Why I Don't Buy Mobile Phones On a Monthly Contract

I explain why I prefer to buy my phones outright on a sim-free basis than paying for a monthly contract for the phone.
I'd love to hear your thoughts on this so please leave a comment below. As always, if you enjoyed the video, please click like, share, and subscribe :)
Thanks guys.
Kevin
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[@SINISTERMusic]

Paying isn't worth it, I downloaded my new iPhone XS Max on torrent🤷‍♂️

[@nebulousstriker7640]

That's smart, how did I not think of that?

[@jurgenpervana3750]

Stonks

[@leemason666]

Great timing for this video to pop up. I’ve had my iPhone X for 2 years now and make my final payment at the end of the month. My provider is contacting me to upgrade but not interested. More than happy with the phone and will save £40.00 a month which is better in my bank. Just gonna stick with sim only and if I want to upgrade in future I will just save up for it.

[@stephenoconnell4479]

Hi there I would just like to say what a great Video,so true about these contracts are getting expensive these days. Thanks for your information,keep up the great work 👍

[@KevinMuldoon]

Thanks Stephen

[@Mist_R]

I do the same, I did my calculations too and realized the same thing when I decided to start to get a plan becoming a uni student who couldn't rely just on the internet anymore which was why I didn't bother with plans. Anyways, I realized the same thing. I didn't even bother and consider calculating the future value of the phone and whatnot, just comparing the monthly payment with the phone vs purchasing my own phone was enough to see how the latter is better. I told my family and friends how I'm actually saving by doing that, but they think I'm crazy or a noob. It's simple math, I don't get how so many people are biting into this trap setup by phone providers. Not to even consider how they require a more expensive plan to get the newer phone, when in reality, you don't need all that costly services included in the plan. I can go on and on..

[@broken1394]

Great video buddy, my contract is just finishing. I'm not going contract again.

[@KevinMuldoon]

Glad you liked it.

[@MCALLAN1998]

It's not about if you go with a contract or not. Some contracts work out better, I saved over £200 on my S9 in 2018 with an EE contract, and that's EE

[@hmhsbritanic9859]

@@MCALLAN1998 I have EE pay as you go

[@OGKOfficialChannel]

@Jo Bloggs that’s when they have to look into their finances. Increase their income is an great way to help.

[@soniczforever5470]

The company was grossly unfair I'm being spammed and everything bills taken 2x a month or not at all. I'm cancelling my direct debit if I see this again. Bank told me extra money was gone.

[@seswan9254]

I'm pretty sure some deals at this time of the year actually work out cheaper as I'd be around 500-600 for an S8 right now and I'm already £15 a month for a sim with gift gaff so I'd be up at 960-860 after two years if I bought phone out right and kept that deal where as I'd only be £740 for S8 on contract including minutes data etc think it all just depends when you buy the phone and if you look hard enough

[@jonathangaffey2488]

I'm the same mate

[@lordbushmills3089]

I buy directly from Apple using their interest free credit plus a sim only deal. Cheaper and more flexible!

[@mars.4118]

The best thing is that for prepaid you can choose the phone you like. Even one which is not offered by any mobile provider. One plus, Xiaomi, Honor, Oppo, Asus and many more.

[@TheRealBleach]

Yeah.

[@dianeharrison4975]

Its hard for people who cant buy the phone i understand,but i ve paid my s10 off monthly over a year,and got £20 sim only (100gb,data,unlimited calls,texts) from o2, but if i d got a contract I d have probably paid £50/60 over 2 or 3 years,it sure adds up.

[@marcomarcello2538]

Great video, thanks. Never paying through the nose!

[@cliffcarr3632]

Hi Kev, thanks for the video, I agree totally. Mobile phones to me are a very personal thing, as much as say buying any thing else, and this advice is quite valuable. I have a SG8, still mint condition, and does me more than enough.I am going sim card only contract, that knocks off 50% off my bill compared, if I was going to contract to say a newer and better phone ie SG10 for eg. I will keep this phone for 2 years, save £480.00, which I can happily buy a new decent phone with that, or at least its going to pay for a big chunk of it. Also another note is, people are also paying phone insurance to go with it, but if they have home insurance, they should check their policy and they may find their phone is covered , mine is, on Direct Line.

