Time for new phone, Buy or Lease?

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MNGopher
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Time for new phone, Buy or Lease?

Post by MNGopher » Wed Aug 15, 2018 2:41 pm

So, with over 4 years on my current HTC phone, things are starting to not work so great and it's time fore an upgrade. From an economic point of view is it better to buy today, as opposed to leasing, if I plan to keep the phone at least a couple years? I'm not the type to need the latest and greatest and I take good care of my stuff, so my intuition says that buying outright will save me money, or am I missing something?

TOJ
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Re: Time for new phone, Buy or Lease?

Post by TOJ » Wed Aug 15, 2018 2:43 pm

What are the terms of the phone lease? Never seen that. The options I've seen usually involve buying the phone either up front or with 0% interest over 24 months (AT&T). Both cost the same total dollars.

MNGopher
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Re: Time for new phone, Buy or Lease?

Post by MNGopher » Wed Aug 15, 2018 2:51 pm

I haven't decided a phone yet, but just as an example, Sprint offers a Samsung Galaxy S8 for about $650 outright, or an 18 month lease at 28/mo with the option to upgrade or payoff the balance after 18 months. I've never leased anything in my life, and am generally against the idea, but I'm very ignorant about new phone plans since I've had the current one 4+ years (bought outright).

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greg24
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Re: Time for new phone, Buy or Lease?

Post by greg24 » Wed Aug 15, 2018 2:54 pm

So you can lease for 18 months for $504 or purchase for $650.

Given that you've hard your current phone for 4+ years, I think this new phone will have at least $146 of value at the end of 18 months.

You should purchase.

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sunny_socal
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Re: Time for new phone, Buy or Lease?

Post by sunny_socal » Wed Aug 15, 2018 5:16 pm

I'd buy an entry/mid phone. You can get a Motorola from Costco for about $120 and any of the newer phones at places like Cricket are about $100-150. They are all equivalent to "high end" phones from a couple years ago.

For reference I just received a Samsung J7 Star from my employer. It has better specs than my Note 3 which was an $800 flagship at the time of introduction. The J7 Star probably has a $200 street price.

hicabob
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Re: Time for new phone, Buy or Lease?

Post by hicabob » Wed Aug 15, 2018 5:20 pm

sunny_socal wrote:
Wed Aug 15, 2018 5:16 pm
I'd buy an entry/mid phone. You can get a Motorola from Costco for about $120 and any of the newer phones at places like Cricket are about $100-150. They are all equivalent to "high end" phones from a couple years ago.

For reference I just received a Samsung J7 Star from my employer. It has better specs than my Note 3 which was an $800 flagship at the time of introduction. The J7 Star probably has a $200 street price.
Note 3 is 5 years old which is ancient in phone years. I played with a Note 9 yesterday and it's gorgeous. I'm tempted but it is $1000.

MNGopher
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Re: Time for new phone, Buy or Lease?

Post by MNGopher » Wed Aug 15, 2018 5:26 pm

sunny_socal wrote:
Wed Aug 15, 2018 5:16 pm
I'd buy an entry/mid phone. You can get a Motorola from Costco for about $120 and any of the newer phones at places like Cricket are about $100-150. They are all equivalent to "high end" phones from a couple years ago.

For reference I just received a Samsung J7 Star from my employer. It has better specs than my Note 3 which was an $800 flagship at the time of introduction. The J7 Star probably has a $200 street price.
The sprint site has a Samsung J7 Refine for $288 or 12/mo for 18 months.

What's the major difference between a $300 phone and an $700/800 phone? Battery life? Optical or sound quality?

gostars
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Re: Time for new phone, Buy or Lease?

Post by gostars » Thu Aug 16, 2018 1:37 am

J7 Refine and Star are jokes, right? $250+ for 2GB of RAM and a 720p display? It's not 2015 anymore, Samsung. For that kind of money, you can get 3-4 GB of RAM and a 1080p screen. Something like a Moto G6 or Huawei Mate SE. Have to leave Sprint though, because they only allow their own phones in.

denovo
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Re: Time for new phone, Buy or Lease?

