Does buying an iPhone with a 2 year contract save the most money in the long run?

Discussion in 'Buying Tips and Advice' started by Reminisce32, Sep 10, 2014.

  1. Reminisce32 macrumors regular

    Reminisce32

    Joined:
    Mar 13, 2009
    #1
    Does buying an iPhone with a 2 year contract save the most money in the long run? Or would I save money by paying full price up front as an AT&T customer?

    I'm currently holding onto a grandfathered unlimited data plan, so I plan on keeping my plan and staying with AT&T, but wanted to know if AT&T provided any way for me to save money monthly if I pay retail for the phone?

    Thanks.
     
  2. NukeIT macrumors regular

    Joined:
    Mar 20, 2013
  3. mad3inch1na macrumors 6502a

    Joined:
    Oct 21, 2013
    #3
    It depends on how much you are paying now. As a general rule of thumb, if a non-contract plan costs $20/month less than your current plan, then it is worth while (about $450 over 2 years). Subsidized plans cost more in general, but plans at AT&T vary. Unsubsidized plans are best especially if you keep your phone for more than 2 years, because you save more money each month.

    For example, if you are paying $200 for 4 phones on contract, and an equivalent subsidized plan costs $120 or less a month unsubsidized, then it makes sense to purchase your phones outright.

    T-mobile currently has arguably the best pricing for families of 4-6 people. This assumes you are ok with the coverage though. They are currently offering 2.5GB of LTE with tethering, international, and free music streaming for $100 a month total for 4 people.

    Edit: I misread your post. They will not let you keep your grandfathered plan and pay for your phone outright.
     
  4. theMaccer macrumors 6502a

    theMaccer

    Joined:
    Oct 7, 2006
    Location:
    SoCal
    #4
    hard to say, but carriers are moving away from 2 year contract, so it must have been costing them.
     

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