Are Phone Contracts worth it?

[Kobe]

So my dad's pretty stubborn and just needs the newest Iphone each time. I personally am not a big fan of them, but I've always just bought phones outright so I don't have to sign as I travel a fair bit.

He isn't interested in the Iphone 8 Plus but the X but I'm sure it will be on a similar basis. (Since the Iphone 8 was nearly the same as the 8+)

I decided to create an excel sheet with the differences between buying it on no contract vs 2 year contract, not exactly sure if I did it right?

Here is the prices per month if you buy the new Iphone 8 Plus



Here is what it would cost me If I wanted to purchase the Iphone 8 Plus with no contract and change phones (For 2 years) I'm actually paying $50 but added taxes...

$52 a month X 24 = $ 1,248.. If I paid for the full phone out right = $2,307.. for $96 a month if I decided it by 24 months.



Since he has 14 months left on his contract this is what it would look like if he purchased the phone without a contract, now this doesn't look great But it saves him for when he wants to upgrade again in 14 months. (He says he won't I know he will) He will be able to have my $96 a month rate afterwards if he buys a new phone.



My dad currently has 14 months left on the Iphone 7 Plus and is stubborn to renew and get the Iphone X.




His currently paying $85/month for 2GB of data.

It seems the amount you put down on a phone makes a difference in your plan per month.

For Example if you pay $559 for the Iphone 8 plus you can pay $95/month for the same plan that is $105 if you pay $359. (I think?)


I'm currently paying $50/month for my 4GB of data while he pays $85, which he was not allowed to be changed to since he was on a contract for a difference of $420 a year..

I mean buying for a two year contract vs getting the $65/month advertised rate on the website is huge over 2 years



Thoughts? Why are people buying contracts? Am I missing something, I realize it looks appealing to get a phone for cheaper, but is it actually worth it?

I'm assuming contracts should only be purchased when you don't have the money to buy a phone outright?

[Thaco]

contracts always have been nothing more than a loan for a phone, they made sense before it changed to 2 year contracts because there was no discount for BYOP, but now that most places give you 10% off+ for BYOP, the contract is just a loan so people don't have to drop $1k for a phone on day 1.

[Mitsu3000gt]

I haven't been on a contract for almost a decade now.

The other thing the carriers bank on is when you take your $95/mo plan to barely afford that fancy new phone, when the phone is paid off, your $40-of-actual-value plan stays at $95 unless you remember to change it.

Most people just don't want to spend $1000/yr (less the value of the previous device, call it $500) even though that works out to a very reasonable per day or per month rate for what ends up being a lot of people's most relied upon possession.

These days, they don't even try to hide anything. Take the plan plus the phone discount divided by months and add them together. Needing a new plan right now is a nightmare, everything is bad.

[Kobe]

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I haven't been on a contract for almost a decade now.

The other thing the carriers bank on is when you take your $95/mo plan to barely afford that fancy new phone, when the phone is paid off, your $40-of-actual-value plan stays at $95 unless you remember to change it.

Most people just don't want to spend $1000/yr (less the value of the previous device, call it $500) even though that works out to a very reasonable per day or per month rate for what ends up being a lot of people's most relied upon possession.

These days, they don't even try to hide anything. Take the plan plus the phone discount divided by months and add them together. Needing a new plan right now is a nightmare, everything is bad.

Yah, it still does seem pretty appealing, I had no idea about the differences in price per month before I did research.

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contracts always have been nothing more than a loan for a phone, they made sense before it changed to 2 year contracts because there was no discount for BYOP, but now that most places give you 10% off+ for BYOP, the contract is just a loan so people don't have to drop $1k for a phone on day 1.

Oh didn't even know there is a discount for BYOP but ya. It's insane that being on a contract vs paying outright is a $55/month difference.. Just insanity...

[tha_bandit]

Quick and simple comparison from Telus, iphone 8 plus, new line:
2 year at 95/mo: 2280 + 360 (due now) = 2640
2 year at 85/mo: 2040 + 560 (due now) = 2600
byod at 70/mo (2 yr): 1680 + (1059, apple) = 2739
above all on the same plan (300min/3GB)

shop around a bit, for example, koodo, same plan for 65/mo = 1560 + 1059 (apple) = 2619

this is just daily rates, no grandfathered plans, deals, etc. plus as mentioned above, they still get the monthly rate after the 2 yr agreement is over.

for example, fido has a promo for 4gb/45mo right now, 45mo: 1080+1059 = 2139, plus you get to keep that monthly rate for the next phone purchase

[schocker]

Generally no since plan prices have gone up and up and up since I got onto my BYOP plan. I always do a double check though in excel first. At times it can be fairly close if you don't want to pay upfront, but lately, it isn't even close.

