Did you buy your iPhone outright, or pay monthly?

[m4v3r1ck]

Always outright! Keeping my BKR*) as modest as possible.

Here in The Netherlands they changed the regulation for paying for a phone that's included in the monthly payment. The whole amount for the phone will be registered at *) BKR - national credit registration organization - and that may become a PITA when for example you're applying for a mortgage on a house!

Cheers

 

[Newtons Apple]

Why not? You're not paying interest and you don't shell out all of the money at once. Financially if you're not upgrading yearly it would be better to

I do not think that the consumer credit company that Apple uses is a good thing on your credit report. It is certainty not a plus on your report.

 

[The Game 161]

Was planning on buying my next iPhone in full but if it's over a grand that might make me think twice

 

[democracyrules]

Monthly via carrier. Got a promo - $650 trade-in credit for iPhone 6 (spread out for 24 months) when you buy iPhone 7.

Buying on installment through a carrier usually has some direct or indirect costs attached to it, such as additional device fee, locked device which costing your freedom if you ever want to change carrier, etc.

 

[blcfla]

when Verizon stuck it to unlimited plan holders and forced them to buy their own devices I went that route. I think it was back around the iPhone 5 that I bought one outright, every year since I've bought the new iPhone within a few months after release and sold my current phone. I think it costs me about $150-200 every 12-16 months.

 

[democracyrules]

Off course I have to stay with them for 24 months since the day it came out in order to receive it for free.
.

The above comment is a sample of indirect cost: freedom cost, cannot change a carrier if something goes wrong with the carrier or you can terminate the commitment and pays a great amounts of penalty cost.
[doublepost=1497702498][/doublepost]

I hate the whole concept of leasing anything. Especially a cellphone.
It reminds me of car leases

Agree with the above comment. Leasing means never owning the leased device even though you already spent a great deal of money just to have it on your hand.
[doublepost=1497702570][/doublepost]

I hate the idea of financing a phone.
Nowadays you see people financing everything. They finance tv's, washers, furniture, they finance wifi routers from their internet provider and many other things like that.

Agree with the comment above.
[doublepost=1497702762][/doublepost]

Bought it for $945, let me tell you, I didn't like it that much at that moment! Hahaha

Understand with the comment above. Not feeling good on short term, but feeling much better on long term: freedom and free for any costs that usually come with leasing or installment plan. You have and own fully your device after spending a great deal of money compare to others who spend some great deals of money and never own the device.
[doublepost=1497702853][/doublepost]

I'm like you, I don't finance anything. I charge most everything and pay the card in full every month. I like getting that cash rewards every year which ends up paying for Christmas gifts.

I own my unlocked iPhone outright after I purchased it. Leasing any phone still ties you to the carrier for a year or more. And if you want to switch carriers you still have to pay off any balance before you can switch.

Above comment is excellent!! Agree completely!!
[doublepost=1497702932][/doublepost]

Same here.
I Pay off cards in full each month to avoid interest and I get point rewards to use on amazon.
I can't see myself making 2-3 year payments on a cellphone.
Even when I buy a car I pay it off within 1-2 years instead of making the minimum payments for 5 years.
[doublepost=1497666229][/doublepost]

I just find it a pain and unnecessary to drag it that long.
And I rather sell it online myself than leave $100-200 on the table for someone else to profit off me.
It's not much of a hassle taking 2-3 pictures and posting a quick ad on swappa.
And then drop it off at the post office next day.

Love the above comments!! Excellent and recommended to all thread visitors and readers!!
[doublepost=1497703006][/doublepost]

I pay full price. I can't see taking out a loan to buy a phone. Makes more sense to buy what you can afford.

Another good comment above.

