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ConnieMR's profile

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Sun, Nov 23, 2014 9:34 PM

Phone Upgrade - Monthly Payments?

I upgraded my phone a while ago from an iPhone 3 to a 5. I paid $199. Did I have to make monthly payments?

 

Reason I'm asking is my husband upgraded to an iPhone 6. The price is over $600 with monthly payments. I think that's too much money.

GeekBoy

Master

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4.1K Messages

8 y ago


@ConnieMR wrote:

I upgraded my phone a while ago from an iPhone 3 to a 5. I paid $199. Did I have to make monthly payments?

 

Reason I'm asking is my husband upgraded to an iPhone 6. The price is over $600 with monthly payments. I think that's too much money.


There are 2 levels of service.  You have a contract subsidized phone.  You pay less money for the phone, but depending upon your cell plan, you pay more for your service.  If you want to quit before your 2 year contract is over, you have to pay an ETF.

 

Your husband is using a NEXT purchase agreement to purchase his phone over time with no financing fees, and no service contract.  Once again, dependign upon your service plan, he may be saving up to $25/month by paying full price for his phone, and he has not ETF if he choses to quit because he has no service contract.  Of course, he has to pay off the outstading balance on his phone if he wants to quit before it is paid off.

 

Now, if he's getting the $25/month discount, over 24 months he's paying $600 less for his service by paying $649 for his phone, where you paid $199 for your phone (plus the $40 activation fee) and you would be paying the higher service fee too, so over the 24 month contract period, you would be paying about $200 more than your husband (if you are on that service plan). 

 

Paying $650 (or more) for a smartphone is too much for some people, that's why so many people choose to go with cheaper phones like Android, or Windows Phone...

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