Archive for October 2nd, 2014

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Making the iPhone 6 more affordable

iphone_6_pricesApple have done it again and have brought users a brand new, larger, handset, however, the only problem is how you make purchasing the iPhone 6 more affordable? As with the launch of any new piece of tech, the cost is substantially high and as such people franticly shop around for the best contract deals available. The only thing is, while you may be able to save the odd pound here and there by researching which network and tariff is best for your budget, there are other ways to make bigger savings to make the cost of the latest handset more affordable.

There is no denying that selecting a contract iPhone 6 or 6 plus will be the cheapest short term option, you don’t have to pay too much up front and you get a gorgeous new phone. Sadly, however, the costs start to sting your bank account when your monthly contract payments go out – new phones are notorious for being quite pricey when selecting contracts, so long term you’ll end out paying a lot more than you expected or would like.

Another option, and probably one of the cheaper in the long run is to choose a SIM only contract. Although this means you pay for the handset upfront, you benefit from being able to move freely between networks and deals without having to deal with the confines of a locked contract. The issue with this decision is most people don’t make it because they feel they can’t afford to spend that much money in one go. If that sounds like where you stumble when purchasing the new iPhone you could turn to Apple’s finance payment plan to help you make that handset obtainable.

The finance package with Apple means you buy directly from the company and then pay back what you owe, with interest, over a select period of months, the most common being 24 months. However, while it definitely sounds a lot more money savvy, you do have an APR rate of 14.9% added onto your repayments, which obviously means you end up paying more than what the handset is worth. This is where you might want to consider a 0% credit card instead, as this option means you can enjoy a long interest free period (maximum of 20 months), and only pay for the handset with no added extras.

By breaking it down and comparing the two options, the latter is more financially sound. When you buy an iPhone 6 (16gb) via Apple finance, you’ll pay £620.54 with repayment costs of £25.86 monthly for 24 months, however, when you buy an iPhone 6 via an interest free credit card, you’ll pay the SIM-free cost of £539.00 and pay back £26.95 monthly for 20 months. Despite the fact that you’ll pay out a little bit more each month if you choose the credit card option, you pay off the handset sooner and essentially make a saving of £81.54; and the saving for handsets with more storage is even greater.

As expected with a new phone, it’s all about shopping around for the best deal, however, that doesn’t restrict you to just what contracts are on offer in the high-street stores. There are many other avenues to research and consider before making a final decision, and weighing them up first and making the right decision can save you money in the long term.

Posted in: Editorial, Phones