Other Buy outright or on a monthly plan??

bigpoppamac31

macrumors 68020
Original poster
Aug 16, 2007
2,284
330
Canada
Okay so I was talking with a rep from Fido (I'm in Canada) and if I keep my existing plan I'd be paying $1499 +tax for the 256GB iPhone XS. That's the up front cost. It's not spread out over the two year plan period. If I were to "upgrade" to a new plan I'd be paying $25-30 more per month for the same features I have now. My monthly bill would go from $80/month to at least $105 plus the $1499 cost of the phone. If any Canadians on here know of better deals out there let me know. I still can wait for the XR but I'd be in the same scenario. We get really hosed up here in Canada for cellular plans. Also the iPhone's "visual voicemail" is an add-on feature. It's not automatic if voicemail is listed on the plan features. At least it's not with Fido. They're still doing the ancient style of voicemail where you have to dial a number to get your messages. Then go through the whole "press 1 for new messages'', "press 2 to delete messages", etc. That's so 90's. How is that still a feature??? In any event is it better to buy outright (which I really can't afford) or do a monthly plan?
 

Vermifuge

macrumors 68000
Mar 7, 2009
1,992
1,492
I have to keep legacy hardware around for business needs. But I can understand the appeal of a monthly plan. In a world of Uber & Lift it seems the concept of ownership is becoming antiquated. Some people lease a car because they enjoy having a new car. Myself, I don't mind a higher payment and retaining something of value after.

Really comes to the individual.
 

bigpoppamac31

macrumors 68020
Original poster
Aug 16, 2007
2,284
330
Canada
I have to keep legacy hardware around for business needs. But I can understand the appeal of a monthly plan. In a world of Uber & Lift it seems the concept of ownership is becoming antiquated. Some people lease a car because they enjoy having a new car. Myself, I don't mind a higher payment and retaining something of value after.

Really comes to the individual.
So you'd rather buy outright than on a monthly plan? I think my issue is more about the monthly price of the plan. For the fun of it I went on the Verizon wireless website to look at their plans. For $80 I can get 14GB of data per month. I pay $80 and only get 6GB of data per month (and that was a special deal at the time). Also it seems on Verizon I can spread the cost of the phone over the two years of the plan instead of paying upfront in one shot. We get really hosed in Canada on cellular plans.
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It’s free money. Take it.
Um what?? I don't get it.
 

Dld23

macrumors member
Sep 14, 2018
66
15
Ohio
So you'd rather buy outright than on a monthly plan? I think my issue is more about the monthly price of the plan. For the fun of it I went on the Verizon wireless website to look at their plans. For $80 I can get 14GB of data per month. I pay $80 and only get 6GB of data per month (and that was a special deal at the time). Also it seems on Verizon I can spread the cost of the phone over the two years of the plan instead of paying upfront in one shot. We get really hosed in Canada on cellular plans.
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Um what?? I don't get it.
Jesus!!! I pay 80 and get unlimited. You are getting ripped off :(
 

Frostys

macrumors newbie
Sep 24, 2018
29
15
There isn’t really any reason not to pay monthly. There’s no penalty.
 

vertical smile

macrumors 601
Sep 23, 2014
4,624
5,719
I don't understand the second choice.

Are you saying that it is 1499 spread over a period of time?


If I am understanding the two choices, go for the first one. I would just pay the upfront cost and keep my current plan.

If you don't want to lose use all that cash, then just charge it to a credit card. The interest charge would be less for a 1499 purchase than what the increase to your monthly plan would be to upgrade.


If anything apply for a credit card with a 0% intro rate and pay for it that way. Do banks have deals like that in Canada?
 

bigpoppamac31

macrumors 68020
Original poster
Aug 16, 2007
2,284
330
Canada
Jesus!!! I pay 80 and get unlimited. You are getting ripped off :(
Yes indeed Canadians are getting royally ripped off. Quite frustrating. Even the cost of the phone itself is insane. The high end iPhone XS Max with 512GB is $1,999.
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I don't understand the second choice.

Are you saying that it is 1499 spread over a period of time?


If I am understanding the two choices, go for the first one. I would just pay the upfront cost and keep my current plan.

If you don't want to lose use all that cash, then just charge it to a credit card. The interest charge would be less for a 1499 purchase than what the increase to your monthly plan would be to upgrade.


If anything apply for a credit card with a 0% intro rate and pay for it that way. Do banks have deals like that in Canada?
No the $1499 is upfront. My current plan is all I need so I don't care to pay any more. I can't get a normal credit card due to bad credit. I only have a prepaid credit card.
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No, monthly...0% loan. Free money.
No such thing as "free". Everything is paid for someway and somehow.
 

