I seem to be in the extreme minority of people who pay for their phones outright, and then get on a prepaid plan. I've done this since the iPhone 5 initially released. With all the current talk about available carrier "deals" on new phones, I'm still amazed no one ever seems to consider the fact that these carriers charge you double the cost (or more) for postpaid service compared to prepaid service. Some of these major service providers have unlimited prepaid services themselves, and it's normally half the price. So, with all the talk about trade in deals, why does it seem like no one considers the actual cost of owning a phone, AND paying for the service over the course of a year, or two. At the very least, a customer can save themselves $480 a year just by going prepaid over postpaid with a savings of $40 a month. You may save even more depending on how much data you need. You also never have to worry about device payoffs, early upgrades, or the feeling of being stuck with a carrier. That savings will pay for a brand new phone every two years, without even trading in your old phone.
Look at Visible, which is owned by Verizon. You can pay them $40 a month for unlimited data ($25 when you join a party of 4). However, Verizon postpaid services start at $70 a line, before the cost of your phone. They make it seem like they're financing your phone at 0%, when they are actually charging you almost double the price for service simply because they're financing your phone. Whether you want to believe it or not, you are paying more now than you did back when you were actually on a 2 year contract. You are still in a contract when you lease a phone. It's all semantics. 15 years ago, you could get out of your contract by paying a termination fee, which was the same as you just paying off the phone they gave you. It's no different than today. It's actually getting worse because some carriers are trying to lock you in for 2.5-3 years now. They don't actually care about the phone they're giving you. They care about finding a way to lock you into paying them double the cost of service. That's the strategy.
Personally, I'm on WiFi a lot. I've actually had Spectrum Mobile's "By The Gig" plan before, and had no issues with it. Most months my phone bill was $14. Yes, $14! There are many options out there for everyone, and they're all cheaper than postpaid service.
I know some people are probably not in the position to fork over $700-1,200 for a new phone, but IMO that means you simply can't afford to own that phone. It's no different than you trying to get a loan at a bank, and them charging you a 44% annual interest rate when you consider the increased cost of monthly postpaid service. Would you accept that? If you can't pay for the phone outright, then finance an unlocked phone on the Apple Card, and get on a prepaid service.
Why does it seem like no one else talks about this? The total cost outlay over 1-2 years is what customers should be considering. Not just how much a carrier says they are charging you to finance your phone. It seems like most customers could benefit from switching to prepaid service.
Look at Visible, which is owned by Verizon. You can pay them $40 a month for unlimited data ($25 when you join a party of 4). However, Verizon postpaid services start at $70 a line, before the cost of your phone. They make it seem like they're financing your phone at 0%, when they are actually charging you almost double the price for service simply because they're financing your phone. Whether you want to believe it or not, you are paying more now than you did back when you were actually on a 2 year contract. You are still in a contract when you lease a phone. It's all semantics. 15 years ago, you could get out of your contract by paying a termination fee, which was the same as you just paying off the phone they gave you. It's no different than today. It's actually getting worse because some carriers are trying to lock you in for 2.5-3 years now. They don't actually care about the phone they're giving you. They care about finding a way to lock you into paying them double the cost of service. That's the strategy.
Personally, I'm on WiFi a lot. I've actually had Spectrum Mobile's "By The Gig" plan before, and had no issues with it. Most months my phone bill was $14. Yes, $14! There are many options out there for everyone, and they're all cheaper than postpaid service.
I know some people are probably not in the position to fork over $700-1,200 for a new phone, but IMO that means you simply can't afford to own that phone. It's no different than you trying to get a loan at a bank, and them charging you a 44% annual interest rate when you consider the increased cost of monthly postpaid service. Would you accept that? If you can't pay for the phone outright, then finance an unlocked phone on the Apple Card, and get on a prepaid service.
Why does it seem like no one else talks about this? The total cost outlay over 1-2 years is what customers should be considering. Not just how much a carrier says they are charging you to finance your phone. It seems like most customers could benefit from switching to prepaid service.
