Cell Phones

Best way to buy/finance unlocked iPhone

  • Last Updated:
  • Nov 19th, 2018 6:45 am
[OP]
Member
Feb 2, 2014
335 posts
234 upvotes
Toronto

Best way to buy/finance unlocked iPhone

I'm going to need to upgrade my phone soon and I wanted to know what the best way is to spread out the cost over time rather than dropping a thousand dollars or more all at once.

Does anyone offer financing that isn't too onerous? Best Buy? Staples? Or is there another way to get the phone? I don't want to change my plan as I have 6GB for $50.
14 replies
Deal Guru
User avatar
Feb 24, 2003
14051 posts
1636 upvotes
Toronto
The cheapest method may be use/open a personal line of credit.
Sr. Member
Mar 24, 2016
501 posts
431 upvotes
scarborough
i think staples also has financing
Deal Expert
User avatar
Nov 28, 2013
15054 posts
5558 upvotes
Oakville
Any in-store financing will almost certainly have insane interest rates. The personal line of credit option is probably the cheapest option.
Lucky Koodo $40/6GB (with $15/10GB add-on) recipient
Deal Addict
Apr 5, 2016
2714 posts
1457 upvotes
Calgary/Vancouver
May I suggest just save up for it or get a cheaper phone? Personal line of credit is like what, 6%+ interest?

Signing up a 2 year contract might even be a better deal.
Current Fido customer.
Ex Koodo customer.
[OP]
Member
Feb 2, 2014
335 posts
234 upvotes
Toronto
bomber17 wrote:
Nov 8th, 2018 9:26 pm
May I suggest just save up for it or get a cheaper phone? Personal line of credit is like what, 6%+ interest?

Signing up a 2 year contract might even be a better deal.
It's more a question of just not wanting to drop the ~$1200 all at once. If, for example, it's possible to spread it out over 12 months with a $70 cost at Best Buy, then that seems preferable to me. It's not that I can't technically afford it; I have the money. It's that when a phone costs almost as much as my monthly rent, psychologically, I'd rather spread it out.
Deal Expert
User avatar
Nov 28, 2013
15054 posts
5558 upvotes
Oakville
bomber17 wrote:
Nov 8th, 2018 9:26 pm
May I suggest just save up for it or get a cheaper phone? Personal line of credit is like what, 6%+ interest?

Signing up a 2 year contract might even be a better deal.
2 year contract would require changing plans, and the OP is on $6GB at $50 a month right now. Since OP doesn't want to put down a huge chunk of money upfront, you'd be looking at something like a tab extra large plan with Koodo - which would cost $95 a month for 7GB here in Ontario, or $90 a month if OP could drop down to 5GB. That's an extra $480 a year, minimum. 6% interest is looking pretty good compared to that. :P
tjindersingh wrote:
Nov 8th, 2018 10:54 pm
It's more a question of just not wanting to drop the ~$1200 all at once. If, for example, it's possible to spread it out over 12 months with a $70 cost at Best Buy, then that seems preferable to me. It's not that I can't technically afford it; I have the money. It's that when a phone costs almost as much as my monthly rent, psychologically, I'd rather spread it out.
It definitely won't be as low as $70. Interest will be at LEAST 20%, so you'd be paying around $134 in interest according to this loan calculator: https://www.tdcanadatrust.com/loanpayme ... rm?lang=en

I'm guessing interest rates for in-store financing would be closer to 22%, which would put your total cost of borrowing up to nearly $150. Vs $40 in interest with a 6% personal line of credit.
Lucky Koodo $40/6GB (with $15/10GB add-on) recipient
Member
Aug 18, 2018
452 posts
252 upvotes
SFO <==> YYZ
tjindersingh wrote:
Nov 8th, 2018 10:54 pm
It's more a question of just not wanting to drop the ~$1200 all at once. If, for example, it's possible to spread it out over 12 months with a $70 cost at Best Buy, then that seems preferable to me. It's not that I can't technically afford it; I have the money. It's that when a phone costs almost as much as my monthly rent, psychologically, I'd rather spread it out.
But what if I told you that spreading it out so you'll feel better psychologically in the short run will end up costing you $200 extra over 2 years?
GV/Hangouts + T-Mobile $10/2GB Simple Choice = Win
[OP]
Member
Feb 2, 2014
335 posts
234 upvotes
Toronto
wearysky wrote:
Nov 9th, 2018 9:59 am
2 year contract would require changing plans, and the OP is on $6GB at $50 a month right now. Since OP doesn't want to put down a huge chunk of money upfront, you'd be looking at something like a tab extra large plan with Koodo - which would cost $95 a month for 7GB here in Ontario, or $90 a month if OP could drop down to 5GB. That's an extra $480 a year, minimum. 6% interest is looking pretty good compared to that. :P