Vermifuge

macrumors 68000
Mar 7, 2009
1,992
1,492
I don't understand the second choice.

Are you saying that it is 1499 spread over a period of time?


If I am understanding the two choices, go for the first one. I would just pay the upfront cost and keep my current plan.

If you don't want to lose use all that cash, then just charge it to a credit card. The interest charge would be less for a 1499 purchase than what the increase to your monthly plan would be to upgrade.


If anything apply for a credit card with a 0% intro rate and pay for it that way. Do banks have deals like that in Canada?
The full cost of the phone is divided over two years. If you only keep the phone for one year and tun it in for a new model you basically only had to pay 1/2 the cost of the phone for the privilege of using it for year. This cycle repeats each year allowing you to always have the latest hardware.
 

jtrue28

macrumors 6502a
Apr 10, 2015
778
354
Lexington, KY
Yes indeed Canadians are getting royally ripped off. Quite frustrating. Even the cost of the phone itself is insane. The high end iPhone XS Max with 512GB is $1,999.
[doublepost=1538349239][/doublepost]

No the $1499 is upfront. My current plan is all I need so I don't care to pay any more. I can't get a normal credit card due to bad credit. I only have a prepaid credit card.
[doublepost=1538349300][/doublepost]

No such thing as "free". Everything is paid for someway and somehow.
The same price, whether paid all up front, or divided by 24...there’s no difference. Except 24 months of lower payments and no interest.
 

vertical smile

macrumors 601
Sep 23, 2014
4,624
5,719
No the $1499 is upfront. My current plan is all I need so I don't care to pay any more. I can't get a normal credit card due to bad credit. I only have a prepaid credit card.
I am still confused about the options.
Let me see if I understand:

Option 1: Keep your current plan, and pay $1,499 cash upfront for a iPhone

Option 2: Upgrade to a new plan (which consists the same features that you already have) by paying an extra $25-$30 a month, and still pay $1,499 cash upfront for a iPhone

Maybe I am missing something, but why would anyone choose option 2?
 

mac.cali

macrumors 65816
Mar 16, 2012
1,374
301
This is the first year I’m doing iUP. I’ve always paid in full and resold once the new iPhone comes out. I looked at all my sales versus what I paid and I average 55-60% value after all fees. With the iUP it’s a 50% value after one year. To me it wasn’t worth selling each year with the possibility of being scammed by the buyer. The iUP seems like a great choice for those who update yearly. It does suck to have a monthly payment, but I’m over it now. Plus I don’t have to treat this like a newborn baby. I just need to return it working and cracked free. Simple enough with AC+. Hopefully I’m still optimistic after the first year of doing this.
 

bigpoppamac31

macrumors 68020
Original poster
Aug 16, 2007
2,284
330
Canada
The same price, whether paid all up front, or divided by 24...there’s no difference. Except 24 months of lower payments and no interest.
I'd rather have lower monthly payments but there is no interest that I'm aware of.

I am still confused about the options.
Let me see if I understand:

Option 1: Keep your current plan, and pay $1,499 cash upfront for a iPhone

Option 2: Upgrade to a new plan (which consists the same features that you already have) by paying an extra $25-$30 a month, and still pay $1,499 cash upfront for a iPhone

Maybe I am missing something, but why would anyone choose option 2?
A new plan would essentially have the same features as what I have now. Perhaps not exactly the same. I just don't need any more features than what I have now. But yes a new plan would cost more than my current one. My plan is a "legacy plan". At the time of sign up back in 2009 my 6GB/month of data was an "add on" feature for $30 a month. I was paying over $100 per month until I got Fido to lower the price. Check the Fido site here for the plan prices. https://www.fido.ca/consumer/mobile

The iPhone XR 128GB is $1099 + tax (13%) so it's a bit cheaper.
 

vertical smile

macrumors 601
Sep 23, 2014
4,624
5,719
The full cost of the phone is divided over two years.
I asked the OP if the $1,499 was spread out of monthly payments and this was the response:
I don't understand the second choice.

Are you saying that it is 1499 spread over a period of time?
No the $1499 is upfront.
The same price, whether paid all up front, or divided by 24...there’s no difference. Except 24 months of lower payments and no interest.
Even if the cost was spread out, the OP stated that to change his plan, it would be an increase of $25-$30 a month on top of the cost of the phone.

While there wouldn't be any interest when spreading out the payment, there would be a significant increase just to change his plan, the OP said that this increase did not cover the cost of the iPhone.

But yes a new plan would cost more than my current one.
If you don't like/want the feature of the new plan of option 2, why would you even consider it?

