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Buy a mobile phone on a plan or outright, which to prefer?

  • July 22, 2022
  • 4 min read
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Buy a mobile phone on a plan or outright, which to prefer?

Mobile phones in today’s time are the go-to medium to bust boredom. As Aussies love to own a smartphone, you will hardly find anyone who doesn’t own one. 

There are options to buy a phone or rent a mobile phone, so that will take people in a dilemma. 

The article discusses which option is better to get the best value for payment. 

Are you buying outright or on a plan?

  • Buying on a plan: You will get a connection and a limited free text or call monthly. It means you will have to remain under the contract for the duration. 

You will pay instalments monthly or weekly as decided but will have to return the mobile after the agreement ends.

  • Buying outright: In this case, you are paying for the mobile outright. It means that you own the phone as soon as you pay and get the receipt. 

You can choose your tele-provider according to your needs. Also, you no longer have to select call/text plans according to the agreement. 

Which option saves money?

As you consider renting a mobile phone, it bounds you for years mentioned in the contract. Therefore, you may need to pay termination fees or remaining payments if you opt out between the agreement duration. 

It is essential to read the instructions and terms of the contract. So which option seems viable? 

Buying an outright mobile means you don’t need to pay anything in instalments and is under no contract boundaries. In addition, it allows you to choose your text/call plans and tele-provider. 

Buying a smartphone outright may not be feasible for everyone.

Things to consider while renting 

Seeing hefty mobiles on rent may sound overwhelming, but the picture isn’t rosy. 

Consider the usability of the phone and how it will impact your lifestyle. Imagine renting an iPhone just for style while paying instalments is not at all a good idea. 

Few things to consider before buying a mobile on a plan:

  • How different is it from the handsets you used before?
  • Whether it is iPhone or Android model?
  • Renting cost 
  • Storage space availability 
  • Processor speed 
  • Battery life
  • The size of the screen 
  • The camera quality 

After understanding your budget, understand which range mobile you can afford on a plan, whether top model, mid-range or under-budget model.

 There are numerous options available on the phone under budget. With essential functionality available, you will complete your relevant tasks with ease. 

Benefits of buying on plan 

Every person cannot afford to buy a phone outright. After considering which will fulfil value, purchasing a plan is not bad.

 Here are a few benefits of buying on a plan:

  • Contract deals: There are a lot of options out there. You can even come across a cheaper plan than purchasing it outright. 

It is essential to compare the offers provided by different tele-providers. 

  • Easier to upgrade: This benefit applies when buying a phone on rent rather than outright. After connecting with your tele-provider, you can upgrade to a new model. 

Ensure you will pay instalments consistently. 

  • Additional perks: Some contracts also offer discounts such as unlimited calls/ texts, extra data etc. Thoroughly read agreement instructions to understand the cost and benefits of each deal. 

Summing up

Buying a mobile phone on plan or outright is the final decision one should take after considering everything. To rent a mobile phone may seem pleasing, but you don’t get swayed away by offers. 

Understand and thoroughly go through the contract before deciding upon a handset.