Need Advice: Advantages of buying a mobile phone outright?

Lvinatlasx on 03/11/2014 - 16:44

So I'm looking at purchasing a mobile phone outright but given that most decent new phones are around $500-$1000 it's a bit of a jump in the deep end for me.

I have my heart set a little on the Galaxy Note 4 but am open to suggestions. What I really would like to know from you guys is the major advantages for making a $1000-odd investment in a new phone over contracting and paying around the same amount over 2 years (including plan fees).

Were you guys able to sell your phones each year for a decent amount to make upgrading fairly cheap or is it something else?

Note: I've only ever contracted new phones, and only 2 at that.

Cheers in advance.

Mobile

Comments

  • highon2str on 03/11/2014 - 16:53

    I personally try to stay away from carrier branded/bloated phones. Slow to software updates, performance takes a hit, full of rubbish apps and warranty when it comes down to it, isn't usually that much better than buying outright locally or grey stock from OS.

  • CyberMurning on 03/11/2014 - 16:55
    +1

    all depends on your usage pattern, but if you are light to medium users, usually buying outright (grey import, even better) and put postpaid sim, will make you spend less compare with contract.
    also you can upgrade anytime, etc.

    comparing could become hard if if you want the latest gadgets…also if you only want to use telstra (because they are expensive!). but if you compare contracting note 3 and buying outright from kogan for example, then you will see.
    if what you want saving more, then get (good condition) 2nd hand.

    • ProjectZero on 03/11/2014 - 17:17
      +1

      … will make you spend less compare with contract.

      Not necessarily true, take the Xperia Z3 and Vodafone for example

      $70 red plan + $4 mobile cost equates to the same usage and data as $50 red

      So essentially you are paying $24 per month for the phone, $24^2 is $576.

      Xperia Z3 outright is $849 at Sony stores, Grey import is cheaper at around $600+. So technically it seems cheaper to buy from a plan sometimes.

      Of course, the advantage of outright is so you can choose a cheap plan like $19 liveconnected or something…

      My advice is to shop around first and make similar calculations.

      Only reason why I bought outright is the reason highon2str gave, faster firmware updates. Also, I dislike being stuck with a carrier and prefer month to month.

      • vinatlasx on 03/11/2014 - 17:27

        Thanks guys.

        Would you be able to explain grey imports a little further?

        Also, any idea of the trends in deals with new phones like the Note 4?

        • ProjectZero on 03/11/2014 - 17:43

          Would you be able to explain grey imports a little further?

          Grey imports are essentially the same product you can get in Aus (usually, same model number etc.) just different localisation. Sites which you can get grey import items are E.g. sites like Kogan and ebay.

          The reason they are so cheap is because they are products from other countries , again to use Kogan as an example, are usually purchased from HK. As these are purchased outside the country, they do not incur tax (all the technical stuff is beyond my understanding but that's the jist of it). As such if you just add tax back into the equation they are roughly the same price as the products you purchase in Aus (give or take).

          Grey imports, however, do not have local warranty. Meaning you are not able to go to a local warranty center and have they fix it for free even when you have a 1 year warranty. You will have to go back to the supplier, again in this case let's use Kogan, you will have to post it to Kogan which they will then on post it back to the country of origin's warranty center for repair. As a result, the turn around time for these repairs can be quite long.

          Also, any idea of the trends in deals with new phones like the Note 4?

          Not too sure, but i have heard rumors that they will follow in the note 3 and most likely drop in price after the next two to three months. May be faster seeing as they actually have an additional competition such as the iphone 6 plus now.

      • CyberMurning on 04/11/2014 - 08:51

        thats why i said, depending on your usage pattern… also dont get the latest gadgets (i think z3 is quite recent)

        • ProjectZero on 04/11/2014 - 09:08

          My suggestion was to shop around first, from looking for a new phone for myself recently, I find that the new phones seems to be cheaper with a plan as you can see from the example I gave and if you look at iphone 6 plus from Vodafone as well.

          As the OP seems to want the note 4, it might be worth checking out some plans before proceeding.

