Should You Buy Your Phone Outright or Get It on a Plan?
Upgrading your mobile? One of the biggest decisions Aussies face is whether to buy a phone outright or bundle it with a plan from a major telco like Telstra, Optus or Vodafone. While plans can seem convenient, buying your phone outright is often the smarter move, especially if saving money is your goal.
Why Buying Outright Can Save You Hundreds
1. You Can Snag Sale Prices
When you buy outright, you’re free to shop around for the best deal including big sales like EOFY, Black Friday or manufacturer discounts. These savings aren’t passed on when you buy through a telco, as most plans charge the full retail price broken into monthly instalments.
2. You’re Not Locked Into an Expensive Plan
Telcos often offer cheaper monthly handset payments in exchange for bundling with a higher cost plan. But that means you’re stuck paying more for your mobile and data for the next 24 to 36 months. Buying outright gives you freedom to switch to a more affordable SIM only plan from a smaller provider, often saving you hundreds or thousands each year.
Let’s do the maths.
Senario
Option 1 - $1399 Iphone 16 outright + $199 365 day plan = $1996 over 36 months
Option 2 - Same phone with Cheapest Optus plan = $93.86 per month or $3378.96 over 36 months
In the above situation, going with the first option saves you $1382 over 3 years.
What About Refurbished Phones?
A great middle ground is buying a refurbished phone. These are often ex demo, traded in or returned phones that have been tested and come with a limited warranty, usually 3 to 6 months. The upside? You can get a near new device for a fraction of the cost.
The downside? Refurbished phones may have had screen replacements or water damage repairs. This can affect things like waterproofing, wireless charging or long term durability. It’s important to buy from a reputable local seller that offers a warranty and clear device condition grading. You are sometimes better waiting for a sale and combining this with a discounted gift card to get a new phone for a similar price to a refurbished option.
https://reebelo.com.au/ Reebelo is the website I have previously got refurbished phones from.
Tip: Use Discounted Gift Cards for Even More Savings
Did you know you can stack savings by using discounted gift cards from services like ShopBack or Woolworths Everyday Rewards? Buy gift cards at 5 to 10 percent off and use them at retailers like JB Hi Fi, The Good Guys or Officeworks to get even more off your phone purchase.
A good place to see the latest gift card deals is on this sub Reddit www.reddit.com/r/AusGiftCardDeals/
The Bottom Line
Buying your phone outright puts the power and savings back in your hands. You avoid overpriced plans, get flexibility with providers and can take advantage of discounts that telcos don’t offer.
If you’re not sure where to start or want help choosing a SIM only mobile plan, Churna can help. We compare hundreds of providers and help you find the best value option, no confusion, no call centres, and no stress.
