Should you buy your phone outright or on contract?

You have two options when perusing the web for a new phone. The most popular choice is to get a contract that involves paying for both the service and the handset. But another increasingly popular way is to buy your handset outright and choose a SIM only network.

Buying your phone outright vs contract can save you a lot of money in the long run. It gives you more freedom, flexibility, and ownership — a valuable commodity these days. But there are good reasons to buy your phone on contract too, so make sure you read both sides.

Let’s look at the three main reasons to buy your phone outright

1. It will work out cheaper

Buying your handset outright can potentially save you hundreds of pounds. With the surge of SIM only deals, buying a smartphone and going SIM only has become the choice for savvy bargain hunters looking to save money. More money = more…

So why exactly does it work out cheaper?

There are a few reasons:

  1. You can adjust to a plan that isn’t beyond your requirements
  2. You won’t get overcharged like with some mobile phone contracts
  3. With a SIM only rolling contract, you can just switch to the best deal
  4. Refurbished, second-hand or previous generation phones can come at heavily discounted prices

Combine them all and you have the secret recipe. People will think you’re just jammy!

How much money can you save going SIM only?

Let’s take a look at some examples based on one of the latest handsets. At the time of writing this, you can buy a Samsung Galaxy S10 128GB as cheap as £512.99 brand new. We’ll use this in our comparison and although it may be a time-limited deal,you will see these price cuts all the time if you look around.

Samsung S10 Unlimited Data

Upfront: £79

Per month: £45

Total (24m): £1,159

Samsung S10 Unlimited Data*

Upfront: £19

Per month: £55

Total (24m): £1,339

Samsung S10 + Unlimited SIM

Upfront: £512.99

Per month: £10 for 6mo then £20

Total (24m): £932.99