Shopping Discussion

Buying a phone and cancelling right away, what has to be taken into consideration?

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  • Dec 21st, 2015 6:20 pm
[OP]
Newbie
Apr 17, 2015
83 posts
34 upvotes
Montreal, QC

Buying a phone and cancelling right away, what has to be taken into consideration?

Hi everyone,

I'm sorry if this particular topic already exists, but it's a process I see a lot mentioned in Mobile related posts but is still unclear for me.

I'm looking at potentially buying the Google Nexus 5X and Videotron stores (in Quebec) have some stocks BUT I have a great deal with Fido and I don't want to cancel yet but rather during spring when contract is over.

From my understanding and chat with Videotron :

1) They will only sell the phone if I take a line with them, even if I pay full price Retail price ( see pricing : http://www.videotron.com/residential/mo ... stom-tab-0)

2) Reading cellular phone cancelling policy (http://www.opc.gouv.qc.ca/en/consumer/g ... ellulaire/ ) it seems like if you buy a phone WITHOUT a discount, you'll end up with a 50$ penalty fee to cancel line. However, it looks like if you GOT a discount on the phone, the maximum cancellation fee will be the difference between retail price and discounted price, which would mean you end up paying the full retail price, with no other penalty.

3) Now, if I register a new line today, can I cancel the line right away ?
Do I have to wait for at least a month (aka pay 65$+ for 1 month even if I dont use the line ) ?
Are there other rules that will make them ask me for other cancellation fees ?


I understand there is often a question of Gift card given by shops like Costco , Walmart or Bestbuy, but here I'm really talking about paying full retail price with no freebie.


Thanks!
20 replies
Deal Addict
Apr 24, 2007
2257 posts
511 upvotes
I am confused. Not sure what I am missing, but what are you trying to do here?
Deal Guru
User avatar
Oct 14, 2003
14225 posts
1109 upvotes
Why not buy it directly from google and then you don't even have to deal with another provider?
Science
is the new
rock 'n'
roll.
Deal Expert
Jan 7, 2002
17816 posts
10176 upvotes
Waterloo, ON
I'm also confused. Do you want to stay with Fido? If so just buy the phone directly from Google. Shipping is free. The phone is unlocked, so just take the SIM out of your current phone and put it in the 5X. There's no need even to notify Fido that you've changed phones. If in the spring you want to cancel with Fido and change carriers then do it. The phone won't be an issue.
veni, vidi, Visa
Deal Fanatic
Sep 16, 2004
8560 posts
1441 upvotes
Toronto
OP probably wants to take advantage of phone deal priced lower than google.

A condition is you take out a contract with the service provider selling the phone in order to get it for the hot price.

He wants to get the phone and then cancel the contract but keep the phone like people do with Costco,Walmart,Bestbuy etc

Then unlock and use on his current fido account.

I saw people were doing this with the Motorola phones from Chatr and Fido a couple months ago but these were for prepaid service.
Deal Expert
Jan 7, 2002
17816 posts
10176 upvotes
Waterloo, ON
gh05t wrote: OP probably wants to take advantage of phone deal priced lower than google. A condition is you take out a contract with the service provider selling the phone in order to get it for the hot price.
I got confused by the "They will only sell the phone if I take a line with them, even if I pay full price Retail price" which implied that he was willing to pay the full unsubsidized price.
Then unlock and use on his current fido account.
AFAIK all Google Nexus phones, even ones bought through carriers, are unlocked and unbranded. That was certainly the case with the N5 I bought a year ago from Koodo when they had a Christmas promo.

That Koodo deal made sense (and a huge RFD thread) because we were able to cancel the contract after one month without any penalties. So even with the one month of service the net cost for an N5 was only about $200. Koodo then changed their terms to require a longer minimum contract. I suspect by now all the carriers have amended their contracts to thwart people like us ;)
veni, vidi, Visa
[OP]
Newbie
Apr 17, 2015
83 posts
34 upvotes
Montreal, QC
Hi everyone,

I'm sorry if my original post is confusing, I'll try to be clear by simplifying. Forget the Nexus 5X for a second, the question is to understand if one can purchase a phone from a carrier and cancel the monthly plan right away ?

From what I read, there is a legal difference between purchasing the phone at full retail price (ex: 500$ and pick whichever plan you want) and with a carrier discount (ex: pay 100$ but get a monthly plan of at least 75$+) . In the case of full retail price (500$), you'll have to pay at least 50$ for early termination so total cost of acquisition = 550$. If you got a discount, you'll only need to pay the remaining phone balance so total cost of acquisition = 100 + 400$ of remaining phone balance = 500$.


