Is Splurging on a Phone Contract with a Built-in Smartphone Worth Your Bucks? Avoiding the Trap of Overpricing
Is a mobile phone contract with a smartphone more of an expensive investment or an incredible bargain?
No more debating whether to snag a phone contract with a built-in smartphone or keep 'em apart - we've got you covered, mate! It truly boils down to some basic arithmetic, but don't fret, it's simpler than it sounds.
Now, those enticing phone plans that tag along with a smartphone, hyped as a steal? As charming as they may seem, don't let the hype blindside ya. Before diving headfirst into a bundle deal, do the math first, ensuring a separate plan without a smartphone and purchasing the best-priced device on the open market won't leave you penniless.
Consumer gurus at "Finanztip" suggest using a benchmark to set your calculations in motion: if the monthly contract costs without a smartphone exceed nine euros, it's a non-starter, experts warn.
Smart Thinking: Extra Cash for Your Old Phone
Now, the value here is based upon the no-frills, all-net flat-rate plans suggested by "Finanztip." These plans usually cost between five and nine euros on a monthly basis, and cater to a variety of data needs, from 1 GB (for light usage) to a whopping 35 GB (for heavy users). "Finanztip" recommends keeping your contract costs no higher than those of these plans.
The Three-Step Guide to Crunching the Numbers:
- Determine the average monthly cost of the combo offer by multiplying the monthly basic fee by 24 (the standard contract duration in months), adding all additional costs like setup fees, one-time payments, or delivery, subtracting any discounts like a switching bonus, and then dividing the total by 24. Many comparison portals, such as "Check24.de," "Teltarif.de," or "Verivox.de," already show the average monthly cost.
- Scout around the cheapest market price for the smartphone, using price comparison websites like "Geizhals.de," "Günstiger.de," or "Idealo.de." Then, divide the entire price of the smartphone (with delivery included) by 24.
- Subtract the calculated smartphone value (from Step 2) from the average monthly cost (from Step 1).
Swapping to a New Phone Contract, Simplified:
Evaluating the Effective Price of Your Contract Without a Smartphone:
The result (from Step 3) gives you the effective monthly price of your contract sans smartphone. "Finanztip" advises evaluating this result as follows:
- If it's over nine euros, you're generally better off buying separately.
- A figure between five and nine euros is acceptable.
- Under five euros is a great deal.
- If it's zero euros or less, you score a free plan (whoohoo!).
- A negative result means you're actually paying less over the contract period for the built-in phone vs. buying separately, but this is quite uncommon.
Breaking Free at the End of the Minimum Contract Period:
Remember, decent combo deals are an option if you need a new smartphone. However, keep in mind to cancel the plan once you've fulfilled the two-year minimum contract term and switch to a more budget-friendly provider. Holding on could cost you more dough in the long run.
Source: ntv.de, awi/dpa
- Smartphones
- Phone Contracts
- Cost-Effective Strategies
- Consumers
- Network Coverage
- Customer Service Quality
- Additional Plan Features
- Switching Providers
- 5G Technology
- After considering cost-effective strategies from 'Finanztip', it's recommended that consumers determine the average monthly cost of a phone contract without a built-in smartphone by following a three-step guide.
- This guide involves calculating the effective monthly price of the contract sans smartphone and evaluating the result based on a scale: over nine euros and you're better off buying separately, five to nine euros is acceptable, under five euros is a great deal, zero euros or less means you have a free plan, and a negative result means you're actually paying less over the contract period for the built-in phone compared to buying separately.
- To calculate the effective monthly price, consumers should compare the average monthly cost of the 'phone contract' without a smartphone to the monthly market price of the smartphone itself.
- It's crucial for consumers to remember that, while decent combo deals for smartphones are available, they should consider canceling these plans once they've fulfilled the minimum contract term and switch to a more budget-friendly provider to avoid unneeded long-term costs.