[Thaco]

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Oh didn't even know there is a discount for BYOP but ya. It's insane that being on a contract vs paying outright is a $55/month difference.. Just insanity...

i think the biggest difference in the plans is pre 2 year legislation and post 2 year legislation.

plans skyrocketed with that legeslation, and the only way to sign a contract for subsidised phone, is to switch to a current plan, no grandfathering if you want a subsidized device.

[benyl]

So I have a $45 plan with unlimted text and minutes with 4GB data.

Roger's just released their iPhone X pricing. $799 for the 256GB on a 2 year plan that is $95 (3GB and 300 minutes).

$50 * 24 = $1,200 + $799 = $2K + GST

You can buy one outright with applecare+ for $1,867 including GST.

Seems like a no brainer to me.

[max_boost]

Not gonna verify the math but I'm sure it's not marth haha

But when comparing, I thought Rogers was being sneaky because if you go with the term contract, you pay more for the plan vs no contract so Rogers makes it back anyway and it's not a deal. I dunno if you can get the best plan either if you are on contract.

My credit card has a mobile device insurance aspect that covers damage/theft/loss etc. so that's kinda like my Apple care? lol

[Darkane]

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So I have a $45 plan with unlimted text and minutes with 4GB data.

Roger's just released their iPhone X pricing. $799 for the 256GB on a 2 year plan that is $95 (3GB and 300 minutes).

$50 * 24 = $1,200 + $799 = $2K + GST

You can buy one outright with applecare+ for $1,867 including GST.

Seems like a no brainer to me.

Is that a grandfathered plan? I’m awaiting Telus’ plan. Hopefully I can carry over my $65/mth.

[HiTempguy1]

Nowadays, phone contracts aren't worth it. As stated, they are simply loans.

Now sometimes contracts do allow you to get good deals, rarely do outright phone prices go on sale. I haven't been on contract in years, but I also am running google phones/opo so until the pixel they weren't readily available at the telecoms for contract.

[firebane]

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i think the biggest difference in the plans is pre 2 year legislation and post 2 year legislation.

plans skyrocketed with that legeslation, and the only way to sign a contract for subsidised phone, is to switch to a current plan, no grandfathering if you want a subsidized device.

Not true. I have talked my way through a phone upgrade from a S4 to a S7 and kept my grandfathered plan. The plan is an old 6gb data plan for $75 a month and no current plan comes close.

Now if I choose to upgrade again you are right and I may lose it, but if that is the case I will simply never upgrade again and run an outdated phone because I do not have the means to BYOD.

[ExtraSlow]

Have run various versions of the contracts and the BYOD plans with telus. Best deal of all is buying a cheaper device (either used or just lower spec) and doing BYOD.

You could get a brand new lower spec phone for $250 every year, save $45/mo and come out way ahead.

That's not what most of us do though. We use $800 or higher phones and kid ourselves that we'll upgrade every two years.

[benyl]

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Is that a grandfathered plan? I’m awaiting Telus’ plan. Hopefully I can carry over my $65/mth.

It is a Fido plan for black Friday last year. Started at $40 / month. They raised the price this month to $45. Still come out ahead.

I pay for 3 phone lines.

I buy a new one every year, wife gets it the next year and then my mom gets it for the 3rd year. My mom doesn't care and neither does the wife. I save $120 month with these plans and everyone is happy. Everyone gets a "new" phone in Sept (well, Nov this year).

[speedog]

For many I would suspect a contract is the only affordable way that they can get a cellular phone as many do not have the means or the self control to save up a wad of cash for when they want /need a phone.

I've always done contracts but I've always got the zero dollar phone because they meet my requirements and that has allowed me to keep my grandfathered plan as well. My current S4, however, needs a new screen and is within a couple months of the end of it's contract so it will be another phone, just not sure what yet. Gonna have to talk to Rogers, 12 years of loyalty has to be worth something.

[Mitsu3000gt]

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12 years of loyalty has to be worth something.

It's a reasonable assumption...but they don't care.

[speedog]

I am thinking an unlocked basic smartphone would probably be my best fit and can probably be easily had for under $200, no?

[Mitsu3000gt]

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I am thinking an unlocked basic smartphone would probably be my best fit and can probably be easily had for under $200, no?

I think all phones by law have to be unlocked by December of this year, so that's a win for everyone.

You should be able to get any of last year's phones for $0-$200. Galaxy S7 is $0, iPhone 7 is $50 on some contracts right now.

[Kobe]

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I think all phones by law have to be unlocked by December of this year, so that's a win for everyone.

You should be able to get any of last year's phones for $0-$200. Galaxy S7 is $0, iPhone 7 is $50 on some contracts right now.

Link? Was unaware of this.. Is it Canada only?

[ExtraSlow]

BLU sells some interesting cheaper phones.
here's one for $199 from amazon. http://a.co/aiklwqo. I haven't compared the various BLU models in a long time, but I'm sure the specs are fine for basic use.