Now that the highly anticipated iPhone 6 and 6 plus have been announced, a lot of people are looking to buy one and the queues outside the Apple stores seem longer than ever. Whilst many people may be comparing contract costs there are far cheaper ways to buy the latest iPhone and we have compiled them all in this article.
The decision of whether to buy the iPhone 6 straight up or to get it on contract can be a difficult one for many people. The cheapest option in the short-term would be to go for a contract handset because you will not be faced with a massive cost upfront. However, those who opt for the SIM-free option will be paying less than those on contract. This is due to the fact that with the SIM-free buying option, customers will be able to shop around for the best tariff available, whilst a contract over a two year period works out to be more expensive in the long run. If you compare an example of a SIM only deal with that of a contract, the price differences show more clearly.
For example, under the assumption that you could get the iPhone 6 on a £38 ($ 61) per month two year contract (with Three), it would amount to £1,024 ($ 1,652) which means that to get it on contract it works out as £369 ($ 595) more expensive than Three’s SIM-only deal over the 24 month period.
It should be kept in mind that you can only benefit from SIM only contracts if you can afford to pay for the handset upfront, which many people think that they can’t. Apple have a financing option that is now available, whereby customers can buy direct from them and pay a monthly fee with interest (around 14.9% APR) to pay off the handset over a period of about 24 months which works out a bit cheaper. However if you find a 0% credit card with a long interest free period and spread the cost over the interest free period, you can then buy the handset for the SIM free price and not have to pay any extra in interest because it is all paid within the interest free period. The longest time scale for an interest free period is 20 months.
To buy an iPhone 6 with 128gb using the Apple financing option (over a period of 24 months) will cost a total of £804.74 ($ 1298), whilst if you were to buy the same 128gb handset with a 0% card with 20 months interest free (this is the longest interest free period currently available), the total amounts to just £699.00 ($ 1,127), which means that by spreading the cost you manage to save a total of £105.74 ($ 170,63).
The iPhone 6 plus is similar as you will be saving £119.36 ($ 192,61), if you choose to buy the handset using the 0% credit card deal over the Apple financing deal which totals £908.36 ($ 1,466) for the iPhone 6 plus with 128gb.
Although monthly payments will be slightly more for the 20 months on interest free credit card than on Apple finance, you will be paying it off over a shorter time period and the overall saving is substantial. It is amazing just how much people can save if they take a little extra time to look at the alternatives to just the best monthly handset contract. Once again, doing a little research can save you big bucks.