Cell phones - purchase vs monthly payments

[Rob_Roy]

Is it better to pay off cell phones vs monthly payments? I dont plan on leaving att anytime soon. Generally don’t upgrade when eligible. As we know iPhones dont last forever. What are your thoughts?

As others have mentioned, often the phone promos come with a more expensive plan, which you are locked into for the financing duration. Much like a car, if you trade every year or two you are always eating the steepest part of the depreciation curve. You can buy open box or refurbished iphones a generation or two behind the latest models for a nice discount. When you buy an unlocked phone outright, that gives you a lot of options for service plans.

 

[CKN]

As others have mentioned, often the phone promos come with a more expensive plan, which you are locked into for the financing duration. Much like a car, if you trade every year or two you are always eating the steepest part of the depreciation curve. You can buy open box or refurbished iphones a generation or two behind the latest models for a nice discount. When you buy an unlocked phone outright, that gives you a lot of options for service plans.

Yes. But then you are using your own cash vs. monthly credits by the mainstream provider.

 

[bullwinkle]

@alarmguy I pay $10 per month on my T-Mobile plan.

My wife’s 11 is on Tello for $9/month, unlimited talk/text, 2 GB data/month (then 2G data afterwards), but since she’s on Wi-Fi 99% of the time, the 2GB/month is plenty. Sling apparently has a $15/month Boost Mobile promo, unlimited data to 30 GB, IF you have been a Sling customer for 7 months or more. Both T-Mobile MVNOs, assuming the usual things apply (deprioritizarion, etc.).

 

[alarmguy]

You are on a competitive plan to MVNOs. Connect is T-Mobile service but not a "mainline" T-Mobile plan. Your benefit is, by the looks of it, no deprioritization since Connect is a branch of T-Mobile.

@Marrk is on a one gigabyte data plan so it’s useless for anybody who uses a smart phone that isn’t on a Wi-Fi network.

US mobile is far cheaper for anybody that uses a smart phone on a cell phone network.
My wife and I pay $16.50 per line includes all taxes and fees for a total of $33 a month for two lines
That includes 12 GB data unlimited text talk.
You can choose any network, T-Mobile, AT&T, or Verizon with the above plan

That above T-Mobile plan would cost you $50 plus tax and fees direct from T-Mobile

 

[CKN]

@Marrk is on a one gigabyte data plan so it’s useless for anybody who uses a smart phone that isn’t on a Wi-Fi network.

US mobile is far cheaper for anybody that uses a smart phone on a cell phone network.
My wife and I pay $16.50 per line includes all taxes and fees for a total of $33 a month for two lines
That includes 12 GB data unlimited text talk.
You can choose any network, T-Mobile, AT&T, or Verizon with the above plan

That above T-Mobile plan would cost you $50 plus tax and fees direct from T-Mobile

The wife and I are on the T- Mobile Magenta Go 5 G Plus 55. It includes all the standard stuff plus Netflick and Apple TV for $3.00 a month. Its $103.00 a month- all in. We traveled extensively out of the U .S. The service works really well for us in this regards. That's why we are on this plan.

 

[alarmguy]

The wife and I are on the T- Mobile Magenta Go 5 G Plus 55. It includes all the standard stuff plus Netflick and Apple TV for $3.00 a month. Its $103.00 a month- all in. We traveled extensively out of the U .S. The service works really well for us in this regards. That's why we are on this plan.

We were on it for two years but bailed after the two year period, (Called Magenta 55+ at the time $70)

 

[PandaBear]

Typically if they want me to do monthly plan they have to give me a good deal, like a total of $200 or $300 off over 2 years. If they are just no interest plan I would probably go buy a used phone or like new one off the internet that's cheaper.

I just finished my 24 month on an Apple Watch, got it $200 cheaper that way, and is starting an iPhone 15 plan that's 2 years of payment and $315 cheaper than retail.

 

[dubber09]

Only once did I go on a phone payment back when I got my first 'smartphone' which was Samsung S2, ever since I buy my phones and use them on average 4 years. Currently running Motorola Stylus '23 model, bought in US as it had better specs vs Canadian version and iirc was cheaper too, paid about C$400 to my door.

 

[JHZR2]

I’ve generally upgraded mine on a two year cycle. The payment plans have generally been 24 months 0% for the final price, which was the Moro less the “on us” value. So it seems like a win win.

 

[Lubener]

Is it better to pay off cell phones vs monthly payments? I dont plan on leaving att anytime soon. Generally don’t upgrade when eligible. As we know iPhones dont last forever. What are your thoughts?

Get a flip phone for $25.

 

[PandaBear]

As others have mentioned, often the phone promos come with a more expensive plan, which you are locked into for the financing duration. Much like a car, if you trade every year or two you are always eating the steepest part of the depreciation curve. You can buy open box or refurbished iphones a generation or two behind the latest models for a nice discount. When you buy an unlocked phone outright, that gives you a lot of options for service plans.

Or, they need to upgrade their network and you are one of the last guy with an outdated phone they want gone.

Those targeted promotion are pretty sweet and I have gotten a few dump phones back then, and recently like $200-300 off if I "trade in".

 

[Vil_Riker]

I just overhauled my computing equipment. Part of that was getting an iPhone 17 Pro. The last iPhone was 6 years old and had a hard time using it abroad - it didn't support 5G and some countries no longer have 4G LTE networks.

I bought it outright from the Apple website, unlocked and to be used with any network. Yes, it's eye watering to pay that much money in one go but I can switch between carriers freely.

 

[PandaBear]

some countries no longer have 4G LTE networks.

Which country is that?

 

[andrew_j]

I just buy outright. I just have not borrowed in about 5 years for anything.

I like simple and no commitment to a particular provider which payments lock you into .

 

[Vil_Riker]

Which country is that?

Large cities in Armenia and Cyprus.

 

[SstrongBadD]

im on visible by verizon. 25 bucks a month, works perfectly fine. With an i phone 12 pro

 

[greenjp]

Same (though I have the + plan at $30/month) works well, the data is truly unlimited (no throttling to 4G or something after some limit) and you get 10 days overseas per year for free. BYO phone which currently is an iPhone SE3. I am definitely in the camp of buying "like new" unlocked "refurbs" from Amazon or wherever.

jeff

 

[Jay73]

I buy my phones outright. Currently iPhone 16 ProMax 1TB on Total Wireless
Unlimited Talk, Text, Data with Disney+ $30/Month 5 Year Price Lock
I used to upgrade phone every year but not much changes so I do every 2 years now.

 

[Patman]

I tend to keep my iPhones for about 4 or 5 years so in the fall of 2024 when I finally needed to replace my iPhone XR I got a brand new iPhone 16 from my service provider. They were selling it for $40 a month (no interest) for 2 years and then a $400 buyout at the end. I will buy it out and keep it at least 2 more years after that.

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!

 

[andrew_j]

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.