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Should You Buy Or Lease Your Next Smartphone?

September 7, 2017

Apple is planning to announce the latest versions of the iPhone next Tuesday with sales slated to begin sometime this month, you might be considering an upgrade. But things have changed at the cell phone store.  It's nearly impossible to do the whole two-year contract for a greatly reduced price on a newly released phone.  Your two options are to buy the phone outright, however with price tags of $700 and higher for the iPhone and over $900 for the Samsung Galaxy Note 8, that's a tough sale. Or you can lease to own.  That's where you pay full price for the phone over a two, three or four year program and generally interest free.  On first look it appears the payment plan is the way to go. Before you sign the contract, let's take a look at your history of upgrading phones.  In short, if you are one who likes to hang on to phones for a long time and are always looking for the best deal, then you should bite the bullet and pay for the phone outright. The best thing about buying a smartphone outright is that you now own your phone, indefinitely, until the day you choose to buy a new one. Owning your phone means you can also sell it when you’re done with it, which should ease the $700 to $1,000 purchase price, or give it to someone as a second-hand device.  However if you are in the forefront of technology or like to try out other phones, then leasing is for you.  But remember, there is no such thing as a free lunch.  Although lease to own is "interest free", there are several taxes and fees you pay on top of that payment plan.  Plus if you upgrade or trade to another phone before your lease is up, you lose your phone and owe any remaining balance on top of the lease price of your new device. While you may end up paying more leasing a smartphone than buying it outright, the benefit of always getting a new one in exchange could be worth it.

SOURCE: Lifehacker

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