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Why could the Carphone Warehouse give me a better deal on O2 than the O2 Store could?

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I'm currently on EE that my step dad pays for, and the two year contract on that ends this month and I've been saying all year that I'm in university now, I get a student loan, it's about time I paid my own contract.

So I knew I wanted an iPhone 7, and so I was shopping around today and EE weren't offering us a good deal and wanted too much money for practically no allowances, so O2 was my second option where I went into branch and asked them if I could pay more money upfront and pay less per month, the guy there said I couldn't unless I pay it off after the first month's bill. He was determined to get £55 - £60 a month out of me, when I didn't really want to go above £40. He wouldn't accept this offer, so I headed to the Carphone warehouse.

The girl there looked everything up, and when she added what I wanted, EE, O2 and Vodafone cropped up. And O2 had the exact upfront payment I wanted to pay, and £40 a month with the allowances and everything I wanted. So I accepted and pre-ordered.

I asked the lady why they're offering more than O2 could for cheaper, and she didn't know. But I'm shocked that I haven't dealt with these guys before. Or is there some sort of catch? Why couldn't O2 offer me the same deal?

Comments

  • prowla
    prowla Posts: 13,986 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    They have offered me better EE deals than EE too!
    I think they do sell your details though.
  • Jon_01
    Jon_01 Posts: 5,915 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Dealers get a kick back from the network they sign you up to. They use part of that to give a discount, that's how they can be cheaper then going to the network directly.
  • Wow. Racking up all that debt and so eager to add to it. Times really have changed and it's easy to see why the country is in hock up to its eyeballs.
  • prowla
    prowla Posts: 13,986 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Wow. Racking up all that debt and so eager to add to it. Times really have changed and it's easy to see why the country is in hock up to its eyeballs.
    £40 a month isn't exactly in hock up to your eyeballs, is it?
  • jb66
    jb66 Posts: 1,705 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    If o2 had better deals than carphonewarehouse then carphonewarehouse wouldn't exist
  • mobilejunkie
    mobilejunkie Posts: 8,460 Forumite
    edited 10 September 2016 at 12:58PM
    prowla wrote: »
    £40 a month isn't exactly in hock up to your eyeballs, is it?

    Obviously lacking basic understanding and the ability to read what I wrote. However, I will explain the basics for you. Student loan = debt. Average debt on leaving university is very substantial. Person can't afford own mobile until they receive a student loan. If you think £40 a month on top is negligible you live on a different planet to me. My comment was about the overall effect of thousands of people doing the same thing at a country level; DA! I don't need a degree to understand basic economics; my A grade A level and 34 years running my own business would do that several times over.
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