, contacts, calendar and shopping list.
I expect to switch to iPhone at some point.
2 reasons, Apple has many more devices in service, making for better coverage for air tags versus Tile which I use now.
Also, I really like Apple products and am done with Windows.
Happy for now with my gifted budget Chromebook.