Optus New Phone Trade up

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  salbee28 on 11/03/2016 - 14:17

  In these cases I have found it was actually better to terminate my 24 month contract after 12 months (usually only have the pay the remaining handset repayments if you are re-contracting, payout depends on what phone you have, my last was an iPhone 6 64GB which I had to pay out $450), then I own that phone outright, which I can sell for more than the contract payout figure. Then I can take out a new 24 month contract for the phone I want, and continue that cycle for a phone refresh every 12 months if desired. There are also some sneaky terms in those trade up/new phone feeling deals that made them seem not super worth it, for me at least.

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  Stingy Student on 06/07/2016 - 23:40

  Do you reckon that you could:
  - purchase an iPhone 5s on a $40 per month contract
  - then after 12 months trade-up to whatever the latest iPhone at the time is?

  So after 12 months you've paid 40x12 = $480
  +$99 to trade up = $579

  Would seem like a good option to me, what does everyone else reckon?

  • 

    ilostnemo on 07/07/2016 - 09:32

    It's the new contract they sign you into , where the catch is.

    • 

      Stingy Student on 07/07/2016 - 11:24

      Oh righto, cheers for that.

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  [Deactivated] on 19/07/2016 - 16:37

  I wonder why this post isn't getting much attention.

  I think it's not straight forward calculations whether this is a good bargain or rip off, because the value of your old phone can be varied.

  So let's assume that you are after top-of-the-range phone and always after it as soon as it is released. Let's assume that value is $1000 outright.
  Let's also assume that the contract price doesn't increase or decrease. Let's assume this is $80pm.

  There are three options that you can do:

  1. Take the $99 trade up option.
     What you lose: $99 + old phone ($805) + extra 12 months in your contract (total 24 months).
     What you get: new phone ($1000).
     The bottom line: The value of your used phone is the major factor here. Let's say it loses 10%, then you lose $100, but then selling on eBay Fees, you would lose extra $95. So at minimum you would lose $195. Meaning to get a new $1000 phone, you pay $99+805+extra 12 months. If you repeat this next year, you will lose $94*2 = $188 over 24 months, but your contract stays 24 months. Total profit: $1000-$904 = $96 and new 24 months contract.

  2. Sell your old phone, buy a new one outright, keep the plan.
     What you lose: old phone ($805) + $ difference between old and new phone ($195).
     What you get: new phone ($1000) + no contract extension.
     The bottom line: As per above, you will lose minimum $195 from selling your old phone. Plus you need to shell out another $1000 to purchase your new phone. However, assuming in the end of the next 12 months, you will sell this phone (lose another $195), you can sign up to new contract and get another $1000 phone! Total cost: $195 (with only 12 months contract).

  3. Terminate the contract, sell your old phone, get a new one with a new plan.
     What you lose: old phone ($805) + Contract termination fees (assume $500) + (new 24 months contract)
     What you get: new phone ($1000)
     The bottom line: At a glance this is better than #1, but this depends heavily on how much you can get from selling your old phone (after fees). So if we assume you cn sell this at $900, ($805 after fees), then what you get (profit) is $1000 (new phone) - $195 (old phone difference) - $500 (contract fees) = $1305 (with new 24 months contract).

  Did I miss something?