What's new
  • Please do not post any links until you have 3 posts as they will automatically be rejected to prevent SPAM. Many words are also blocked due to being used in SPAM Messages. Thanks!

Hot Deals!!!!!

sswilson

Moderator
Staff member
Folding Team
Joined
Dec 9, 2006
Messages
18,944
Location
Moncton NB
Oh, 100% it'll be on a 2 year contract. Still, 800-1000 off is a big deal, unless you have a killer BYOP plan where it doesnt make sense.

People overvalue their BYOP plans tbh. My wife was on a $40-4gig BYOP package, am now paying $60, and effectively got her X for $480. Yes, I'm locked in for two years...but I can just pay the remaining subsidy ($20/mo) to walk away any time.

(For clarity, all phones in Canada are unlocked now from day 1. Some companies you have to ask, but there should be no charge and they MUST do it.)
I'm going to have to agree to disagree here. I have zero interest in being locked into a term contract, and if I was, I'd be considering the "phone credit" (Koodo's version of a term contract w/ device) as part of the price I was paying. With Koodo, they have the tab which is visible ($10/$15/$20 /mo depending on tier), but then they also have a "phone credit" which doesn't require paying down, but (like the tab) would have to be paid down (on a 24 mo pro-rated basis) if you decide to leave, replace your phone, and/or change plans.

(My current Koodo plan is $45 for 8GB)
 

JD

Moderator
Staff member
Joined
Jul 16, 2007
Messages
9,712
Location
Toronto, ON
It depends on how you look at things...

Whenever I've done the math, it never seems like a contract is significantly cheaper, if it at all. It's mostly just a 0% loan. Using the iPhone 11 and Koodo since that's who I'm with as the example, I'd be saving $24 on the phone cost (vs buying from Apple) and be losing 2GB of data.

Sales might make it more lucrative, but since people exploited Koodo so much for the past few years, the "deals" they used to have no longer exist. I don't think any other carrier was offering anything similar either.

For me, paying the 1 lump sum makes me feel better than increasing my monthly cost.
 

Sagath

Moderator
Staff member
Folding Team
Joined
Feb 7, 2009
Messages
4,396
Location
Edmonton, AB
Hmm. I must not be explaining myself well.

My wife was paying Z a month. She now pays Z+20 a month, for 2 years, and got an iPhone X thats worth 1400 if I bought it out brand new.

Thats $480. So you're right @sswilson, there is a 'tab', but there is also a non-repayable subsidy you can get when the deals are right. In my wifes case that was near to $1000. Effectively, if you look at the price to buy the phone outright, and take that off the z+20 plan, I'm actually paying Z-20.

Yes, shes locked in for 2 years. But exiting costs you paying off the phone...which you are all saying you'd rather pay in full anyways to even BYOP? 🧐

Edit: /r/PersonalFinanceCanada even has a spreasheet to calculate this out to do the raw math:

 

sswilson

Moderator
Staff member
Folding Team
Joined
Dec 9, 2006
Messages
18,944
Location
Moncton NB
Hmm. I must not be explaining myself well.

My wife was paying Z a month. She now pays Z+20 a month, for 2 years, and got an iPhone X thats worth 1400 if I bought it out brand new.

Thats $480. So you're right @sswilson, there is a 'tab', but there is also a non-repayable subsidy you can get when the deals are right. In my wifes case that was near to $1000. Effectively, if you look at the price to buy the phone outright, and take that off the z+20 plan, I'm actually paying Z-20.

Yes, shes locked in for 2 years. But exiting costs you paying off the phone...which you are all saying you'd rather pay in full anyways to even BYOP? 🧐

Edit: /r/PersonalFinanceCanada even has a spreasheet to calculate this out to do the raw math:

What happens to the "subsidy" if she decides to cancel her 2 year contract 1 month into it?

In Koodo's case... let's say it's a $480 phone on a small tab ($10 / mo )... they'll list it as $240 tab + $240 phone credit... if you stay for the full two years you only have to pay the $240 tab and they write off the phone credit at 1/24 / month, but if you cancel your contract 18 months early you have to pay back the balance on the tab ($180) as well as the remaining phone credit balance ($180). Add to this the fact that Koodo's valuations on their phones are well above actual market value (they seem to stick with the original MSRP no matter how old the phone is) and they're not much of a deal if you decide to vary the contract in under 24 months.

If you stay with your 2 year contract, and don't need/want to change your hardware during the 2 yr period you get a decent deal, but I personally put a lot of value on not being locked into a term contract and want to be able to either switch plans and/or hardware at a moments notice.
 

Sagath

Moderator
Staff member
Folding Team
Joined
Feb 7, 2009
Messages
4,396
Location
Edmonton, AB
What happens to the "subsidy" if she decides to cancel her 2 year contract 1 month into it?

In Koodo's case... let's say it's a $480 phone on a small tab ($10 / mo )... they'll list it as $240 tab + $240 phone credit... if you stay for the full two years you only have to pay the $240 tab and they write off the phone credit at 1/24 / month, but if you cancel your contract 18 months early you have to pay back the balance on the tab ($180) as well as the remaining phone credit balance ($180). Add to this the fact that Koodo's valuations on their phones are well above actual market value (they seem to stick with the original MSRP no matter how old the phone is) and they're not much of a deal if you decide to vary the contract in under 24 months.

If you stay with your 2 year contract, and don't need/want to change your hardware during the 2 yr period you get a decent deal, but I personally put a lot of value on not being locked into a term contract and want to be able to either switch plans and/or hardware at a moments notice.
I cant speak to Koodo, but for iPhones MSRP is MSRP at all of the carriers I've checked. No markup. I dont track android phones, for personal reasons I would never get one.

Your point hinges on portability. If you're buying a phone for 500, and you want to leave you're telling me "I can!".
But you're saying If you're with koodo, and you want to leave you're telling me you pay 500, and say "I can!" ? Whats the difference?

There is no negatives to being in a contract. Its very easy to walk away any time, and doesnt cost you anything. In my (my wifes) particular case, if she finishes the 2 year term, we're actually ahead $900, so there is a $40/month benefit to staying.
 

Mr. Friendly

Well-known member
Joined
Nov 21, 2007
Messages
4,415
Location
British Columbia
I cant speak to Koodo, but for iPhones MSRP is MSRP at all of the carriers I've checked. No markup. I dont track android phones, for personal reasons I would never get one.

Your point hinges on portability. If you're buying a phone for 500, and you want to leave you're telling me "I can!".
But you're saying If you're with koodo, and you want to leave you're telling me you pay 500, and say "I can!" ? Whats the difference?

There is no negatives to being in a contract. Its very easy to walk away any time, and doesnt cost you anything. In my (my wifes) particular case, if she finishes the 2 year term, we're actually ahead $900, so there is a $40/month benefit to staying.
how are contracts easy to walk away from Sagath?
 
Top