Is it worth selling an iPhone 6 to pay off your contract to get a 6s?

[Bryan Bowler]

I always shake my head when I hear people say "I sold my iPhone and made enough to pay it off and get into a new one without having to pay a down payment." However, what some people fail to grasp is they just committed themselves to another set of 24 monthly payments. It is the same trap/business model that has dominated the car buying industry for years. Show a customer that their monthly payments do not change and they'll gladly continue to pay.

Now before I get blasted, let me preface this with another statement. Many of you on here are smart, you do the math, and you know darn well what it is you're getting into. However, for each one of you, there are 10 others out there that just don't get it and they are making financial decisions that are bad for them and their particular situation. Yes, it is your choice to decide where to spend your play money, but with this type of sales tactic, a lot of people will spend more then they should. It works well and that is why it has been used in the automotive industry for decades.

In today's market the true out-of-pocket cost for upgrading to a new iPhone every year is approximately $250-$400 a year.

 

[Blujelly]

Yeah, I think it could work out better on a year to year basis until the last year you wish to not upgrade and stop the program.

Interesting though for sure, hopefully comes to the UK post-christmas period

Completely agree with you! On a year on year basis its cheaper and better value (going by some rough figures I've made up). On a 2 year basis its expensive, but let's face if you have the option to what I assume upgrade every year hassle free with no high upfront costs, who wouldn't?

 

[maxsix]

What features does the 6s have that you really want? Is it worth selling a year old phone for?

This is a very important consideration that is often overlooked. Far too many people get emotionally wrapped up in "must have newest" model. Yes Apple builds wonderful phones but why spend so much to update? The smart money is spent on useable upgrades that you need.

For me 4K and improved camera is a complete waste of money. The existing camera already exceeds my needs, resolution does as well. However I could use the ram because I do use resource intense business apps. But I'm not buying just for that, I can easily wait for next upgrade cycle.

 

[sunking101]

Are you with O2?

As that wouldn't work with EE, with EE that calculate the remaining months then -33% deductions, the final cost is then for you to be out of your contract and you have the iPhone.

You then depending in plan and spec'd iPhone would then have to pay around £150+ for the iPhone upfront cost let alone a fairly high monthly cost for the iPhone an plan, there is then the hassle of selling the iPhone, to try and minimize the cost of the high payouts

Yeah, O2 refresh. You have a separate airtime and device plan contract. So 9 months into a 24 month contact on a £699 64GB 6+ I owed £375 on my device plan. I paid that off and then stumped up an additional £49.99 to get the 64GB 6S+. So £424.99 to upgrade, and I sold my 6+ for £500 cash with no advertising/Paypal fees. My monthly payment stays the same and I have an extra £75 in my pocket.

 

[Blujelly]

Yeah, O2 refresh. You have a separate airtime and device plan contract. So 9 months into a 24 month contact on a £699 64GB 6+ I owed £375 on my device plan. I paid that off and then stumped up an additional £49.99 to get the 64GB 6S+. So £424.99 to upgrade, and I sold my 6+ for £500 cash with no advertising/Paypal fees. My monthly payment stays the same and I have an extra £75 in my pocket.

Thought so I could probable just JUST about make it work with EE if I was on contract, but its just to much hassle, O2 refresh is easier as the spit the bill with your plan and the device etc.

EE doesn't unfortunately.

That being said I do think EE provide some of the best SIM only plans compared to others.

 

[sunking101]

I would assume anyone upgrading from a 6 to a 6s (very similar phones) has a lot of disposable income.

I hear what you're saying. Upgrading for me actually left me with an extra £75 in my pocket but then I am adding an extra 9 months to my contract. As I will always have a mobile phone and be paying a monthly contract it doesn't really make much difference to me.

As for upgrading mid-contract, it's something I have only done once before. I don't make a habit of it and this time around it's because I really didn't like the 6+. It just didn't perform well enough and it frustrated me on a daily basis. I just couldn't stomach another 15 months with it so pretty much felt forced into the upgrade.

 

[617aircav]

This is a very important consideration that is often overlooked. Far too many people get emotionally wrapped up in "must have newest" model. Yes Apple builds wonderful phones but why spend so much to update? The smart money is spent on useable upgrades that you need.

For me 4K and improved camera is a complete waste of money. The existing camera already exceeds my needs, resolution does as well. However I could use the ram because I do use resource intense business apps. But I'm not buying just for that, I can easily wait for next upgrade cycle.

Exactly my thoughts. If you have the money good. I know people who are looking for ways to finance their next iphone, despite having the current model already. Like you said the camera is great and most people don't even have 4k televisions. Apples phone financing is going to be a mad cash cow for them. Everyone is forced to get apple care plus even though most won't ever use it. The phone already comes with one year of regular apple care built into the price.

 

[Blujelly]

Exactly my thoughts. If you have the money good. I know people who are looking for ways to finance their next iphone, despite having the current model already. Like you said the camera is great and most people don't even have 4k televisions. Apples phone financing is going to be a mad cash cow for them. Everyone is forced to get apple care plus even though most won't ever use it. The phone already comes with one year of regular apple care built into the price.

