Does it always make sense to pay up front?

corblimey

So I'm in the market for a new phone this Xmas. I'm currently on a sim-only deal with VF, and I can get the handset I'm interested in either on sim-only or a lot cheaper if I sign up for a 2 year contract (natch).

I've done the maths and the sums are about the same (sim only for 24 months plus upfront cost of phone vs bill pay for 24 months and cheaper phone), so it'll come down to the quirks of being on sim only vs billpay.

The only thing I can think of is if VF go to pot or change their terms or reception in my area get worse, I can get out with 30 days notice, not something I can do on a contract, I assume. Thing is I'm sure there are other intangibles with 1 vs the other. Like upgrading later on for example - easier on bill pay or sim only? Anything else I'm not considering?

coylemj

Is the phone you're considering relatively old in terms of when it was announced? It's unusual to have the equation roughly equal as you're described it. In terms of the sim-free price, are you sure you're getting the best price - are you only looking at the sim-free price from VF or have you looked at Amazon or other suppliers?

corblimey

No, the handset is pretty new, it would be considered a premium handset, I guess. I have looked at other B&M suppliers, but VF offer the best price for upfront price and in fact, a lot of the other mobile phone companies don't offer this particular handset upfront at all. For the price I'm paying, I prefer to have someone local to talk to if something goes wrong, otherwise online might definitely be a way to go.

When you say you're surprised, would you expect the sim-free to be cheaper or the bill pay?

DopeTech

corblimey wrote: »

No, the handset is pretty new, it would be considered a premium handset, I guess. I have looked at other B&M suppliers, but VF offer the best price for upfront price and in fact, a lot of the other mobile phone companies don't offer this particular handset upfront at all. For the price I'm paying, I prefer to have someone local to talk to if something goes wrong, otherwise online might definitely be a way to go.

When you say you're surprised, would you expect the sim-free to be cheaper or the bill pay?

What is the handset? Have you looked at getting it sim free?

ED E

4 out of 5 times it's better to buy the handset yourself. Bill pay is often a symptom of bad budgeting.

Use Amazon.de:
-better care and warranty
-faster updates (3 months often)
-freedom to move networks whenever
-no bloatware
-cheaper(usually)
-dual sim options

Also the tariffs can be way better. If you're a three customer who's data centric PAYG is E20/Mo while E55/Mo on bill pay.

run_Forrest_run

or check Argos regularly, they can be quite competitive for sim free handsets. I recently got the Moto G(4) for €179.99.

MarkR

I've checked it out quite a few times. Work out the total spend over two years and see what you come up with. Factor in the monthly charges, upfront costs, etc for what services you need. Also, bear in mind the massive benefit of being able to move networks easily with no contract, and an unlocked phone.

Trojan

It depends on your usage and the cost of the device. I saved around €290 on an iPhone 7 by buying it on contract as opposed to outright, as well as getting an interest free loan of €640. I was fine with buying here and paying VAT as it's a business expense, otherwise I might have considered getting it from abroad.

I think the most important thing to do is look at your current monthly spend (mine was ~€33) and then look at what it'll be on contract (I'm guessing €45 since I'll overspend some months). Multiple that by 48 to get the 2 year difference (for me, €288). That's the premium I'm paying for the privilege of the subsidised handset. Add that to the handset downpayment (€350 for me) and that's how much the handset is costing you above staying where you are right now and doing nothing.

corblimey

Tks all. I am considering moving back to PAYG in the new year, I'm getting nowhere near my allowances even on the low sim-only deal. That would obviously be a deal breaker for signing up to bill pay. There doesn't seem to be any disadvantages to buying upfront if you can afford it. I did check out amazon.de, ED E. The price is similar enough, maybe a 10% saving which isn't worth the peace of mind of having an Irish guarantee in a real shop, but ymmv.

But the one thing I can't figure out is my upgrade options (I'll ask instore, but I'd prefer unbiased opinions).
Would it be basically the exact same situation in 2 years time: pay upfront or sign up for bill pay. Or would 2 years of customer loyalty on bill pay make a difference to my options at that time?

MarkR

Take the example of the S7.

Seems to be about 500 on amazon, with shipping, you're probably talking 530?

So 530 + (24 x 20) = 1010 for two years (assuming a 20 top up monthly, which seems common)

On a bill, you could be paying
200 upfront, plus (40 * 24) = 1160. Not bad considering you're not forking out too much up front
or
0 upfront, plus (80 * 24) = 1920. Free phone, but massive bills over two years, so it does make sense to work out what is best for you.

Try that kill biller app on the phone to see what plans may suit.

lawred2

I pay €5 a month for 10G data

I used to pay €50

I will never ever again buy a phone from an operator

touts

Another way to look at it is do you need to spend €700+ on a phone? Are an IPhone or a Samsung S7 better phones than the Moto G4 or VF Smart Ultra 6? Yes they probably are. But €400-€500 better? I don't think so. I came off contract 3 years ago and now go Sim Only. My monthly outlay is down by about €30 a month (old contract with a "free phone" was €55 now it's €25) . That's a €360 saving a year or €1080 over the three years. In that time I've had two phones both cost less than €200 so that makes the saving €600+. Both phones did/do everything I want (good camera, listening to music, lots of memory, no performance issues etc). I just think the gap between the mid-market phones and the "premium" phones is mainly just the marketing department.

corblimey

You could be right, touts. I moved from iPhone in June to a cheapish Android phone, mostly because I wasn't sure about Android (having only experienced it in tablet form before). The iPhone was my first smartphone (in 2012) and that was work-supplied so was never the latest or greatest - the one I gave up in June was a 5. So I've never had a premium phone and I'm definitely not a power user that needs one, but equally I can afford top of the range, so why not, if only to prove to myself that I don't need the latest and greatest.