 

[Closingracer]

The above comment is a sample of indirect cost: freedom cost, cannot change a carrier if something goes wrong with the carrier or you can terminate the commitment and pays a great amounts of penalty cost.
[doublepost=1497702498][/doublepost]
Agree with the above comment. Leasing means never owning the leased device even though you already spent a great deal of money just to have it on your hand.
[doublepost=1497702570][/doublepost]
Agree with the comment above.
[doublepost=1497702762][/doublepost]
Understand with the comment above. Not feeling good on short term, but feeling much better on long term: freedom and free for any costs that usually come with leasing or installment plan. You have and own fully your device after spending a great deal of money compare to others who spend some great deals of money and never own the device.
[doublepost=1497702853][/doublepost]
Above comment is excellent!! Agree completely!!
[doublepost=1497702932][/doublepost]
Love the above comments!! Excellent and recommended to all thread visitors and readers!!
[doublepost=1497703006][/doublepost]
Another good comment above.

Your point? If he isn't leaving the carrier who cares.


Also people act like you're paying interest. It's a 18-24 month loan. It means less out of pocket expenses up front and you'll own the phone after that and you can always pay more or pay it off early. Why spend $650 now when I can spend $650 in 2 years. Means more money for me for other things like bills. As far as leasing goes I am paying $13 a month for my iPhone 7 and I just give it back and get another iPhone. For me that convenience is worth it. One thing to don't want to do it but don't knock it.

 

[rui no onna]

Buying on installment through a carrier usually has some direct or indirect costs attached to it, such as additional device fee, locked device which costing your freedom if you ever want to change carrier, etc.

I was cognizant of those facts and got the device fully aware of the trade-offs.

1. I've been with my carrier for 10+ years. I didn't see myself switching carriers within the next 12 months (around break-even point for the 2-year old iPhone 6 trade-in value). Both T-Mobile and Sprint have poor signal at my location. Chances are I still would've stayed with my carrier for the next 24 months so figured might as well exchange my iPhone 6 for the iPhone 7 for the tax.
2. I was already paying the line access fee regardless of whether I upgrade or not.
3. There is no early termination fee if you cancel the account, you just pay off the remaining installments on the new iPhone which isn't much different than paying for the phone outright, you just have a lower bill after x months worth of credit. Cancellation before 24 months does effectively mean lower than $650 trade-in value for the iPhone 6.
4. Carriers will unlock your new device when you pay the device off.

 

[Closingracer]

I was cognizant of those facts and got the device fully aware of the trade-offs.

1. I've been with my carrier for 10+ years. I didn't see myself switching carriers within the next 12 months (around break-even point for the 2-year old iPhone 6 trade-in value). Both T-Mobile and Sprint have poor signal at my location. Chances are I still would've stayed with my carrier for the next 24 months so figured might as well exchange my iPhone 6 for the iPhone 7 for the tax.
2. I was already paying the line access fee regardless of whether I upgrade or not.
3. There is no early termination fee if you cancel the account, you just pay off the remaining installments on the new iPhone which isn't much different than paying for the phone outright, you just have a lower bill after x months worth of credit. Cancellation before 24 months does effectively mean lower than $650 trade-in value for the iPhone 6.
4. Carriers will unlock your new device when you pay the device off.

Exactly. You're still paying the same amount in a financed phone vs outright in the end. The only time you lose is if you don't lay your bill.

 

[Closingracer]

I do not think that the consumer credit company that Apple uses is a good thing on your credit report. It is certainty not a plus on your report.

There is no loan or anything. At worse you get a hard credit check and knocks your score down 2 points.

 

[sunapple]

I usually buy my phones unlocked from Apple or second hand. I have a prepaid sim-only that costs next to nothing and like to buy and sell my iPhone whenever I want.

 

[dukebound85]

Outright - Swappa. Will never finance.

Exactly. If you aren't able to buy outright, you can't afford it.

 

[epca12]

Monthly on contract but I'm looking to buy the 8 outright or through the upgrade program

 

[Newtons Apple]

There is no loan or anything. At worse you get a hard credit check and knocks your score down 2 points.

If you buy from Apple and use Citizens credit, there is no loan?

And consumer credit accounts are not seen as a positive on your credit.

 

[Closingracer]

If you buy from Apple and use Citizens credit, there is no loan?

And consumer credit accounts are not seen as a positive on your credit.

I don't use apples program but if it's like carriers it doesn't even show up. Otherwise jt would just look like a line of credit and will help you actually assuming you're not late and pay it off.


