I don't understand how that will work, so after 11 months you give the, the phone back? Or you keep it and get a new one as well?
Generally the way these things work is that you can give the device back (and forget the remaining payments on that device) and get a new one and start new payments on it. Or you can keep the device, pay off what remains on it, and get a new one with payments again (for for full price if you want).
I just looked at the UK version of that out of curiosity and was very impressed until I realised the carrier plan wasn't included. I would be paying in excess of £50p/m instead of £33. You do get to upgrade every year though so I guess that explains the vastly inflated pricing.
I think you give the phone back as a form of trade in. It is after all a rental program where if you upgrade each year you are effectively paying for the privilege of borrowing the phone.
Well, not quite. You own the equipment, you just have the option to trade it in in place of the remaining payments associated with its price, or you can keep it and just pay off the remaining balance of the (0%) loan/financing.
Yeah that's what I meant by upgrading each year. If you keep the phone for 2 years you own it once it's paid off.
Or you could pay off the balance at any time. But even while you are paying off the cost you already own the device, you just have a loan out that you are making payments on.
That's true, but I don't see the advantage of paying the balance off on this program because you can do that on any normal contract anyway.
Well, you can pay it off and get a new phone at any point, and then do what you want with the one that you have (like sell it). With a contract you can't "pay it off" (short of canceling your line/account and paying the early termination fee) and thus can only upgrade with contract pricing or financing just when the contract is up.
That's true, although my contract doesn't have an early termination fee, in fact they give you a 25% discount if you are in the final year of the contract, but yes that includes paying for the tariff side of things. It's still expensive rather than spreading the cost so I've never done it.
Yes indeed.