[@KevinMuldoon]

Good tip about insurance. I've never seen the point of ibying phone insurance specifically as its always expensive. I'd rather put the money to my next phone. But you're right that some home insurance policies may cover it 👍

[@DropshotJamieHD]

Another good tip is to look into the Business sim only plans, they are usually priced slightly cheaper & have extras thrown in such as international mins & unlimited email data etc. Worth a check if you have a business/self employed

[@cefnonn]

Thanks for making and uploading. Lots of good sense in your video.

[@KevinMuldoon]

You're welcome. 👍

[@ServantStatusMinistries]

And then may I add, buy a phone that is a year or two old if it’s iPhone because iOS supports phones 5-6 years old so you would get major discounts by buying an older iPhone out right

[@spookygeek9459]

Yes I totally agree I stop by my phone and put Sim only I got 02 not bad for what I want 👍🏻👍🏻

[@BonnieBurton-gn6tq]

Thank you people need to hear these good deals. That’s great. I do pay for my phone too. I mean like the iPhone SE three now is $150 simple. Simple, mobile straight talk boost mobile and another one I like you can earn money off your bill and then you can have the pad too are like being disciplined. I don’t usually comment on social media. I’m very awkward about that but I appreciate this video. Good day just do your research, I’m here in the USA plans there might be different

[@sulaman4280]

I brought my s9 when it came out since my s5 died I buy phones full price that can last me a good 3 to 5 years

[@dhazz2513]

The laws changing soon i think, tough sxxxx EE AND 3

[@thebugasproject]

It would depends on which country you are. Here in the Philippines, it is actually cheaper. Let me get some numbers. Iphone 11 Pro Max cost PhP 82,990 Globe Contract monthly Php 2000 for 2 years where cash out is Php 52,800 split into 24 months which is 2,200. The difference between the sim only and with phone is Php 500 times 24 months is Php 12,000 With the phone cash out, Php 52,800 plus Php 12,000 equals to 64,800 which is almost Php 20,000 less when you get it unlocked. Iphone prices here in the Philippines stay much the same the whole year.

[@KevinMuldoon]

Yeah that makes a huge difference. In the UK, the price of phones on contracts isn't very different.

[@FMCREPAIRARMAGH22]

I have a 12 month sim only plan with a 0 spend cap so £12 a month with O2 for a year. But my phone is paid using Klarna so no price increase

[@KevinMuldoon]

I'm on a similar deal. I was on a 300GB deal with them which I hardly used, so dropped down to 8GB for £7.84 per month. There's only been one month where I used it all.

[@mikewhite4988]

Great video I always buy sim free and use payg sim save thousands

[@KevinMuldoon]

I have a monthly sim contract but I always buy phones sim free 👍😎

[@aaronmullins9992]

35 pound unlimited data,unlimited called,unlimited text(Tesco mobile)sim only monthly roll on,I live it,I can change anytime if I want.

[@elliotstack623]

@@aaronmullins9992 You can get this for £10 a month with Voxi

[@dianeharrison4975]

Prices on contracts are crazy now

[@Englandsbestlover]

I bought an iPhone 6s 2 years ago for £160 and I pay £7:50 a month sim only.

[@shortlineslalom]

Thanks very much

[@quartz3699]

contracts tend to be cheaper than buying the phone and the data seperately, if you don't care about having data then it's not a fair comparison as the major networks are giving you data too

[@TinyTroglodyte]

I actually got a better deal by getting a deal with a phone as well. There was a deal for £4 extra a month for 100GB of data, which is nice. Plus unlocking the device doesn't take too long normally. But after the deal was over it was a terrible price compared to sim only.

[@KevinMuldoon]

There was an announcement the other day that all companies have to sell unlocked phones in the UK. It doesn't come into play until 2021 though.

[@wrathpsp]

@@KevinMuldoonThanks. I didn't know that! That's great news :)

[@johnsmith8848]

Reality check 15 years later. I will definitely be taking this advice.

[@bencrawshaw1227]

I had an EE pay as you go phone and they have tried to say I owe them money for a contract.

[@mjbadboy14]

I only do sim contracts. Prefer it more.

