Have you chosen a new smartphone to suit your needs? You might be wondering now how to pay for it. Is it better to buy a phone outright or get a contract to spread the cost?
In this blog, we’re breaking down the pros and cons of each option so you can decide which is the best way for you to get your phone.
What does it mean to buy a mobile phone on contract?
Buying a mobile phone on contract means spreading the cost of your phone over several months – you usually have the option of 12, 24, or 36 months.
A contract is a loan you take out with the mobile phone provider and then pay them back each month until the device is paid off.
Your payments might be one monthly payment to cover your device loan repayments as well as your calls, texts, and data. Or, some providers will split these into two separate payments.
Advantages and disadvantages of phone contracts
There are pros and cons to paying for your mobile phone this way.
Some of the advantages include:
- Manageable monthly payments.
- Perks like annual upgrades (for example, trading in your phone after 12 months for the latest model).
The disadvantages are:
- The total cost can be higher due to interest and plan costs.
- You’re locked into a long-term loan agreement.
Contracts are great if you’re keen to get the latest phone without a large upfront expense. However, they can be less flexible.
What does it mean to buy a phone outright?
When you buy your mobile phone handset outright, you pay the full cost upfront and you own the device.
Advantages and disadvantages of buying your phone outright
The benefits of buying the phone outright are:
- Your phone is SIM free, which means you can choose any provider – this gives you the freedom to choose any SIM only plan from any provider, which can be cheaper.
- No long-term commitment.
- Option to keep your phone for as long as you like.
It’s important to do your research and shop around for the best deal.
The drawbacks of buying outright boil down to:
- Higher upfront cost – generally, it will cost you more to do it this way.
However, this depends on what you want to buy – an Apple iPhone will generally be more expensive to buy outright, whereas a basic Samsung can be a lot more affordable.
Another option is to consider buying a refurbished model rather than a brand new phone to save money while helping the environment.
Refurbished phones are graded based on their condition, (e.g., excellent to fair), inspected, and often come with a 1-year warranty for your peace of mind.
SIM-only plans: a flexible alternative
If you choose the contract option, you can consider a SIM-only deal once your phone is paid off.
Often, this can cost much less per month than full contracts and include the same benefits, like data, calls, and texts.
MakeItEasy4U: Local Smartphone Support in Clitheroe
If you’re still unsure about whether to choose a contract or buy your new phone outright, MakeItEasy4U can help.
From choosing the perfect model to setting it up, transferring data, and learning how to use the different features, I’ll make the process stress-free.
Contact us today for personalised support in your home in the Clitheroe area.