iPhone XS Question about monthly installments vs. paying up front

Discussion in 'iPhone' started by dvader123, Oct 17, 2018.

  1. dvader123 macrumors regular

    Joined:
    Jun 27, 2010
    #1
    Sorry everyone for asking this, but I honestly could not get a straight answer looking online nor do the people at the verizon store and bestbuy appear to give me a straight answer.

    I am just wondering if paying up front actually costs less than paying the monthly installments. Or are the monthly installments just taking the price of the iphone and dividing the payments into 24 months? Are there added fees or hidden costs that. although small for each monthly payment, will add up over time?

    I'm trying to figure out which method of buying is the cheaper when all is said and done.

    TIA.
     
  2. nburwell macrumors 601

    nburwell

    Joined:
    May 6, 2008
    Location:
    DE
    #2
    Monthly payments are basically just spreading out the cost of the phone over $24 months. There are no fees or hidden cost associated with spreading out the payments. Plus, spreading out the payments over 24 months helps if you don't have $1,000 upfront.
     
  3. dvader123 thread starter macrumors regular

    Joined:
    Jun 27, 2010
    #3
    Ok. Thank you. I ask because I am waiting till a Black Friday sale to get the new iphone xs, but it requires me to go on those installment plans. I didn't know if I would be paying more in the longrun for this that it wipes out any savings I get from the Black Friday deal.

    You're saying that it's the same. I wonder why I have to do the installment plan at all if I can pay it up front. They're getting their money either way.
     
  4. Renho macrumors 68000

    Renho

    Joined:
    Sep 15, 2014
    Location:
    SR, CA
    #4
    No interest financing. Pay the same cost, you can pay a down payment and get your monthly payments down.
     
  5. dvader123 thread starter macrumors regular

    Joined:
    Jun 27, 2010
    #5
    So if I put in a downpayment for an iphone xs for $976 leaving only $24 left. Are they seriously going to just make me pay an extra $1 every month for 24 months?

    All this just to get on an installment plan for Black Friday discounts. If I could give them the entire payment, they're still getting their money. Why am I forced to go with an installment plan? I don't get it because it's not like the stores are making more money that way.
     
  6. MacDawg macrumors Core

    MacDawg

    Joined:
    Mar 20, 2004
    Location:
    "Between the Hedges"
    #6
    Why not just take the installment plan and then pay it off?
     
  7. dvader123 thread starter macrumors regular

    Joined:
    Jun 27, 2010
    #7
    Well, I think I might do that now. I thought you ended up paying more because of added fees and hidden costs that accumulate over time. In addition, it looks like to get the benefit of the Black Friday iphone deals (i.e. ~$250 gift cards and credits), you're required to get the phone on an installment plan.

    My question is that I heard you can, if you wish, put in a downpayment. If I put in a $976 downpayment, leaving on $24 left to pay for the phone, will I just have to pay an extra $1 each month for 24 mo? Will stores allow me to do that? Just curious because if I prefer paying the phone upfront, but are still required to get an installment plan, then that might be something someone would do. (Not saying I'd do this. Just curious if it's possible.)
     
  8. Renho macrumors 68000

    Renho

    Joined:
    Sep 15, 2014
    Location:
    SR, CA
    #8
    oh black Friday, i dont know about that. Its up to the store that you do it with. Could be the only deal you can get is on a payment plan. Bestbuy did offer phones $100 more than retail one year. stores can do whatever they want, so read the fine print....
     
  9. Squeak825 macrumors 6502

    Joined:
    Sep 5, 2007
    #9
    Depends on how they give you the credits. If it is all upfront you should be fine. But if they split it over monthly payments, you have to have a payment active to get the credit.
     
  10. predation macrumors 65816

    Joined:
    Apr 3, 2013
  11. gurase macrumors 6502

    Joined:
    Oct 12, 2015
    #11
    I think Target, Best Buy, etc. get kickbacks from the carriers for activating people on installment plans.
     
  12. rachelsgoldens macrumors member

    Joined:
    Sep 8, 2016
    #12
    They give you monthly bill credits so you will be keeping service with them over that period of time, or if you pay it off early, you lose the monthly credits.
     
  13. now i see it macrumors 68040

    Joined:
    Jan 2, 2002
    #13
    If you need that dumb installment plan to get a deal later, just buy the phone like anyone and pay the first payment normally ($24 or whatever it is) then a month or two later or after that sale is over, just pay off the phone in full. They won't penalize you for that. It's an interest free loan.

    It's futile to try to figure out why corporations create these money shuffling schemes. Just read the fine print and you'll be fine.
     

Share This Page

12 October 17, 2018