  • Islund on 03/11/2014 - 19:56
    +1

    I bought an iPhone 5 brand new off gumtree a couple of years back for $700.

    Sold it last month in Gumtree for $500 and will put that toward getting an iPhone 6 plus outright.

    Hope the above helps. iPhones may be expensive but they have resale value.

    • PVA on 03/11/2014 - 20:05
      -1

      But ts stil an iPhone :)

    • John on 04/11/2014 - 10:40

      I agree. I found Apple products hold the resale value much better compared to other brands. I look after my Apple stuff for this very reason. Have resold my iPhone, iPad, Macbook at good price to fund an upgrade.

      I also have couple of iPhones that has been passed on to family members. And its still working until today.

      Meanwhile my Xperia and Blackberry have been giving me faults that need to be repaired before i can resell it.

      Back to OP question, it all depends if theres a plan that suits your use. Im getting out of my plan because there are other cheaper prepaid options thst gives more data less monthly call/sms.. Works for me because i really only need data 95% of the time as I hardly make phone call

  • PVA on 03/11/2014 - 20:02

    The major advantage of outright is you get updates as the maker releases them rather than waiting on Optus Telstra etc to approve and release ( if they ever do)

    I have a Sony Xperia z and Sony has said that they will release android 5 for it. My bet wil be that it will never be available from Telstra or Optus.

    • beaver2233 on 06/11/2014 - 16:06

      this ain't 100% true - most outright phones you buy in Australia are still optus/telstra branded etc (from my experience anyway)

  • PlasticSpaceman on 04/11/2014 - 07:51

    I use my mobile a lot, and the unlimited plans appealed to me as I don't have to worry about excess fees…. I bought a Nexus and am paying $40 a month (sometimes less using dick smith vouchers etc) for Boost (Telstra) unlimited. I figure, compared to a Telstra/Optarse plan with mobile included, I can throw away my mobile and get a new one every year and still be ahead…. Yes I miss out on 4g speed but 3g is fine for me…. Just checked - the Telstra XL plan is $130 per month, so I'd be paying $90 per month for my 'free' mobile and access to 4g…

  • ddrex on 04/11/2014 - 10:55

    I think with new phones, its a significantly cheaper to buy outright if you want to be on telstra, and it would be about the same if you wanted optus/voda. I bought my old phone outright because i needed telstra for reception and it was cheaper then getting on the plan as they were really exy back then and aldi and boost didnt exist. Telstra wanted $20 per month for phone on the plan plus $10/month for insurance back then. The phone outright came with one year insurance, so on plan, it would cost me extra 24x20 + optional 1year insurance 12x10 = $600. I got the phone for ~$400 and didn't worry about 2nd year insurance. Now i'm on aldi and boost and will likely never buy a phone on a plan again.

  • branners on 04/11/2014 - 19:58

    Telcos will push you towards a contract for a reason, and it has to do with how much they will make during the duration of your deal.
    I switched everyone in my family to prepaid 2 years ago and we have saved a heap. We use Vaya, very happy, though others may prefer to use a deal that uses the Telstra network.
    Great choice of premium handsets available outright now for not much money; Nexus 5, OnePlus One if you are an Android user, or some good value on Nokia Windows phones. A Note 4 is a good unit if you can get a good deal, providing you don't mind the bloatware quirks of a Samsung. But the buy the handset/no contract model works less well if you want to buy a new iPhone.

  • altomic on 04/11/2014 - 21:29

    why not buy a china droid phone? $300 can you get a very good phone.

  • vinatlasx on 06/11/2014 - 00:21

    Just came back to check if there were anymore comments. Thanks for all the advice guys.

    I'm considering the OnePlus One for the price, specs and sheer flexibility but I still have a soft spot for the Galaxy phones (may be because they're all I've used since the first Galaxy S).

    I'm sure the price will dictate my decision in the end though. If I can get the Note 4 for a decent price in the next few months, I think I'll probably get one.

    Thanks again guys.

  • DarthAntz on 06/11/2014 - 16:18

    Nokia 301- 5 day battery life, makes calls, sends texts, its the ultimate nostalgia phone. $50 and will last you 2 years no problem

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