New Mobile Phone buy out right or monthly with provider?

silentotter

I need to get a new iPhone in September when my iPhone 8 stops being supported with updates. Some time ago Martin advised to buy a new phone outright so you can keep your cheap mobile plan. Is that still the advice or has that opinion now changed to pay monthly via a mobile provider?

novoice

This really depends on your usage requirements and the deals available at the time...

Taking the iPhone 14 as an example

SIM Free price: £764

Just picking some contract plans for an average user, so say 50GB data a month, the cheapest current offers are on iD Mobile (from a third party retailer) at £32.99 a month with £74 upfront (using a discount code).

£32.99 x 24 months = £791.76 + £74 upfront = £865.76
or
£25.99 x 24 months = £623.76 + £226 upfront = £849.76

If you chose SIM Free + a SIM Only deal for 50GB data, you'd currently be looking at around £10 a month

£10 x 24 = £240 + £764 = £1004

This is not taking into account the annual price adjustment so the handset contract will see a greater increase than the cheaper SIM Only plan or if you buy your iPhone with finance that's not 0% interest.

If you require less data the figures will likely benefit SIM Free + SIM Only as the monthly cost would be less, it also gives you a bit more freedom if you choose a 1 month or 12 month contract allowing you to switch to cheaper deals if they become available.

This is only my advice, but I would wait the extra month to see what deals are available during the Black Friday period in November.

For the past three years they have been the cheapest prices at any other time of the year and the handset deals tend to run for at least two weeks.

Hope this helps

Peppa537

I've always found it cheaper overall to buy a phone outright (I usually buy an android, budget £300 max and phone lasts me at least 3 years before it needs upgrading) and have a sim only plan. It is also the advice I've given my daughters and they've done the same with iphones. Earlier this year my eldest bought an iPhone 13 outright and has a GiffGaff rolling 30 day sim, isn't tied in on this and can move elsewhere if needed. Also sometimes on iphones Amazon do interest free payments over 12 months on certain models, these can be overpaid at anytime as well which is also something my eldest has done previously,she paid it off in 6 months.
Working out price as the above post is what I also do, but for me not being tied in a contract with the same provider for 24+ months is also worthwhile in case of any issues. 

savergrant

One option mentioned on other threads is to buy the phone direct from apple, then choose and pay for your network plan separately. Alternatively some networks will offer a split deal but check carefully whether the handset finance allows for midcontract price increases to match rpi/cpi.

silentotter

Thanks everyone, so as I thought it’s best to buy outright 

Rob5342

silentotter said:

Thanks everyone, so as I thought it’s best to buy outright 

Novoice has given as example where paying monthly is cheaper. You really need to work out what's best value out of all the deals you find.

As mentioned above Amazon sometimes offer interest free payment plans on iPhones. Also, gifgaff sell refurbished phones which you can buy outright or pay monthly for.  They can be good if you are happy with an older phone.