Do you buy your iPhones outright or wait for contract renewal?

Ledsteplin

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Oct 2, 2013
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Contract! My wife just upgraded from a puny LG Enlighten to a 32 gb iPhone 5c. She got it free with Verizon's 2 yr contract. It's hard to beat free!


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AvalancheRyder

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My question is, are people really buying iPhones on eBay on launch day for $800+? Does that take into account sales tax on the phones from the Apple Store, shipping fees, eBay & PayPal fees?

I'm in New Jersey, USA and sales tax is 7%. So add that to eBay & PayPal fees of 12% combined, and you're losing almost 20% on every device before you factor in shipping. I tried that scheme before and realized I wasn't really saving as much as I thought.

Figure, if you buy a new iPhone for $599.99 + 7% tax, your total is $641.99. Then you sell it for $800, eBay takes $72 (9%), PayPal takes $24 (3%), and you cover shipping for say $15, then deduct the $641.99 for the iPhone, you wind up with a profit of only $47. Not to mention, on the old iPhone you sell for $400, eBay takes $36, PayPal takes $12, and you cover shipping for $15 again, you wind up only getting $337. Subtract $337 and the $47 profit on the other iPhone from your new iPhone price of $641.99, and your upgrade costs $257.99.

If I'm missing something, let me know. I'd love a way to make this viable myself.
 

phonejunky

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I use to buy my iPhone outright every year. However after the 4S I began going on craigslist and finding my new renewal. This is cheaper and has never failed me yet.
 

jsing2010

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I used to wait until my upgrade but since switching to the iPhone I buy outright every year almost


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Bradley Spence

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My question is, are people really buying iPhones on eBay on launch day for $800+? Does that take into account sales tax on the phones from the Apple Store, shipping fees, eBay & PayPal fees?

I'm in New Jersey, USA and sales tax is 7%. So add that to eBay & PayPal fees of 12% combined, and you're losing almost 20% on every device before you factor in shipping. I tried that scheme before and realized I wasn't really saving as much as I thought.

Figure, if you buy a new iPhone for $599.99 + 7% tax, your total is $641.99. Then you sell it for $800, eBay takes $72 (9%), PayPal takes $24 (3%), and you cover shipping for say $15, then deduct the $641.99 for the iPhone, you wind up with a profit of only $47. Not to mention, on the old iPhone you sell for $400, eBay takes $36, PayPal takes $12, and you cover shipping for $15 again, you wind up only getting $337. Subtract $337 and the $47 profit on the other iPhone from your new iPhone price of $641.99, and your upgrade costs $257.99.

If I'm missing something, let me know. I'd love a way to make this viable myself.

I've never had to worry about the sales tax thing (maybe cause I'm in Canada?) but it is worth selling on eBay if you are willing to ship it oversees. If you look at closed auctions, the ones that ship worldwide sell for a lot higher.
 

thatgirl87

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I normally wait until my contract is ready to be renewed, or use a family member's eligible upgrade. With the 5S, however, I bought mine outright. I saved up money over the summer when my phone got stolen and bought it on launch day.


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EmceeGeek

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I always buy outright. I can't remember the last time I bought a subsidized phone.


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hooplvr

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So does buying outright make a difference in what you pay a month on your service plan?


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joemd60

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I've never once had a contract. I go through way too many phones for this to benefit me at all. I have financed one phone, I regret this decision and won't do it again. I don't like having higher bills due to paying off a phone. If I really want it, I'll sell what I have and put money saved to cover the difference.

Though I'll likely not be buying another android that costs $800 again. Unlike the iPhone, these depreciate in mere minutes.


?Sent from the colored one using Tapatalk?

Agreed, that's what I did when I bought my 5C in October.
I have since paid it off, but regret dropping that kind of money on a phone.
 

metllicamilitia

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Dec 25, 2011
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I always used to do contract, but I bought my iPhone 5 outright, I'm debating whether or not to renew my contract or continue to purchase my phones outright.


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Les74

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I do upgrades only because I don't usually have $800 laying around to drop on a phone.


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SprSynJn

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I usually wait for the renewal period, but I have bought a phone early and paid the fee. That was when I had an Android phone and couldn't stand using any longer. 😜
 

CJoel

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I'm debating whether I should start buying outright the phones myself. Most likely I will since I do not want to be tied to another 2 year contract and have to pay ETF.
 

jarofclay73

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I can't see upgrading faster than two years. I buy a decent amount of cases and accessories they better last at least two years. I feel comfortable on the non-S years. I used to think that the S years were mostly incremental. But, the 5s changed all of that with Touch ID and the 64-bit A7.
 

Almeuit

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I buy all my phones outright.. I like knowing I have no strings attached :p.

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rellyrellz

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Both. Recently either outright or eBay. This October will be the first time I fully completed a two year contract. Not with the same phone though lol. I will most likely purchase the iPhone 6 with a new two year contract to save money.
 

ame

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I've done both. I will not do that "next" nonsense. Either the 2 year upgrade or full price and sell my current. My husband needs a new phone whether he wants it or not. So this year I'm sure I'll be outright.
 

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