I see where you coming from but for the UK if it was £45p/m for an iPhone (current modal) 64Gb going by a yearly basis as I would upgrade every year is a lot cheaper then out right. Guessing that could be the price for them

 

[617aircav]

I see where you coming from but for the UK if it was £45p/m for an iPhone (current modal) 64Gb going by a yearly basis as I would upgrade every year is a lot cheaper then out right. Guessing that could be the price for them

Does that include the monthly plan cost?

 

[sunking101]

Does that include the monthly plan cost?

My O2 Refresh plan on a 64GB 6+/6S+ (it didn't change) is £48.99 a month, split roughly down the middle between airtime and device plan. I don't get a fantastic tariff for that price but it suits me:

5GB data
Unlimited minutes
Unlimited SMS.

 

[Blujelly]

Does that include the monthly plan cost?

No as you're just paying for an iPhone so you'd need then need SIM only plan.

iPhone cost (example's here) £45 x 12 = £540
SIM Only plan (going on my SIM Plan ) - £18 x 12 = £216

Total cost for the year £756 that's inc Apple care plus.

Now before anyone say's it, yes I know its 24 months, but if I was on the iPhone program I can't imagine me not upgrading for free. So I would be running this on a year by year cost.

This is also assuming that when you upgrade there aren't any costs etc.

 

[meikdunj]

By sim free and a monthly sim only plan. Much more cost effective. I never buy my phone with a contract.

 

[617aircav]

My O2 Refresh plan on a 64GB 6+/6S+ (it didn't change) is £48.99 a month, split roughly down the middle between airtime and device plan. I don't get a fantastic tariff for that price but it suits me:

5GB data
Unlimited minutes
Unlimited SMS.

That's under $80. Verizon will charge you $75 with just 2gb plus you have to pay another $850 for the phone itself.

 

[617aircav]

By sim free and a monthly sim only plan. Much more cost effective. I never buy my phone with a contract.

I do the same. My monthly ranges from $50 down to $6 depending on the service I'm using that month.

 

[Evad3]

A 32GB 6S is $36.58 a month on the upgrade plan (24 months). After 12 months (~$440) you give back your phone for a new one and restart the 24 months. So in real terms you're paying for just over half the cost of the phone for a years use. And this repeats every year you want to upgrade. Until you decide you want out of the program then you will be paying ~$880 (or whatver the bill for your final 24 months is).

It's good for Apple because in real terms they get more $$ but it's useful if people want to upgrade every year and pay in installments without the hassle of trying to sell your deviced privately.

Once we get UK prices we can start looking at iPhone + SIM only Vs. Contracts Vs. Apple upgrade plan.

Gives us more options atleast!

At the moment a SIM only + iPhone is most beneficial. With my SIM only contract + 64GB iPhone 6S it will total £37 a month (for 24 months)

 

[lordofthereef]

Worth is subjective. How much do you owe, how much will you get from selling your current phone to offset the price of the 6s.

I can see myself spending about 932 bucks (or in that neighborhood) for a 64GB iPhone 6s with applecare and taxes. Selling my IP6+, I can get say 400, and I have some allowances from my company for another 400. That's 800 bucks, so I'd only be out of pocket 132 dollars - yet with that said I'm not finding it worth the money or extra effort at the moment. Maybe I'll change my mind once the phone hits the street but to me its not worth it.

Lol damn. I'd say you're probably in better shape than most people upgrading from last yesr's nodel.

 

[maflynn]

Lol damn. I'd say you're probably in better shape than most people upgrading from last yesr's nodel.

No doubt and if I move over to T-Mo, I'll get the 6s but on its own, I'm having an issue with spending what I did on the 6 plus last year and dropping more for the latest model 10 months later.

 

[Blujelly]

Once we get UK prices we can start looking at iPhone + SIM only Vs. Contracts Vs. Apple upgrade plan.

Gives us more options atleast!

At the moment a SIM only + iPhone is most beneficial. With my SIM only contract + 64GB iPhone 6S it will total £37 a month (for 24 months)

I could be wrong in everything I have said about my guestimate's, but I'll stick to them for now and hope haha. Knowing our UK luck a 16Gb iPhone 6s would cost £70 p/m

 

[Evad3]

I could be wrong in everything I have said about my guestimate's, but I'll stick to them for now and hope haha. Knowing our UK luck a 16Gb iPhone 6s would cost £70 p/m

Aha yeah, it's confusing. You're essentially paying for 12 months, giving the phone back and starting over the 24 months again with a new phone. I think. Think being the opperative words here!

Yeah, 128GB may be a shade under £100/m if you know an inside man at EE

 

[Blujelly]

Aha yeah, it's confusing. You're essentially paying for 12 months, giving the phone back and starting over the 24 months again with a new phone. I think. Think being the opperative words here!

Yeah, 128GB may be a shade under £100/m if you know an inside man at EE

Id say that's spot you effective just keep refreshing the 24 month contract