Also a loan would also help your credit as well.

 

[Closingracer]

Exactly. If you aren't able to buy outright, you can't afford it.

How? Your logic is flawed in so many ways.

Outright for a 64gb iPhone 7 $649 plus sales tax on day one


Financed for 24 months you're spreading out the $649 over 24 months with no interest.


Both total cost is $649 plus sales tax.
If you're like my mother who doesn't care about the newest why take out $650 day one? You'll pay the same amount and keep part if it in your account. End result is you own the phone at the end.

 

[dukebound85]

How? Your logic is flawed in so many ways.

Outright for a 64gb iPhone 7 $649 plus sales tax on day one


Financed for 24 months you're spreading out the $649 over 24 months with no interest.


Both total cost is $649 plus sales tax.
If you're like my mother who doesn't care about the newest why take out $650 day one? You'll pay the same amount and keep part if it in your account. End result is you own the phone at the end.

Believe what you want but most people who finance tend to think about if they can afford the payment and not the balance. It's one thing to have the cash upfront and decide to spread it out over 24 months vs not have the cash and thinking You can afford a phone if you can afford the payment

 

[PaladinGuy]

I pay full price. I can't see taking out a loan to buy a phone. Makes more sense to buy what you can afford.

I understand and agree with you, to a point. However, there's a strong financial argument that can be made for not tying up so much of your money at one time (even if you can afford it). It comes down to liquidity and other factors. I'd rather have that same money doing something else for me (rather it's making interest or returns or just being used towards something else). This only holds true if it's zero interest or very low interest rates.

 

[rugmankc]

Zero interest, why not?

 

[OriginalAppleGuy]

I love the opinions here. When the carriers stopped subsidizing smartphones is when I went with the Apple IUP. If you are financially savvy, you'll understand that 0% interest is far better then paying all up front. And given my current financial situation, I can laughingly say if I needed to buy an iPhone outright, I wouldn't feel it financially.

I don't like having payments on things either. My preference is to pay 100% at time of purchase. But when you invest and have other holdings, it's important to take in to consideration the potential of removing that "capital" from the portfolio. Is this potential greater than the interest saved? If so, then payments make the most sense from a financial growth perspective.

Specifically in the case of the Apple IUP, if you upgrade each year, the amount of your "trade" is greater than what you could sell it for to buy a new one. Strangely enough, that "benefit" decreases the longer you hold on to the phone.

 

[rui no onna]

I understand and agree with you, to a point. However, there's a strong financial argument that can be made for not tying up so much of your money at one time (even if you can afford it). It comes down to liquidity and other factors. I'd rather have that same money doing something else for me (rather it's making interest or returns or just being used towards something else). This only holds true if it's zero interest or very low interest rates.

True. Kinda regret paying cash for my car. Gonna take a while to build up that savings again. It was a nice feeling when I paid in cash but to be honest, I'd have greater peace of mind if I had kept the money in the bank.

So yeah, 0% interest and I'd opt for liquidity. Besides, I'm not even paying for my iPhone 7 aside from tax and iPhone 6 trade-in. I just need to continue paying for service which I was already doing to begin with.

 

[Closingracer]

Believe what you want but most people who finance tend to think about if they can afford the payment and not the balance. It's one thing to have the cash upfront and decide to spread it out over 24 months vs not have the cash and thinking You can afford a phone if you can afford the payment

That's their problem not mine but the cost is still the same.

 

[dukebound85]

That's their problem not mine but the cost is still the same.

Would you agree that you should have the ability to pay for the phone up front regardless if you pay up front or spread it out with a 0% loan?

 

[Closingracer]

Would you agree that you should have the ability to pay for the phone up front regardless if you pay up front or spread it out with a 0% loan?

I never said I didn't. You should but IMHO why pay upfront when there is no financial difference.

For me leasing the phone is actually cheaper. I have a 18 month lease at $13 a month. I paid $100 for the 128gb upfront.


I will pay around $230 for he lease payments and $330 total. I win in that arrangement.

 

[kazmac]

Outright.