[hamigo]

I'm a Virgin Media customer, i'm thinking of getting a Samsung Galaxy Ace or Ace Plus.

Q-1, Which is the best, buy phone outright or by contract?.

Q-2, What is your opinion on Samsung Galaxy Ace or Ace Plus.

Q-3, Is insurance worth it for a mobile phone and where is the best deal.


Thank You in Advance for any Advice.

[call100]

Q1 Buy outright......Contracts are too long in a fast moving world. I don't understand why people have 2 year contracts if they can afford to buy the phone outright.

Q2 The Ace plus would be the better phone by a small margin IMO.

Q3. I don't think the insurance is worth it. Check your house contents insurance, it may already be covered...

[TheBigM]

Originally Posted by call100

Q1 Buy outright......Contracts are too long in a fast moving world. I don't understand why people have 2 year contracts if they can afford to buy the phone outright.

Several reasons:

1) A contract with phone is usually cheaper than buying sim-free plus sim-only package.

2) Money has time value, spending £200 over two years is cheaper than spending £200 today.

3) Cashflow, buying today means paying with today's income. Contract today means paying out of next two year's income. Think of it as buying a phone with financing with a very low implicit interest rate (might even be negative where 1) is true).

[TheBigM]

@hamigo, do whichever one works out cheapest for you. Compare outright purchase plus plan costs to the contract cost.

I've done contracts, I've bought sim-free, I've done sim-only contracts, 30-day sim-only, payg, cashback contracts.

Just whatever works out cheapest for you.

[call100]

Originally Posted by TheBigM

Several reasons:

1) A contract with phone is usually cheaper than buying sim-free plus sim-only package.

2) Money has time value, spending £200 over two years is cheaper than spending £200 today.

3) Cashflow, buying today means paying with today's income. Contract today means paying out of next two year's income. Think of it as buying a phone with financing with a very low implicit interest rate (might even be negative where 1) is true).

All three points are completely subjective. Not sure 2 is true and as far as 3 is concerned, I wouldn't want any debt that's not necessary....
Fine for yourself maybe, but being tied to a 2 year contract cancels out any perceived or actual savings as far as I'm concerned.

[TheBigM]

1) Is not subjective, you can measure the total cost of any contract or any sim-free + simo equivalent. It depends on your usage needs, the higher the requirement the more likely contract will be cheaper.

2) is a fundamental precept of the entire finance industry globally and of most economies. Would you prefer I gave you £100 tomorrow or in one year's time? Or are you indifferent? Positive interest rates rely on this and inflation is positive anyway.

3) For the last two years, I've bought my phones because I've valued flexibility to switch networks at will. Now, I've signed a simo 12 month contract because my costs will be £100 less for the year.

Whether you prefer flexibility or savings is up to you. I've been on both sides of the fence.

[call100]

I still maintain that it's better to buy outright than enter into a two year contract. What others wish to do is entirely up to them. I'll be happy changing my phone when I want without worrying about I have another 14 months of being tied down.
The flexibility of being able to change tariffs and networks to suit is the best option for me.
I suggest the OP do the maths over the length of the contract, especially on a cheap phone like the ACE, to see what's best for him
As for your £100 offer, it would depend on the strings attached...

[ShaunIOW]

I had this decision to make recently and opted for a contract phone after doing the maths.

The phone I wanted (Sony Xperia P) was £330 to buy sim free, whilst on a 24 month contract it was free @ £20.50pm so the total cost is £492 less £30 cashback through quidco, so £462 over the 2 years, take off the £330 the phone would have cost, and it means the contract part is in effect costing me £132 for the 2 years or £5.50pm and nowhere could I find a SIM only deal for £5.50pm offering 100 anytime mins, unlimited texts, 500Mb internet with tethering, free calls to another Orange number and Sky Sports/ESPN on the phone and if I want another phone during the 2 year period I can buy SIM free and just put this SIM in it.

[Stuart P]

Originally Posted by call100

Q1 Buy outright......Contracts are too long in a fast moving world. I don't understand why people have 2 year contracts if they can afford to buy the phone outright.

100% with this. have not been in a contract for 4+ years now. have had 6+ phones in that time. i'm always able to get the phone i want (completely free of network bloat ) at a time that suits me, not the netowrk.

[alan1302]

Originally Posted by Stuart P

100% with this. have not been in a contract for 4+ years now. have had 6+ phones in that time. i'm always able to get the phone i want (completely free of network bloat ) at a time that suits me, not the netowrk.

Not everyone wants 6 phones over 4 years though - most people are happy with a new phone every couple of years when their contract is up.

A contract can be good or bad depending on your circumstances and what you are looking for.

My wife has a contract and that suits her and I have a SIM only deal and that suits me.

[Stuart P]

Originally Posted by alan1302

Not everyone wants 6 phones over 4 years though

i'm not saying 'everyone' wants 6 phones over 4yrs. it is just my experience.

[nigelbb]

Originally Posted by ShaunIOW

I had this decision to make recently and opted for a contract phone after doing the maths.

The phone I wanted (Sony Xperia P) was £330 to buy sim free, whilst on a 24 month contract it was free @ £20.50pm so the total cost is £492 less £30 cashback through quidco, so £462 over the 2 years, take off the £330 the phone would have cost, and it means the contract part is in effect costing me £132 for the 2 years or £5.50pm and nowhere could I find a SIM only deal for £5.50pm offering 100 anytime mins, unlimited texts, 500Mb internet with tethering, free calls to another Orange number and Sky Sports/ESPN on the phone and if I want another phone during the 2 year period I can buy SIM free and just put this SIM in it.

