Buying Phone That's under Contract? (Pixel 2 XL)

• 

  [Deactivated] on 03/03/2018 - 20:16

  +1

  Most telcos basically work like this if you are buying

  A phone plan is basically split into 2 parts
  -The Phone Cost
  -The Plan Cost
  you are basically paying for the phone overtime alongside your bill.

  The phone cost is basically the amount of money you are paying them back each month to pay off the phone. If you cancel the contract you will need to pay this cost in full back to the telco + some addition costs of the phone that the telco would cover if you stayed on contract (Will usually add up to around the rrp of the phone)

  The Plan cost is as usual- the monthly cost to get your phone service and data. Depending on which telco you sign with these may be month to month plans or on a contract the same length as your phone contract.

  In most cases the higher the plan cost you pay the lower the phone cost and vice versa. But it is important to keep in mind the following examples:

  1.For example if you sign for a $90 plan that comes with the "Apple WowPhone Xtreme" and the Plan cost is $80/month and the Phone cost is $10/month over 24 months
  -on this plan if you leave the contract early you will be paying a very high phone coverage cost because if you leave early you will need to cover the coverage costs the telco was giving you. So in fact leaving early in this plan would NOT cost $10x remaining months but actually $10x remaining months + coverage costs (usually til rrp)
  -Note also if you do go through the 24 month contract you will still be paying $80 after the fact as the plan is perpetual so there will be no huge drop in price like the next example i have

  2.For example if you sign for a $65 plan that comes with the "Apple WowPhone Xtreme" and the plan cost is $20/ month and the phone cost is $45/ month for 24 months
  -overall cost will be lower but you will take a hit on plan features such as data
  -you will be paying more for the phone as the coverage costs over the plan are less than the deal before.
  -once you finish paying off the phone the monthly cost will drop to $20

  Important to note that if you leave early on contract with either plan you will be compensating close to the full rrp of the phone back to the telco
  You can save a lot more on the phone cost on a high cost plan but you will be forced to sign onto a high cost plan.

  Warranty is as normal you get whatever the manufacturer warranty is. Telcos will differ as they offer you extended warranty on sale if you need it.

  Also some telcos offer leasing of phones where you wont get to keep the phone at the end of the plan just be aware of that.

  If you don't think you can commit to a plan I suggest you do as you've always done and get a phone outright + regular month to month plan as the plan quality is usually higher than with a phone plan.

  Lastly, My advice and knowledge is very general so be sure to read through the fine print of every contract you consider so your ass don't get bitten in the future!
  If you have any more Questions please ask :D

  • 

    boomersgold on 03/03/2018 - 20:39

    I don't think your answer directly applies to me (as it's more for someone who is getting a phone on a plan whereas I was asking about buying a phone on a plan from someone else). I did however learn a lot about how mobile plans all work so thank you for the detailed response! =)

    Let's say you signed up to that $90 plan for the "Apple NextGen Xtreme Plus 2" but you dislike the phone. Can you then sell it? By selling it, is your plan transferred to the buyer or do you still have to continue paying it until it's paid out/cancelled?

    As the buyer, I just want to make sure that I'm not responsible for paying the seller's phone plan or any other hidden costs.

    • 

      pao2x on 03/03/2018 - 20:53

      +1

      You are free to sell the phone or buy a phone from a plan holder.

      It is the plan holder's responsibilty to pay out his contract not a buyer of their phone.

    • 

      [Deactivated] on 03/03/2018 - 21:18

      +2

      ah ok yes I get what you are asking

      and yes what pao2x said you can sell the phone but the plan isnt going to transfer. You will still be liable to pay the phone off.

      The only thing i can think of noting is that the phone is very likely to be network locked unlike outright phones so keep that in mind.

    • 

      Islund on 03/03/2018 - 22:23

      +1

      I think the current Telstra deals are lease only and the phone needs to be returned to Telstra at the end of the contract.

      That in itself brings about the question of whether you are buying a phone from someone who is not the owner but, just renting the phone.

      • 

        John Kimble on 03/03/2018 - 22:23

        +2

        You can buy or lease. Lease is usually only $10 per month cheaper.

• 

  Topdog on 03/03/2018 - 21:27

  +4

  The original owner can report the phone as stolen for a dodgey insurance scam. The telco sometimes blocks the imei in these situations.

• 

  follow on 03/03/2018 - 23:51

  +1

  warranty side, telstra is great. however, don't go into a store as you'll end up leaving without any assistance since you don't have an account.
  tell them to send you the imei and search here.
  that will be your receipt. for any issues send the mobile by mail to the national repair centre and supply the epow. fill out this form too found here when you put in details.

  so you know, since you don't have a "real" receipt you'll only be able to repair or replace.