Pay for a contract in one go?

willfinlay

Hi,
I am on O2 as a pay and go customer at the moment, but I am tempted with the iPhone5, so I am considering a contract for the first time. The thing I can't find an answer to (and the otherwise helpful person at O2 didn't understand!) was whether I could pay for the contract in one go and therefore make it cheaper.

I do this for my car insurance; I pay less and avoid interest payments by paying it in one lump sum. I am wondering whether I could do this for a mobile contract, but can find no information about this anywhere.

Does anyone know if this is possible?
(I understand it depends on the company/ contract, but because I can't find anything at all I have assumed that it isn't possible. If I know if it poissible in some circumstances then at least I have a starting point)

Thanks,
Dave

grumbler

No, mobile providers don't offer discounts for a lump sum payment.

Mickyk

With your insurance, you are always paying up front the full sum, if you decide to pay monthly, then you are technically getting a loan from the provider, and paying it off on a 12 m basis.

Mobile providers do not do this, as it is a service provided each month, ie on any given month you could go over your allowance or call #'s not included in your allowance

powerful_Rogue

I reckon it will happen one day, but not for some time.

Landline providers are currently offering this service, such as BT and Virgin Media - Just charing you each month for another other then the line rental.

willfinlay

Thank you all for your replies. That's what I suspected.

The reason I suspected it was the same as insurance was that I understood that as part of the contract application/ approval there was a cerdit check. I guess that this is just normal though and not the fact that you're borrowing the money from them.

DUTR

willfinlay wrote: »

Thank you all for your replies. That's what I suspected.

The reason I suspected it was the same as insurance was that I understood that as part of the contract application/ approval there was a cerdit check. I guess that this is just normal though and not the fact that you're borrowing the money from them.

So if you can afford the contract in one payment, then
a) Buy the handset outright and continue with payg or sim only
b) Put the money in a bank account and use the proceeds to pay for the contract.

kilasuit

with o2 yu can pay any amount online so you could technically take contract out and then instead of paying via DD pay via card for the total contract amount

mattyprice4004

kilasuit wrote: »

with o2 yu can pay any amount online so you could technically take contract out and then instead of paying via DD pay via card for the total contract amount

Better chucking the cash in an ISA though, and withdrawing when needed.

DUTR

mattyprice4004 wrote: »

Better chucking the cash in an ISA though, and withdrawing when needed.

Probably get a £1/month interest.

Buzby

Purchase your iPhone outright. Then get a PAYG nano SIM (from 3UK at te moment) and load it with £30 credit, remembering to purchase the £5pm Internet bundle, that's the closest you'll get.

redux

T-mobile used to do this - 5% discount when paying the whole lot at the start - but I have no idea whether it still does.