But again, the options that you stated are not very clear, some people think you are saying the $1,499 cost for option 2 would be spread out over 24 months, is it? or is it up front?
 

PTLove

macrumors 6502
Sep 12, 2014
382
565
The classic monthly plan as offered by US carriers are essentially 0% loans over a 2 year period for the MSRP of the phone. Considering inflation, that’s a good deal. It’s technically a better deal than buying outright because of inflation.

Some people don’t do well with Monthly payments however. They tend to overextend themselves. If that’s a fear, just buy outright and be free of mind.
 

bigpoppamac31

macrumors 68020
Original poster
Aug 16, 2007
2,284
330
Canada
I asked the OP if the $1,499 was spread out of monthly payments and this was the response:




Even if the cost was spread out, the OP stated that to change his plan, it would be an increase of $25-$30 a month on top of the cost of the phone.

While there wouldn't be any interest when spreading out the payment, there would be a significant increase just to change his plan, the OP said that this increase did not cover the cost of the iPhone.

If you don't like/want the feature of the new plan of option 2, why would you even consider it?

But again, the options that you stated are not very clear, some people think you are saying the $1,499 cost for option 2 would be spread out over 24 months, is it? or is it up front?
Whether I pay for the phone upfront or over two years the cost is the same. What I would pay monthly on a new plan is higher cause the new plans are more expensive.
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The classic monthly plan as offered by US carriers are essentially 0% loans over a 2 year period for the MSRP of the phone. Considering inflation, that’s a good deal. It’s technically a better deal than buying outright because of inflation.

Some people don’t do well with Monthly payments however. They tend to overextend themselves. If that’s a fear, just buy outright and be free of mind.
Bare in mind I'm in Canada so the stipulations on plans up here are potentially different. For example overage charges. Up here it's $10/100mb whereas (at least with Verizon) it's $15/1GB.
 

bigpoppamac31

macrumors 68020
Original poster
Aug 16, 2007
2,284
330
Canada
Yes I know but u break it down in 24 months versus paying $1499 up front. You can use that towards something else etc.
No. I pay the full phone cost up front regardless of whether I keep my current plan or "upgrade" to a new one. I talked to a Fido rep earlier.
 

Darmok N Jalad

macrumors 68030
Sep 26, 2017
2,563
10,040
Tanagra (not really)
I have to keep legacy hardware around for business needs. But I can understand the appeal of a monthly plan. In a world of Uber & Lift it seems the concept of ownership is becoming antiquated. Some people lease a car because they enjoy having a new car. Myself, I don't mind a higher payment and retaining something of value after.

Really comes to the individual.
I always try to own. Financing often gives the illusion that you have more money than you do, but those commitments can add up and rob you of you flexibility. For example, say you lost your job or just had a big emergency pop up. If your phone is already paid for outright (purchased when you had the money to buy it), you don’t have to worry about whatever issues may arise from defaulting on a monthly charge—plus it’s an amount of money that gets tied up that you could otherwise have used elsewhere. These 0% deals count on people going past the 0% term, and then the rate skyrockets or a penalty is incurred. These “low monthly plans” on everything are popular, but considering that 40%+ of Americans (not sure if Canada is different) can’t cover a $400 emergency without borrowing, I think it creates the wrong financial mindset. Credit is by no means bad, but it must be used wisely.

Just my opinion, but that’s what OP asked for! :p
 
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bigpoppamac31

macrumors 68020
Original poster
Aug 16, 2007
2,284
330
Canada
I always try to own. Financing often gives the illusion that you have more money than you do, but those commitments can add up and rob you of you flexibility. For example, say you lost your job or just had a big emergency pop up. If your phone is already paid for outright (purchased when you had the money to buy it), you don’t have to worry about whatever issues may arise from defaulting on a monthly charge—plus it’s an amount of money that gets tied up that you could otherwise have used elsewhere. These 0% deals count on people going past the 0% term, and then the rate skyrockets or a penalty is incurred. These “low monthly plans” on everything are popular, but considering that 40%+ of Americans (not sure if Canada is different) can’t cover a $400 emergency without borrowing, I think it creates the wrong financial mindset. Credit is by no means bad, but it must be used wisely.

Just my opinion, but that’s what OP asked for! :p
Yes I do prefer to own but I like many others can't afford to pay outright for a $1000+ phone. Even $700-800 is too much for me. That's why I sign the two year deal when upgrading a phone. Either way no matter which phone I get from my carrier I have to pay the phone price upfront. For example the iPhone 8 is advertised a $0 on a two year contract. I still have to pay the cost of the phone upfront. I tried by going through the upgrade online.
 
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