T-Mobile - Upgrade or SIM Free?

Happy_Shrimper

Ok. Long story short.
I Lost phone recently and fortunately free mobile insurance on my current account is paying out a cash settlement as they can't find a replacement for my Vario 1.
I'm currently out of contract with T-Mobile and can get an upgrade for £180 to Vario 3 or take a £10 per month tarrif cut with no phone.
Here are the options I am considering:

Option 1) Take the Vario 3 upgrade at £180 for 18 month contract.
Total cost:
£180 for the phone
£180 for extra £10 per month for the tariff (currently on 25% discount on Flext 25 with WNW plus a short term non contract £10 discount for 6 months)
----
£360
Advantages:
Keep my 25% for life discount
Keep current T&C i.e. per second billing, voicemail in allowance (no longer available)
Good receipt/dispatch note which is required by insurance Co in the event of a claim
One point of contact if things go wrong
Works out the cheapest over 18 months
Disadvantages:
18 month contract - if another operator introduces a competing Data tariff can't swap network
Vario 3 doesn't look as good as HTC TYTN2 i.e. T-Mobile branding etc

Option 2) Buy a SIM free TYTN2 and stay contract free with TM (another 4 months on my £10 discount)

£420 for phone
£0 extra on tariff for the first 4 months anyway with option to negotiate discount on tariff for 18 month contract - already offered £10 discount for 18 months without phone. But no rush for that as I have 4 months remaining with no comitment!
----
£420 total cost

Advantages:
Better looking phone
Unlocked phone; can try it on 3 PAYG or TM PAYG with their data packages
Possibilty of no 18 month contract
Option to take 18 months at very low contract rate
Reputable retailer of phone provides reciept with IMIE number for insurance purposes

Disadvantages:
Costs more
If phone plays up, have to deal with retailer (Expansys, Handtec or who ever)

Option 3) Buy a unwanted Vario 3 on Ebay :eek:
£320 phone
£0 extra on tariff for the first 4 months anyway with option to negotiate discount on tariff for 18 month contract - already offered £10 discount for 18 months without phone. But no rush for that as I have 4 months remaining with no comitment!
Advantages:
Cheapest

Disadvantage:
No proper receipt for insurance
Could be faulty; little recourse
More likely to be a Vario 3 than a TYTN 2

I'm favouring option 1 or 2. Any advice? particualry on the pros and cons of a Vario 3 vs TYTN 2 unlocked.
One other option not listed was to take out a new contract with TM for a cheaper phone, but with my discounts, it won't take long to re-coup the price difference, and my T&Cs are much better.

greyster

depends how much you want a particular phone, else take the cheapest cost of ownership for phone+contract. Ebay is not too risky if you buy from a business online, they may even have their own website.