Is there any advantage to pay a new phone upfront versus putting it in my tab?

  • 1
  • Question
  • Updated 3 years ago
  • Answered
I am currently not a customer and I am considering signing up and buying an HTC One M8 on a Canada-wide $40 plan ($55 total per month). My question is, would there be any savings if I buy the phone in full upfront vs just putting it in my tab? I know the tab doesn't incur interests but there surely must be an incentive for paying from my pocket instead of koodo's. Is that not the case??
Photo of hello-world

hello-world

  • 162 Points 100 badge 2x thumb

Posted 3 years ago

  • 1
Photo of Daniel Kim

Daniel Kim, Mobile Master

  • 34,736 Points 20k badge 2x thumb
Hi there, I believe it is the same either way since the phone outright is 360 and the 15$ tab x 24 months also equals 360.
Photo of Chad Burr

Chad Burr, Mobile Master

  • 203,968 Points 100k badge 2x thumb
The advantage is a 40$ bill each month vs a 55$ bill each month for 24 months. ;
Photo of hello-world

hello-world

  • 162 Points 100 badge 2x thumb
Chad, it's just a "delayed spenditure", overall you are not paying less (or more). But that's exactly my question, is there really no advantage to paying it all from my pocket? that would be unusual
Photo of Chad Burr

Chad Burr, Mobile Master

  • 203,968 Points 100k badge 2x thumb
There is no advantage to using a tab other than it's an interest free loan. Sometimes there are free gifts if you use the tab. I got a 100$ best buy gift card with the Moto X
(Edited)
Photo of hello-world

hello-world

  • 162 Points 100 badge 2x thumb
Chad, i think the interest free loan is a great advantage, but my question is more the advantage of NOT using the tab, in which case i am using my money and not koodo's to buy my phone. there's less risk for the company etc so I would expect there would be an advantage for not using the tab. But for sure the advantage of using it is a great one. Anyway, I understand now that there's no difference in terms of total, final amount. Thank you guys
Photo of Mitchell Palmater

Mitchell Palmater

  • 12,976 Points 10k badge 2x thumb
Simple answer: No advantage at all.
Photo of 5s

5s

  • 7,186 Points 5k badge 2x thumb
But that's tab retail, is it not?
Photo of hello-world

hello-world

  • 162 Points 100 badge 2x thumb
i don't know what's tab retail. Can you elaborate?
Photo of Vanessa

Vanessa

  • 666 Points 500 badge 2x thumb
Hi Hello-World :)

It would be the same thing if you buy full price or with tab but people prefer to have tab to avoid paying a lot upfront and finance the phone instead. The amount you didn't pay in the beginning is divided in 24 months (2-year agreement) and that's what you will pay monthly on top of the plan.
(Edited)

This conversation is no longer open for comments or replies.