Post by denovo » Thu Aug 16, 2018 4:42 am

MNGopher wrote:
Wed Aug 15, 2018 2:41 pm
So, with over 4 years on my current HTC phone, things are starting to not work so great and it's time fore an upgrade. From an economic point of view is it better to buy today, as opposed to leasing, if I plan to keep the phone at least a couple years? I'm not the type to need the latest and greatest and I take good care of my stuff, so my intuition says that buying outright will save me money, or am I missing something?
Can you link to this phone leasing?
"Don't trust everything you read on the Internet"- Abraham Lincoln

A440
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Re: Time for new phone, Buy or Lease?

Post by A440 » Thu Aug 16, 2018 7:11 am

If you have Xfinity internet (Comcast), you could get a phone for free from xfinity mobile.
Kudos to another BH for letting us know about this offer. www.xfinity.com/mobile

We "purchased" phones and ported numbers from T-mobile. After 90 days, we will receive a Visa pre-paid gift card for $150 each (3 total), the phone cost $120 (There are other offers for different phones). Another bonus is we share data ($12/per gig or $45 for unlimited, per month). Our last billing cycle we only used a combined gig, so our bill for 3 lines was $12. The phones automatically connect to xfinity wifi zones, and we turn off cellular data unless we are not in a wifi zone.

bob60014
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Re: Time for new phone, Buy or Lease?

Post by bob60014 » Thu Aug 16, 2018 8:02 am

Im looking for a new phone too and I dont like being tied to one carrier. So I'll throw this out as another suggestion. Perhaps go direct thru Samsung. They offer a Galaxy S8 unlocked (can be used on almost any network) for $599 or $25/mo 24 month interest free. They also have similar terms, naturally higher price for the S8 Plus, S9, S9 Plus.
You own it and can use any carrier. As a bonus, if you travel overseas its perfect.

Check Amazon also, (do not get the international version, no warranties) similar pricing and financing if you use their credit cards.

mmmodem
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Re: Time for new phone, Buy or Lease?

Post by mmmodem » Thu Aug 16, 2018 8:19 am

A phone lease is not the same as a car lease which is also not the same as a home rental lease. At least in terms of good and bad.

On a phone lease, you pay a lower monthly fee than financing. At the end of the lease you pay off the remainder of the value when new subtracted by your monthly payments. In essence, you pay the same total cost to own the phone as if you were financing. You just have a balloon payment at the end. There is no interest being paid. This is drastically different from calculated residual values on a car leases.

The reason I think phone leases are generally good is because often times, the total cost to own a phone through a lease is lower than purchasing the phone outright. Take the case of the current iPhone X lease promotion on Sprint. You can lease the phone for 18 months at $20 a month and purchase at the end for $250. That means you would pay $610 for a phone that costs nearly $1000. This isn't always the case but like I said at the beginning, the worst phone leases I've seen is that you pay full purchase price for it.

In case you're wondering what's the catch. The catch is the lease discount is credited monthly. If you cancel service, you don't get the full lease discount. This is akin to a cell phone contract of yore.

Jags4186
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Re: Time for new phone, Buy or Lease?

Post by Jags4186 » Thu Aug 16, 2018 8:28 am

Another disadvantage of the lease is that if you forget about it you continue paying the lease payment indefinitely without lowering he payoff amount—say you wait 24 months before upgrading. There was an article about Sprint talking about how this is part of the strategy.

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bottlecap
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Re: Time for new phone, Buy or Lease?

Post by bottlecap » Thu Aug 16, 2018 8:30 am

I got an Android off of Amazon for less than $250. It's better than my previous iPhone 6.

Just search the internet for phone reviews and buy one. There are a number of fine options for less than $300.

JT

LiterallyIronic
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Re: Time for new phone, Buy or Lease?

Post by LiterallyIronic » Thu Aug 16, 2018 8:37 am

sunny_socal wrote:
Wed Aug 15, 2018 5:16 pm
I'd buy an entry/mid phone. You can get a Motorola from Costco for about $120 and any of the newer phones at places like Cricket are about $100-150. They are all equivalent to "high end" phones from a couple years ago.