It definitely won't be as low as $70. Interest will be at LEAST 20%, so you'd be paying around $134 in interest according to this loan calculator: https://www.tdcanadatrust.com/loanpayme ... rm?lang=en

I'm guessing interest rates for in-store financing would be closer to 22%, which would put your total cost of borrowing up to nearly $150. Vs $40 in interest with a 6% personal line of credit.
The $70 figure was just Best Buy's "admin" charge for 12 mos. no interest financing... but I don't know if Best Buy sell unlocked iPhones or if you can use the Best Buy card to finance cell unlocked phones. Which is why I made the thread: to find out what the most reasonable way to buy a new, high-end phone might be.
Deal Fanatic
User avatar
Jun 19, 2009
5024 posts
898 upvotes
Scarborough
If you can get one of those special 0% financing credit card loans for 12 months then that would be cheapest type of loan lol (but you would have to pay it back all in 1 shot or face extreme interest charges)

You're lucky enough to be able to afford a 1k smartphone (even if you don't want to pay that much and I agree with you.) These financing options are mainly for those who want expensive phones but don't have the means (or cash flow) to support it. I'm not going to knock on their life choices, but just remember there's no free lunch - borrowing money has a cost that not many companies will give away for free. Like someone else said, you will probably pay more in interest charges + overall increased financing costs over 2 years than if you just bought outright. Not to mention in 2 years from now, you'll likely be wanting the next big smartphone that will (likely) cost even more in today's dollars.
Deal Expert
User avatar
Nov 28, 2013
15054 posts
5558 upvotes
Oakville
tjindersingh wrote:
Nov 9th, 2018 1:26 pm
The $70 figure was just Best Buy's "admin" charge for 12 mos. no interest financing... but I don't know if Best Buy sell unlocked iPhones or if you can use the Best Buy card to finance cell unlocked phones. Which is why I made the thread: to find out what the most reasonable way to buy a new, high-end phone might be.
All phones are sold unlocked now, but I think Apple is the only one that sells new ones without a mobile plan attached. You can buy without a tab from Koodo at full price, on a plan, and cancel the plan immediately at zero cost. I don't know if Best Buy would allow you to finance on that purchase, but if they can, that $70 admin fee works out to the equivalent of roughly a 10.5% interest rate. Still cheaper to get a personal line of credit and pay with that, BUT that's only if you value your time at zero dollars per hour. The time to set up the line of credit would be a factor for me, and the 30 bucks or so savings would probably not be worth the hassle.
Lucky Koodo $40/6GB (with $15/10GB add-on) recipient
Member
Apr 13, 2005
371 posts
179 upvotes
Perhaps look at something cheaper in the interim until you can afford to buy a $1300+ phone?
Member
Aug 18, 2018
452 posts
252 upvotes
SFO <==> YYZ
OP's issue is psychological and not financial as stated in post #6.

My only advice at this point is: never finance a depreciating asset unless you can get 0% financing, OR you plan on investing that sum of money and the ROI is guaranteed to be higher than whatever APR you'll be paying. (yes I'm the guy that advocates paying for cars in cash Grinning Face With Smiling Eyes)
GV/Hangouts + T-Mobile $10/2GB Simple Choice = Win
Penalty Box
Jan 15, 2006
10228 posts
5130 upvotes
Richmond Hill
Apple offers financing no idea what the details are. That said psychologically I feel better giving phone carriers as little as possible. I dropped $4000 for the iPhone XS for my wife and I and I feel great about it buying it direct from Apple LOL
Jr. Member
Dec 18, 2017
177 posts
65 upvotes
Best Buy has a 24 month 0 interest cell phone finance plan for a $40 admin fee. Not sure if it applies in this particular situation though, as I haven't looked closer into it other than the quick paragraph on their financing page.

Top