Can I buy a contract phone from someone?

axil23

A work colleague has got a new contract iPhone through Vodafone but he wants to sell it to pay for a holiday. 
He has the original receipt and box etc so it's not stolen but what worries me is what happens if he stops paying his contract off? Can Vodafone block his IMEI and make the phone useless? He got it just a few days ago. 

Is there anything I should do before buying it? Get a copt of receipt etc? 

Mark_d

I think you're right to be cautious.  I would be very hesitant to buy a phone, a car...or indeed anything whilst it's still under contract.  I don't know if Vodafone would continue to have any rights over the phone.

If your colleague wants to go on holiday, can't he return his phone within a cooling off period?  A number of holiday companies offer interest free plans on holidays.  I'm really understand what your work colleague is up to, and why.

axil23

His logic is that the phone cost him £80 upfront and then 24 payments. He doesn't have the money for the holiday otherwise. 

A lot of people do that on eBay. They will upgrade the phone and sell it for a quick buck as they don't want the latest phone. 

Just wondering if Vodafone can block it then how do all these companies counter it who trade second hand phones. 

Mark_d

I'm not an expert but there should be two sides to the contract with Vodafone - possibly even two contracts. One would relate to paying for the handset and the other would be for line rental/call charges.  If you were to buy the phone, would your colleague keep the phone contract is his name and transfer the airtime contract into your name?  Or would your colleague pay the entire bill, including for any premium rate calls you make?

If your colleague simply stops paying for the phone, I think all that would happen is that he'd get a black mark on his credit report and possibly debt collectors.  Blocking phones is normally only when phones are reported stolen.

axil23

He would keep both contracts under his name. I am just buying the phone off him. 

Just had a chat with Vodafone who claim they can block phone if he stops paying for it. Google searches suggest they only block if reported stolen. 

Does anyone know? 

matelodave

TBH I'd steer clear of anything like this.

What we think is irrelevant as no one knows what VF might do if your colleague defaults. AFAIK if he takes out a contract to buy the phone over 24 months then depending on the T&C's he does not own the phone until the contract is paid off. If he isn't the legal owner then neither will you be, but its entirely your decision if you want to risk it

What VF might have done previously is no indication of what they might do in the future and you could end up with a very expensive brick if they decide to block it and you'd have no way of getting it sorted out. 

Desmond_Hume

Probably worth pointing your colleague in the direction of this site. Selling a phone as you can’t afford a holiday? Sounds like he can’t afford either at the minute. 

eDicky

Ask if he bought insurance for the handset. After his holiday would he again need money badly enough to report it lost/stolen to make a claim..?

Emmia

If you want an iPhone I'd get one entirely separately from your colleague - direct so you're in control of the contract.

km1500

yes if he stopped paying Voda would cut off the airtime and block the phone - also likely send in the debt collectors

saajan_12

He's effectively trying to get a £500 loan from Vodafone and you too guarantee it. 

I don't know what implicit interest is built in ie
(total of his payments - phone value) / phone value

Questions to ask yourself:
- was to is the plan all along or had something changed between deciding to get the upgrade? The former is more shady..
- why wouldn't he just get a normal loan rather than these shenanigans?
- Is it because his credit is so poor, ie a lender is nervous about lending? 
- What's in it for you Vs just buying a phone from a shop?