For reference I just received a Samsung J7 Star from my employer. It has better specs than my Note 3 which was an $800 flagship at the time of introduction. The J7 Star probably has a $200 street price.
I just replaced my six-year-old LG MyTouch Q with an LG K30 for $225. It's got a front-facing camera and it can access the Internet, unlike my old phone. No idea what a $650 phone would get you beyond that, so I don't really know what the point of a more expensive phone is.
Last edited by LiterallyIronic on Thu Aug 16, 2018 9:26 am, edited 1 time in total.

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Alexa9
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Re: Time for new phone, Buy or Lease?

Post by Alexa9 » Thu Aug 16, 2018 9:09 am

I would buy a newer used/refurbished phone on eBay/Amazon. You can save ~25%.
People are so particular about phones they will get rid of their brand new phone to get a different one.
The Pixel 2 and Galaxy S8 are a great deal.

28fe6
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Re: Time for new phone, Buy or Lease?

Post by 28fe6 » Thu Aug 16, 2018 9:16 am

I went with Moto X4 through Project Fi. I think it was $240 with free financing which I took advantage of. Very happy so far; big upgrade from my Verizon Samsung S4 which I had for about 4 years.

aristotelian
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Re: Time for new phone, Buy or Lease?

Post by aristotelian » Thu Aug 16, 2018 9:19 am

My approach is to buy an unlocked phone and use a discount provider (Cricket, $35/month). Clark Howard has been recommending the Moto G5+ ($219 from Amazon) . I have a Blu phone that I got for under $100. Do you need your phone to do anything advanced?

nyclon
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Re: Time for new phone, Buy or Lease?

Post by nyclon » Thu Aug 16, 2018 9:19 am

MNGopher wrote:
Wed Aug 15, 2018 2:41 pm
So, with over 4 years on my current HTC phone, things are starting to not work so great and it's time fore an upgrade. From an economic point of view is it better to buy today, as opposed to leasing, if I plan to keep the phone at least a couple years? I'm not the type to need the latest and greatest and I take good care of my stuff, so my intuition says that buying outright will save me money, or am I missing something?
Buy unlocked, refurbished on eBay.

Maverick3320
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Re: Time for new phone, Buy or Lease?

Post by Maverick3320 » Thu Aug 16, 2018 12:05 pm

aristotelian wrote:
Thu Aug 16, 2018 9:19 am
My approach is to buy an unlocked phone and use a discount provider (Cricket, $35/month). Clark Howard has been recommending the Moto G5+ ($219 from Amazon) . I have a Blu phone that I got for under $100. Do you need your phone to do anything advanced?
I do the same thing. Don't buy BLU phones, though...they are tech garbage and apparently (at least a few years back) crawling with spyware. Companies like that need to be put out of business.

I went with the Moto G5+ and currently love it.

selters
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Re: Time for new phone, Buy or Lease?

Post by selters » Thu Aug 16, 2018 12:13 pm

MNGopher wrote:
Wed Aug 15, 2018 5:26 pm

What's the major difference between a $300 phone and an $700/800 phone? Battery life? Optical or sound quality?
The camera, first and foremost. If you want to buy Samsung, but still want decent performance and a good camera, the S7 is probably the best value. It costs a third of a new S9, but still has better performance and camera than today's mid range models at the same price.

aristotelian
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Re: Time for new phone, Buy or Lease?

Post by aristotelian » Thu Aug 16, 2018 12:18 pm

:)
Maverick3320 wrote:
Thu Aug 16, 2018 12:05 pm
aristotelian wrote:
Thu Aug 16, 2018 9:19 am
My approach is to buy an unlocked phone and use a discount provider (Cricket, $35/month). Clark Howard has been recommending the Moto G5+ ($219 from Amazon) . I have a Blu phone that I got for under $100. Do you need your phone to do anything advanced?
I do the same thing. Don't buy BLU phones, though...they are tech garbage and apparently (at least a few years back) crawling with spyware. Companies like that need to be put out of business.

I went with the Moto G5+ and currently love it.
I heard that there were some problems with BLU phones that have since been resolved. I have been happy with mine although I would not give it a strong recommendation.

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Toons
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Re: Time for new phone, Buy or Lease?

Post by Toons » Thu Aug 16, 2018 12:20 pm

Buy a phone from Walmart -Straight talk
Iphone,Samsung
Get the unlimited plan
55 a month.
50 the first three months if you autofill.
They reserve the right to check account once you reach
60 gigabytes of data :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

Jack FFR1846
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Re: Time for new phone, Buy or Lease?