Question 1 is to confirm if my reading is correct and there is a legal difference between the 2 options, purchasing a phone with a discount would be the cheapest option (500$).

Question 2: If you do this, do you have to still pay the price of the 1st month? Which means cost of acquisition goes up by whatever monthly $$ this plan is. (ex: 500$+75$ = 575$).

Question 3: Is there any other factor that one should think about ?


Now, if we get back to Nexus 5X for a second, I'm having a problem with Google store not showing stock and switching to USD pricing. I even tried to clear cache and open a brand new Gmail account all in Canada: no luck. Plus the phone would be shipped so a few days of delay and a visit to the local post office, comparing to just go to a Videotron store downtown that has stock on hand.


Thanks!
[OP]
Newbie
Apr 17, 2015
83 posts
34 upvotes
Montreal, QC
bylo wrote: Koodo then changed their terms to require a longer minimum contract. I suspect by now all the carriers have amended their contracts to thwart people like us ;)
That is exactly one of the things I'm looking for!! Thanks
[OP]
Newbie
Apr 17, 2015
83 posts
34 upvotes
Montreal, QC
Alright so just an FYI, I went forward with this experiment and got the Nexus 5X from Videotron today.

I'm calling tomorrow to cancel the 30$ plan and will keep you updated with the outcome.

I hope this experiment can give more info to others thinking about doing the same, I have already noted some unexpected costs that I'll be telling you about.

Cheers
Deal Addict
Nov 2, 2011
2063 posts
442 upvotes
Vancouver
Still don't understand your goal here OP.

Google.ca has Nexus 5X available for $500+taxes, free shipping. Unless Google is restricting you to buy since you are in Quebec.

Are you getting a really good deal going with Videotron, even with the cancellation fees, when compared to Google? Because when I checked on Videotron's site, the no-term price for the 5X is $500.
Deal Addict
User avatar
Jan 3, 2014
2590 posts
1659 upvotes
Vancouver(ish)
dealHub wrote: I'm sorry if my original post is confusing, I'll try to be clear by simplifying. Forget the Nexus 5X for a second, the question is to understand if one can purchase a phone from a carrier and cancel the monthly plan right away ?
What did the phone company say when you asked them?
Proud RFD member since January 31, 2007. Feel free to add 3,034 to my post count.
[OP]
Newbie
Apr 17, 2015
83 posts
34 upvotes
Montreal, QC
Hey guys,

Ok so I successfully cancelled the line with Videotron. As planned, the only resignation fee I need to pay is the balance on the phone (50$).

Thus, as of right now it appears that I was able to get the phone on the spot at Videotron store, paying almost only the retail price. Indeed, I still had to pay 10$ to Videotron for a SIM Card. However I can keep it, if ever I switch to Videotron when my Fido contract is over.

Again, please see this post as an example of buying a phone to a provider that maybe your current provider doesn't have in stock. I'm thinking a lot about Koodoo which often has great prices but poor phone choices.


If ever I'm charged for something else, I'll update this post.

Thanks
Deal Addict
Jul 2, 2006
1314 posts
429 upvotes
Toronto
Don't they pull your credit report when you open a line as a new customer?
[OP]
Newbie
Apr 17, 2015
83 posts
34 upvotes
Montreal, QC
Hi bst,

Good question, I don't know if they do that if you already are a customer with them for other services (TV and Internet in my case).

Any idea how to know it?
Deal Expert
Jan 7, 2002
17816 posts
10176 upvotes
Waterloo, ON
dealHub wrote: Any idea how to know it?
You can ask them. AFAIK they're required to get your permission(*) if they want to do a "hard" check (one that might affect your credit rating.) Your other option is to check your credit rating, however, this may incur a cost.

Keep in mind that even if they do a hard check, if you have a good credit rating to begin with and you don't make many credit applications, that one check won't reduce your rating significantly. OTOH if you've applied for a couple of credit cards and a car loan in the past year or two then this additional check may well the rate you can get on some other loan like a home mortgage.

Google is a great source of info on this subject. See e.g. Can credit checks cramp your credit rating?

(*) Added: Q What is an inquiry?
When you apply for credit, companies may request your consent to access your credit report to assist in their decision.* Each time they request your report for credit-related purposes, a ["hard"] inquiry is listed on your file. These inquiries will be disclosed to other companies viewing your credit file and may impact your credit score.*
This says "may." But keep in mind that it's from a credit reporting agency whose customers are the companies who generate their revenues, so they may not want to embarrass them. And since you're in QC there may be stronger legislation than in TROC.
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