Are 18/24 Month contracts cheaper?

foxtrot_mike

I have noted one or two comments on here that 18/24 Month contracts are cheaper than 12 month contracts, im not sure that I agree.

I was looking at Tesco and Vodafone on the iphone 4 16GB as they both do 12 month contracts along with sim free deals such as GiffGaff, ill pick Vodafone as they have all three contract ranges for fairer comparison (although Tesco is cheaper still)

12 Months
£35 per month
300 Minutes, Unlimited Texts, 500MB Data
£299 phone cost
total cost including phone over 12 months = £719

18 Months
£35 per month
300 Minutes, Unlimited Texts, 500MB Data
£199 phone cost
total cost including phone over 18 months = £829

24 Months
£30 per month
300 Minutes, Unlimited Texts, 500MB Data
£199 phone cost
total cost including phone over 18 months = £919

GiffGaff sim only
£10 per month
250 Mins, unlim Texts and Data

After the 12 months i decide to switch to giffgaff sim only for another 6 months (keeping my iphone) that would amount to £779 (cheaper that the 18 month deal)

Or even keep it going for 12 months amounting to £839 (cheaper that the 24 month deal)

Ok you will need to unlock your phone and it also depends on whether you want the hassle after 12 months to change again.

Of course if i chose to upgrade after 12 months with the same plan and phone for arguments sake that would be £1438 costing more but id have a new phone if i needed one but that would probably be extravigant.

It also depends if you can accept the higher initial phone cost.

gjchester

foxtrot_mike wrote: »

I have noted one or two comments on here that 18/24 Month contracts are cheaper than 12 month contracts, im not sure that I agree.

If a Tesco/Giffgaff deal works for you it's still would not be the cheapest, and as you say you need to switch in between.

A lot of this is working out the true monthly cost, adding in phone costs to get a true per month cost, which tends to be missed sometimes.

Another option is to buy the phone Sim Free from Apple at £510 then just use GiffGaff @ £10 a month to make the 12 month cost £630 a year, or £760 for the two years.

Most people don't want the hassle or as you say the up front cost. Plus there the chance charges change in years time but that could be up or down, or allowances change, GiffGaff can change a goody bag at any time, and whislt it will probably be better it may be worse. Who knows.

It also depends if you are the sort of person who likes the latest phone and changes a lot.

foxtrot_mike

Quite right

I omitted the Tesco plan which is
12 Months
£25.00 Per Month
250 Minutes 5000 Texts 1GB Data
£342.00 Phone Cost
Total cost including phone over 12 months = £642

Which is cheaper still than the Vodafone option

I also worked out Tesco / GiffGaff Sim free with an Iphone purchased direct from Apple @ £510 at £10 per month this would work out at £630 over the 12 months

You may as well do the Tesco option and get the benefit of cheaper initial outlay and the benefits of a short contract.

Last time I was conned with a 24 month contract and a phone that was awful and sold it within a couple of months and brought a factory phone, therefore I don't want a long contract for this reason and certainly 18 months is my limit, but will consider 12 months this time for safety.

gjchester

foxtrot_mike wrote: »

Last time I was conned with a 24 month contract and a phone that was awful and sold it within a couple of months and brought a factory phone, therefore I don't want a long contract for this reason and certainly 18 months is my limit, but will consider 12 months this time for safety.

Conned or didn't fully research the phone before you got it? Many people get seduced by the latest shiny gadget without thinking how it will work for them, I've done it, got a phone on a good deal when really I should have got the phone I wanted not the one that was offered. Didn't hate the phone but never really liked it.

If your that concerned about contract length go PAYG or a monthly contract.

As I said in another post most people in the UK want the latest gadget for free on a contract, the UK is unusual in the phone market most other countries don't use that model, you have to pay for the phone as well.


Most smart phones are £400 to £500 to buy sim free, the network needs to make enough money to cover that initial outlay and the service costs to give you the phone "free". If someone wants the latest gadget it needs to be pay for, and that means either an up front payment, higher monthly costs or longer contracts.

foxtrot_mike

gjchester wrote: »

Conned or didn't fully research the phone before you got it? Many people get seduced by the latest shiny gadget without thinking how it will work for them, I've done it, got a phone on a good deal when really I should have got the phone I wanted not the one that was offered. Didn't hate the phone but never really liked it.

More so conned but as a shy person I had a problem saying no, I normally buy phones on line then there is no pressure but I'm normally good at research.

As a matter of choice and convenience I don't want PAYG and 12 months would suit me but I'm also happy with a balance of paying upfront and spreading the cost out over a short contract.