Is Cell Phone Leasing Worth It When You Want to Buy a New Phone

Is Cell Phone Leasing Worth It When You Want to Buy a New Phone
Is Cell Phone Leasing Worth It When You Want to Buy a New Phone

Introduction Of Is Cell Phone Leasing Worth It When You Want to Buy a New Phone

Is Cell Phone Leasing Worth It When You Want to Buy a New Phone. It’s something that I’ve had some experience with so I want to talk about this because cell phones are ridiculously expensive now two years ago I bought this phone is the iphone 10 and I bought it outright for a thousand dollars a lot of us don’t have a thousand dollars or a sinking fund set up in place to pay for a cell phone like this so that gets people to think maybe that they should finance or lease their cell phone.

Buy a cell phone in us the first is just buying it

Now there are three different ways to buy a cell phone in us the first is just buying it outright saving up the money and paying for it in full in cash the second way is through financing so you’re typically put on a monthly payment plan for a certain number of months and then at the end of your financing terms you own that phone outright now the third way is through cell phone leasing you are put on a leasing plan in which you pay a monthly fee to use that phone and then at the end of your lease payment terms then.

You have the option to upgrade to the latest and newest cell phone or you have the option to maybe purchase that outright or continue to lease out that phone keeps paying money to use it but you never actually own it so let’s talk about why you would want to lease a cell phone there’s kind of three major reasons why you would want to do this and the first is you don’t have the money upfront to pay for a cell phone in full the site option is you might want to take advantage of a promotion or a discount that’s running currently to make your cell phone cheaper to pay for every single month or maybe there’s a discount to add line so.

It makes it a little bit more worth it the third reason why you might want to upgrade is so that you can upgrade to the latest model if you are an avid iphone user and I know people are just gung-ho about phones I’ve I’ve always had an iphone so I feel you but some people just need the latest and greatest model as soon as it comes out and that’s where leasing comes into play because they can update and upgrade as soon as the latest iphone is out okay let’s talk about the pros of leasing you.

A phone and it gets you into that upgraded model

Typically aren’t charged any interest to lease a phone and it gets you into that upgraded model as soon as it’s out now let’s talk about the cons of leasing sometimes you have to manually go into your cell phone account and get yourself off of that lease plan otherwise if you don’t do anything the cell phone carrier is just going to continue that lease plan even after your terms are up and so you’re going to continue to pay money into that phone which is the other con is that you don’t own that cell phone outright.

So you’re gonna keep paying for something that you don’t own another big con or can be considered a con is that you are locked into a contract with that cell phone carrier because if you break a lease early sometimes you are on the hook to pay off the rest of the balance on that phone so it gets you into a contract with that cell phone carrier so sometimes that can be 18 24 months and then if something happens or you don’t like your carrier anymore and you want to switch it can cost you big time okay so.

Let’s go ahead and hop into my cell phone account and I’m going to show you some of the different options that were presented to me I’m a sprint customer and they just merged with t-mobile so you’re going to see the sprint interface and somehow that’s going to mix into t-mobile I guess but let me show you how these options can kind of get tricky to figure out all right so I’m upgrading this is what it would look like if I was to upgrade my current iphone 10 to something else and you can see like they push these monthly payments.

The iphone 12 they show me the monthly payment

Because that’s what’s big and bold for each of these cell phone options and then in the teeny tiny font they’re gonna put the full price so if I was to upgrade to the iphone 12 they show me the monthly payment and then what would be due today as a down payment and then the full price so if I was to let’s see go to the iphone 12 pro max why not okay so here are my options inside of sprint so I can either do financing lease or pay in full the pay in full is a thousand dollars or eleven hundred dollars the 24-month financing is 41.67 plus.

A hundred dollars due upfront today then they do have an offer available with this which is purchase a qualifying iphone which would be this iphone 12 pro max and then get an iphone 11. that’s contingent upon this 24 monthly bill credits when you add a line so this can be attractive sometimes if you are planning on bringing another family member on board to your cell phone plan which can make it cheaper if you add more lines we’ve done this before and I’ll talk about that in a second but that’s the financing plan in.

YOU CAN ALSO READ

The Basic Costs of Living in San Diego

Which you pay the 41.67 every single month for 24 months and then you’ll own it after it’s paid off then here’s the lease option so the lease option is 18 months and then you’re going to pay 45.45 every single month for 18 months and then you can upgrade to a new phone or pay the purchase option price to own it so you can either do that in one lump sum or add another nine monthly payments so let’s do the math here so that’s 41.67 times 24 plus 99.99 so that’s roughly about the same price right so.

The financing option you get that iphone 11

It’s eleven hundred dollars versus eleven hundred dollars we’re off by a couple of cents and then with the financing option you get that iphone 11 if you add a new line which obviously would cost more money but if you’re bringing on a family member who’s paying for that line then maybe it’s a win-win all right let’s check out the 18-month flex lease option so this is 45.45 times 18 months so you’d pay 818 with the option of upgrading to the latest and greatest. Like It Is Cell Phone Leasing Worth It When You Want to Buy a New Phone.

iphone afterward but you’d still be on the hook to pay for that next latest model of the iphone so you would still be on a monthly payment plan so if you chose to do an additional nine monthly payments at the same price i’m assuming plus the 18. so the lease option would be the most expensive by an extra 127 ish if we were comparing the 1100 amount for pain in full or the 24-month financing so in this example the 18-month flex lease option you would be paying the most amount of money if you decided to own.

That phone outright after your lease terms were up otherwise you’d be upgrading to a new phone and into another monthly payment plan so kyle and I did this about two years ago we added his mom onto our existing cell phone plan because it would be cheaper and she would have the option to upgrade to a smartphone which at that time she did not have a smartphone so we want to make sure she had a smartphone so that we could communicate a lot better so when.

We made that payment every single month for 18 months

We did that kyle wanted to upgrade his phone and to buy it outright was a thousand dollars or we could get on a financing plan in which we would get a 20 discount off of our financing plan with the option to buy it outright at the end of the plan and then add in that new line and so we ended up doing this long story short it was kind of a pain because they didn’t get the details of our terms correct in the beginning and was putting his mom on like a California new line when we wanted to keep her old line anyway we got.

It all sorted out and we made that payment every single month for 18 months and then we had the option to purchase the rest of the phone outright and so the phone that he selected was originally a thousand dollars and we ended up through this discounted plan only paying seven hundred dollars throughout the eighteen-month financing terms and so we ended up saving three hundred dollars also adding a new line and kyle’s mom pays for her service so it ended up working out for us but keep in mind one thing that.

I’ve noticed when I was on sprint is that those monthly payment options were based upon my credit score so I have an idea in inkling that the higher your credit score the more favorable those monthly terms are going to be so if you have poor credit or okay credit chances are those monthly payment amounts for a cell phone financing option or a leasing option could be a lot higher so look into that if this ends up being an option you want to look into. Comment It Is Cell Phone Leasing Worth It When You Want to Buy a New Phone.