MEMPHIS, Tenn. — The newest iPhone finally made its debut, and in true Apple fashion, some folks love it while others hate it.
“One of my brothers is actually already trying to sell his old one to get a new one,” said Bethany Hogg, who was carrying a previous generation iPhone when we spoke to her.
“Got too much, other things to worry about than what Apple’s doing,” said Austin Ricks, who bragged about the functionality and durability of his Galaxy Note.
The iPhone 6 starts at $199. The starting point for the iPhone 6 Plus is $299.
However, as carriers compete for consumers’ dollars, there are some new ways to save.
“Instead of an upgrade, you don’t have to put anything down,” Kristine Roth said of how she scored her Galaxy S5.
Roth added, “I did not have to sign a contract or anything like that. I have been able to make payments because it’s a little more affordable that way.”
So just how much money do you save by ditching your contract?
Most carriers now offer the option of getting a new phone with no money down, no contract, and simply paying for the device in installments.
“So my bill’s maybe $10, $15 more a month until the phone’s paid off,” Roth said.
Savings site Wallet Hub recently created a calculator for users to compare cellphone prices.
The On Your Side Investigators went to a major carrier’s website, added an iPhone 6 to the cart with a plan that offered text, talk and 2GB of data per month.
According to the calculator, a two-year-contract plan still saved the most, followed by an installment plan, then buying the device outright. The third option did reveal much cheaper monthly payments.
No matter what the initial out-of-pocket expense was, we also learned that after buying the phone and paying the bill every month, the new iPhone ends up costing a whopping $2,000 over a two-year period!
All of these prices can change based on factors such as your carrier, whether you’re an existing customer, and which data plan you select. There are other scenarios where abandoning the contract and paying for the phone in installments does come out cheaper.
Furthermore, if you can somehow slash the initial, out-of-pocket expense of the phone (with no contract, it’s more than $600), you’ll really come out a winner, paying everything up front with a lower monthly bill.
Keep in mind, if you select an installment plan to pay for the device (with no contract) and you decide to walk away, you still owe the balance of the phone.
Other ways to save:
Discounts
Retail discounts-Several retailers are offering discounts on the device itself.
- Walmart-Slashing the retail price of the iPhone by $20, plus throwing in gift cards for pre-orders
- Sam’s Club-Offering the iPhone 6 for $177 starting Friday, September 19th
- Costco-Discounting new Apple products by up to 10 percent for members
Employer discounts-Check with your carrier to see if it has a deal with your employer to offer discounts. Discounts vary and could take up to 20 percent off a monthly bill. We found this list at Brad’s Deals.
Credits
Trade in your old smart phone to get credit toward a new purchase. Walmart has a trade-in value calculator.
Store Savings
Buying a phone from a traditional retailer versus a carrier could also result in automatic savings. Unless otherwise specified, you could use store coupons, gift cards, etc toward your purchase.