Post by Jack FFR1846 » Thu Aug 16, 2018 12:21 pm

I just went through this with one of my sons. He went with a last generation LG somethingorother. We're on Cricket. Phone, activation, case, shipping $210.92. 5G on the plan and if you hit that, they throttle the speed but no added cost. First phone is $35 a month with a credit card on file and auto pay. They use the AT&T system. Oh....that $35....that's all in. No trumped up fees or fake taxes added.
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Hypersion
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Re: Time for new phone, Buy or Lease?

Post by Hypersion » Thu Aug 16, 2018 12:45 pm

Buy a Motorola g6 for $250 and get Cricket(AT&T) or PagePlus(Verizon)

MNGopher
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Re: Time for new phone, Buy or Lease?

Post by MNGopher » Thu Aug 16, 2018 2:36 pm

Thanks for the replies and patience. I am very tech ignorant.

I there any disadvantage to buying an unlocked phone on say, Amazon? They seem a lot cheaper, but are they more expensive to activate? Just trying to learn.

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sunny_socal
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Re: Time for new phone, Buy or Lease?

Post by sunny_socal » Thu Aug 16, 2018 3:13 pm

MNGopher wrote:
Thu Aug 16, 2018 2:36 pm
Thanks for the replies and patience. I am very tech ignorant.

I there any disadvantage to buying an unlocked phone on say, Amazon? They seem a lot cheaper, but are they more expensive to activate? Just trying to learn.
No added cost

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bottlecap
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Re: Time for new phone, Buy or Lease?

Post by bottlecap » Thu Aug 16, 2018 3:15 pm

MNGopher wrote:
Thu Aug 16, 2018 2:36 pm
Thanks for the replies and patience. I am very tech ignorant.

I there any disadvantage to buying an unlocked phone on say, Amazon? They seem a lot cheaper, but are they more expensive to activate? Just trying to learn.
I didn't experience a disadvantage.

It will cost about $25 to activate.

Just make sure the phone works with your provider. Or the provider you intend to switch to.

JT

bob60014
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Re: Time for new phone, Buy or Lease?

Post by bob60014 » Thu Aug 16, 2018 4:23 pm

MNGopher wrote:
Thu Aug 16, 2018 2:36 pm
Thanks for the replies and patience. I am very tech ignorant.

I there any disadvantage to buying an unlocked phone on say, Amazon? They seem a lot cheaper, but are they more expensive to activate? Just trying to learn.
As I indicated earlier,

DO NOT GET THE INTERNATIONAL VERSIONS, THERE ARE NO WARRANTIES.
Also, a plus if it says " Unlocked by Samsung" or Motorola, or LG etc.., generally meaning it's done at the factory, keeping U.S. warranty intact.

Additionally, I would buy direct from Amazon, not one of the third party vendors. Just me, but I like having confidence that I can return it without issue should something go wrong.

Same activation fee apply, if any, depending on your carrier. .

stvyreb
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Re: Time for new phone, Buy or Lease?

Post by stvyreb » Fri Aug 17, 2018 7:17 pm

28fe6 wrote:
Thu Aug 16, 2018 9:16 am
I went with Moto X4 through Project Fi. I think it was $240 with free financing which I took advantage of. Very happy so far; big upgrade from my Verizon Samsung S4 which I had for about 4 years.
yeah, midlevel, MotoX4 MintSimmobile.com $20/mo no-contract US system in ridiculous , unless you must have the lastest iphones, it's all a convulated scam KISS

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Taz
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Re: Time for new phone, Buy or Lease?

Post by Taz » Sat Aug 18, 2018 8:56 am

Moto X4 from Amazon. Great features including fingerprint lock. It works on all major carriers.

I use A Verizon MNVO (Puppy wireless $26 2 GB/month) although I'm probably going to switch to Total Wireless's 2 line shared 15 GB @$57/month. If you want an iPhone, they have a new 32GB SE for $139.

The downside of many MNVO's is that advanced calling features & visual voicemail may not be available (especially Android phones). You can setup Google voice & get voicemail transcripts. Nice to have for the stupid IRS scam calls.
The destination matters.

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