[@petesaxty9140]

The other issue, is a lot of people who started having mobiles in 2000s, were used to their phones being subsidised by their contract. So conditioned into buying phones that way. Obvs present day, very rare that a phone is subsidised. I went back to contract recently, ends, Nov. That was because unlimited data on EE. I needed EE for coverage reasons, 800Mhz at 1 location. Once split cost of phone over 24 months. I was paying £22 a month for unlimited data. With price increases that is now £24.25. A sim only from EE for the same was and still is £35 a month. I believe those can increase over contract as well so would £36.50 by now as well. I have not been able to find a similar deal since. Looks like going back to SIM only after the end of this contract.

[@KevinMuldoon]

I'm on O2 at the moment. £15 a month. Not my preferred network, but the only one where I get a good signal at home. It's always enticing to take a contract to be able to get a new phone, but I hate being tied into those long term contracts.

[@petesaxty9140]

Have to be careful with Virgin. Their default contract is 3 years, not 2 I believe or at least their brilliant deals look low as monthly cost is low but is over 3 years. My Dad paid way over odds for 8 plus. As it was 3 years. Next time around bought phone outright, then sim only and PAC code to move number across.

[@KevinMuldoon]

Their customer support is pretty bad too. It's near impossible to speak to someone.

[@soniczforever5470]

I'm getting charged twice a month dont

[@zeynepela9762]

Quite helpful, thanks for this!

[@islandsky3029]

I AGREE AND ITS YOURS

[@purple43262]

How do you get a phone on contact?

[@RM-lj8bv]

I tried having a phone pay as you go and put money on it and by the time I wanted to make a phone call most of the credit had gone from it taking unsolicited incoming calls that took away the credit. I just don't understand how people put up with this.

[@JosiahClelland]

great video thanks!

[@KevinMuldoon]

You're welcome.

[@liltrell1k]

What happens if you don’t pay monthly contract

[@artemlobov3685]

I bought a used iphone 6S 64GB for £85, and pay £12 a month.

[@KevinMuldoon]

Bargain. As long as the battery is still good, you're golden.

[@craigr9881]

£12 a month with who? What do you get for that?

[@artemlobov3685]

@@craigr9881 Just with Giffgaff

[@craigr9881]

Artem Lobov ahh okay they don’t offer me enough GB for what I’m after

[@artemlobov3685]

@@craigr9881 Yeah it's all unlimited except 10GB of data which is enough for me, but they have other options. Still saved by not doing a contract.

[@eddnufc93]

You are not taking into account the fact that the price of a contract includes your calls, texts and data. For a fair comparison, you would have to include the cost of a sim only plan or monthly PAYG top up. I do agree that it is better to buy a phone outright though, because you have the freedom to switch to a new phone or network whenever you like. The Galaxy S10+ from Three is £900 to buy outright, and a 30 day rolling contract with 4GB data and unlimited calls and texts is £16 per month. £900 + ( £16 * 24 ) = £1, 284 The same phone, with the same amount of calls, texts and data on a contract is £79 upfront, then £47 a month without insurance. £79 + ( £47 * 24 ) = £1, 207 In this example, the contract works out £77 cheaper. You sold your freedom for £77.

[@KevinMuldoon]

Three may be charging £900 for the Samsung 10+, but that's not the real price. You can get it from China for around £700 and even within the EU you can get it cheaper. Not to mention the fact that the price of it will drop a lot over the next two months to make buying outright even more appealing 👍😁 I do get what yours saying though. You always have to look at the total cost of each option. Last year, for example, Huawei had a lot of good deals for the P20 Pro.

[@eddnufc93]

@@KevinMuldoon The best advice would be to shop around and look at all the options. There may be better deals to buy the Galaxy S10+, but there may also be better contracts. The best deal will depend on the customer, if you are happy to stick with the same network and keep the same phone for the next 2 years, a contract may be the better option if you can find a good deal. £900 may not be the cheapest, but it is not the most expensive. Everyone always thinks Amazon is cheap, but the S10+ sim free from Amazon will cost you £1,099.

[@KevinMuldoon]

Yeah Amazon is rarely the cheapest. It is from time to time if you order from Amazon Italy etc. For me 2 years is still too long, but it's common for others. Are you buying the S10+?