I did a similar calculation. I was on Three's One Plan SIM-only at £25/month. A brand new 32GB iPhone 4S from Apple costs £599. The same phone on the One Plan for a 24 month contract cost me £149 then £36 per month for 24 months plus an extra £20 to unlock it but I also took advantage of the Quidco offer which gave me £110 cashback. My total cost over two years if I had bought bought an iPhone 4S from Apple would have been £1199 whereas on the deal I opted for the total two year cost is just £923 a saving of £276 or £11.50 per month. I fail to see how in any way I would have been better off buying an unlocked iPhone from Apple.

[call100]

Originally Posted by nigelbb

I did a similar calculation. I was on Three's One Plan SIM-only at £25/month. A brand new 32GB iPhone 4S from Apple costs £599. The same phone on the One Plan for a 24 month contract cost me £149 then £36 per month for 24 months plus an extra £20 to unlock it but I also took advantage of the Quidco offer which gave me £110 cashback. My total cost over two years if I had bought bought an iPhone 4S from Apple would have been £1199 whereas on the deal I opted for the total two year cost is just £923 a saving of £276 or £11.50 per month. I fail to see how in any way I would have been better off buying an unlocked iPhone from Apple.

As someone said it would depend on what your usage would be.. For myself, using your figure for the phone.....iPhone 4S £599 24 Months on GG £240. Total £839. Of course payback earned over the two years exceeds the £240 with little effort so real total cost £599.

For me 2 years tied to anything other than a mortgage would be out of my comfort zone. I don't really care what other people choose to do any more than they care about my choices. Each choice would be dependent on so many factors for each person, there is no correct answer....

[alan1302]

Originally Posted by Stuart P

i'm not saying 'everyone' wants 6 phones over 4yrs. it is just my experience.

I'm not saying everyone wants 6 phones over 4 years either - I am just giving my point of view just like you did.

[hamigo]

Thanks for your interesting opinions, i have only ever had a basic nokia mobile, so it's a big leap for me to an android.

I'll let you know what i eventually opted for, when i have finally decided.

[alanwarwic]

Originally Posted by nigelbb

....would have been £1199 whereas on the deal I opted for the total two year cost is just £923 a saving of £276 ..... I fail to see how in any way I would have been better off buying an unlocked iPhone from Apple.

It surely depends on ones usage and needs.

There is limited shopping around for Apple phones whereas with Samsung £15 a month for a free Galaxy S2 is not unheard of.

[carnivalist]

Originally Posted by call100

All three points are completely subjective. Not sure 2 is true and as far as 3 is concerned, I wouldn't want any debt that's not necessary....
Fine for yourself maybe, but being tied to a 2 year contract cancels out any perceived or actual savings as far as I'm concerned.

2 is true in most circumstances, given that inflation is the more usual condition of a modern economy. However if the economy tanks even further in a certain fashion, deflation is a possibility, which would make buying cheaper than a long term contract. On the other hand, it would also make buying later cheaper than buying now. However if we get to that point, your phone contract will probably be the least of your worries.

[tellygirl]

I was in a similar position where Virgin Media offered me a good deal for my first smartphone at £7.99 a month for the Galaxy Ace for 24 months. As I had not had a smartphone before I was pretty sure I wouldn't want to chop and change for a few years so it suited me.

I'm happy with the Galaxy Ace and the contract as there were so many choices if I was buying one upfront. Maybe when the contract finishes I might buy one in future as I'll have a better idea what I'm looking for.

[Ryan S]

I got my Galaxy S2 free on a £21.50 two year contract, and got £50 cashback through quidco, making the cost over two years £466.

At the time I bought my phone, the best sim only price at the big stores (Expansys, Handtec etc) was £430, just £36 cheaper than the contract cost. There is no way I could get the kind of minutes/texts/internet package I needed for £18 per year.

I guess what I am really saying is that it depends on your usage, and when you buy the phone. If I had bought the phone earlier in its life I would have been better buying outright rather than paying £40 a month for a free phone.

[Ryan S]

Originally Posted by hamigo

Q-3, Is insurance worth it for a mobile phone and where is the best deal.

Depends on the value of the phone and how careful you are with your mobile.

I have never paid for dedicated phone insurance, but I get phone insurance with my bank account,along with travel insurance and DVD rentals. Might be worth checking with your bank, as you may be able to get more while paying the same price you would pay a dedicated mobile insurer.

[BOOTHY2905]

I've been weighing this up for myself when my current Desire HD contract runs out. I'm gonna get a rolling 30 day data contract with a few minutes and text's included for £20.50 a month. Then that way im not tied into a contract and I can buy a new phone every year and the value of my current phone will be higher than waiting for a 2 year contract to expire so the hit on the 2nd phone I buy won't be as much on my wallet.

[rjb101]

Originally Posted by BOOTHY2905

I've been weighing this up for myself when my current Desire HD contract runs out. I'm gonna get a rolling 30 day data contract with a few minutes and text's included for £20.50 a month. Then that way im not tied into a contract and I can buy a new phone every year and the value of my current phone will be higher than waiting for a 2 year contract to expire so the hit on the 2nd phone I buy won't be as much on my wallet.

£ 20.50 a month? That's a bit steep..

[BOOTHY2905]

It's unlimited text and 500 meg data 400 minutes so not too bad. Better than my 40 a month current contract and I can cancel whenever I want.

[alan1302]

Originally Posted by rjb101

£ 20.50 a month? That's a bit steep..

Is it? Depends on what you get.

[nigelbb]

Originally Posted by BOOTHY2905

It's unlimited text and 500 meg data 400 minutes so not too bad. Better than my 40 a month current contract and I can cancel whenever I want.

What network is that as £20.50 is pricey as e.g. Three £15/month 300 minutes, 3000 texts & unlimited data. That's even before someone recommends giffgaff. Personally I wouldn't recommend giffgaff unless it's for a second phone & you really are after a very cheap service .