Poll: Do You Prefer To Buy A Phone Outright… Or Subsidised On Contract?

Poll: Do You Prefer To Buy A Phone Outright… Or Subsidised On Contract?

One of the key benefits of signing up to a phone contract is having your handset subsidised (and getting more generous data allowances). But if you can afford the upfront cost, buying your phone outright can provide flexibility and save you money over time. Which do you prefer?

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  • Although I would LIKE to upgrade my phone every 6 months I think it would be a bit self indulgent to do as such, for my personal situation. so every 22 months a new phone works for me.

  • Galaxy s3 4g was $63/month locked in for 24 months on Virgin
    Instead I bought one outright for $590 (grey import) and will sell used s2 for approx $200, and went on the same plan at Virgin but for $39/month, and not locked in

    • So you pay 60c a month more, but you’re not locked in? Interesting.

      I’m a fan of buying the things outright for the very reason of lock-ins… that said, although I’ve never done the trade-in thing I had kind of imagined people getting a slightly better margin than this.

  • It depends.. In my case my company is paying me for mobile usage not for handset so i have chosen Galaxy s3 4g with $66/month 24 months plan on Virgin. I have to pay $7/pm from my pocket. And the best part is if you broke the contract after 6 months you have to pay the handset price only, which i know as per market is almost 30% extra, but still better from Telstra or Optus those charge for data and credits as well when you break the contract.

  • I only upgrade my phone every 2 years or so and my current plan is only $18/mth through TPG. So for me, it just makes more sense to buy the phone outright when I need to upgrade.

  • Was cheaper to get my Lumina 920 on contract vs buying it outright over the course of 24 months. When I factor in the handset costs, I’m only playing about $3 more per month compared to my previous plan.

  • As a high volume caller, I see value in contract plans with a consolidated personal and business phone. Last week i resigned for another 24 months (3 months early) to receive a free iPhone 5.

    • I’m a high volume user too but for me AmaySIM unlimited works out better than any contract I’ve found. I bought my handset outright and went with that.

      • Just switched over from Optus prepaid to Amaysim. So far so good. I bought a new HTC phone outright, because even though I love Optus and have been with them for 5 years, the fact they have removed unlimited social networking from their data doesn’t justify staying with them anymore.

  • Both?
    I tend to buy the most cost effective phone on contract (usually an iPhone coz you can generally sell them at or above RRP) and then sell it and buy a phone I prefer (android).
    The last two times I’ve done this; I’ve got an iPhone on a reasonably priced plan (that is to say – a cheaper plan with more data/call allowance than had I got a different phone), sold the iPhone for $800 (which is more than you’d get selling any other phone you get from a contract), then buy the latest Android handset (most recently my Galaxy Nexus last year). The money you *make* tends to be $200 or more (for example if you got the Nexus 4!) which basically gives you a few months free on your contract.

  • Hmmm, I needed an option for less than 1 phone per year. I answered 1 as that was the smallest.

    I tend to buy a phone and use it till it dies. Currently on an iPhone 4 that I bought 2 weeks after it went on sale and as it still does everything I want I see no reason to get another.

  • I went for more than one phone per year, as I purchase the phones for my children as well. I have some excellent plans from Telstra that are no longer available and phones from Kogan etc are so much cheaper than from the retailers here.
    Each year, the bandwidth available on current plans goes down. As well, if you are on the unlimited plan, with 3 gigs data, the phone is more expensive on the subsidised plan than buying outright.

  • Since I spend a lot of time out of the country, paying for a phone contract for months or years of non-use would be ridiculous. I buy a phone and use it till it dies, like any other appliance.

  • Student / low volume caller, high volume texter.

    Outright is cheaper, and you’re not locked in. However this means you have to pony up a hell of a lot of cash to get the premium phones; eg iPhone.

    At the moment I’m using a Huawei Ideos, and will be purchasing a second-hand iPhone from a mate. Before you laugh, the Huawei has actually been WAY more of a reliable workhorse than I first thought; I first expected it to last 6 months, I’ve now had it about 14 and it’s still going strong.

  • As a student who usually communicates w/ peers through FB, outright via grey market has worked out cheaper for me than going on a contract that offers more than what I needed.

  • I was on Telstra prepaid for 3 years, but just before the iPhone 5 came out they switched there strategy and started offering better deals on contract so now I have an iPhone 5 on contract. Last iPhone was a 3 gs so it’s been a while on other handsets. Must say much happier now on contrac t with iPhone 5. Secondly the reason I switched to telstra prepaid is I moved to a country town where Optus didn’t work. It’s all about the coverage in WA. Optus and Vodafone suck in that regard. The only option is Telstra prepaid or contract. What good is a phone if u can’t call anyone or receive any calls, emails, msgs?

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