[@eddnufc93]

@@KevinMuldoon I would love an S10+, but not at today's prices. I'll stick with the S9+ for now.

[@KevinMuldoon]

Check out the Mi 9 too. Got a snapdragon 855 and the cameras look impressive.

[@GoodGuyChucky-666]

My 2 year contract is going to end soon & I'm going to be switching to sim only, as i am more than happy with the phone i got right now & i don't want to keep getting a new phone every 2 years just for the sake of it, as I've been doing my homework on it & asking myself weather it's worth having the 2 years contract & doing the maths on how much i was paying & comparing to the recommended retail price from the manufacturer, I was paying £615 on top of the RRP, basically i could have bought 3 handsets for the total price of a 24 months contract, I think the 12, 18 or 24 months is a scam when you scratch under the surface, but it's an easy way for phone manufacturers and network providers to sell their products, each to their own

[@KevinMuldoon]

I also think it's an easy way for them to encourage people to buy phones they can't afford. I did it for years before I switched to sim only.

[@Jimmie16]

My contract with EE ran out 3 months ago and they're still charging me the same price even though the phone's paid for and their sim only deals are expensive.

[@AIDEDDD]

Just end the contract ?

[@craigr9881]

Yes but sim only contracts are still a year and realistically how often are you gonna change your phone? Possibly every year?

[@KevinMuldoon]

Most contracts in the UK are 24 months. Some are event 36 months. The 12 month contracts are extremely expensive.

[@markfern]

Good video... mostly buy all my handsets SIM free... just got two year contract on 3 for iPhone 7 plus... just didn't want to shell out all that cash in one go.. 3 is good for me as I spend a lot of time in Spain and can roam there free of charge...

[@KevinMuldoon]

+mark fern I was with three for years. I loved the price of their contracts, but I could never get a signal in my own house. If I could get a better signal I would return to them for the European roaming. What was the deal like?

[@markfern]

128GB iphone 7. plus.. 30GB Data, All txt and calls.. £99 upfront.. £63/month.. 1st 6 months at £31.50/month. Guess it would have been cheaper to buy handset and have sim only... but i didn't want to splash out all that money in one hit and over a two year period you don't really notice the small amount you pay extra..

[@KevinMuldoon]

Wow 30GB of data. That is insane. Are you using your phone as a wifi hot spot or do you just watch videos a lot on the move? I've just moved from 2GB a month to 6GB of data a month. I wasn't even using the full 2GB before. I don't use as much as others because I work from home. I'm keen to try out more mobile live streams on the move for my channel. I'm not sure how much data that will use. If it was a lot and I started doing mobile streams all the time, I would perhaps get more, but I'm not sure I'll need it. So in total you are paying £99 + £189 (£31.50 * 6) + £1,134 (£63 * 18) = £1,422 over two years. On the Apple UK shop it costs £819 for the 128GB iPhone 7 Plus so your contract part works out at £603 over two years. That's just over £25 per month for the plan. On Three UK you can get a 30GB data deal on a 12 month plan for £18 per month. So you're effectively paying £7 per month extra. Which works out at £168 over two years. Obviously, it is not as cut and dry as this as I'm basing the above calculations on prices today, not when you actually bought the phone. I think that as long as you go through this kind of calculation and look at the total cost of a contract compared to buying sim free, a contract makes sense if it does work out cheaper. There's more chance of that being true with an iPhone as they don't drop in price in the same way that Android phones do. I still think that generally speaking a sim only deal and buying outright works out cheaper, but like you said, it saved you from having to splash out a lot of cash in the one go at the start, so I can see why you went down that route.

[@markfern]

Thanks for the great in depth reply.... Yes I guessed is pay more and I was toying between carrying on with my sim only... I'm looking at the Nokia 6 and possibly the next iPhone which I will buy outright... Trouble with this hobby it gets expensive lol.... For me also I soon get bored of the handset's and always want another.... Average I use around 12gb per month. Most of my higher usage is watching KZbin away from home...

[@KevinMuldoon]

+mark fern I'm normally the same, but haven't felt that way with the Google Nexus 6P. For years I changed my phone every year and sold my phone to find the next one. I've not really felt the need to do that with this phone until now (18 months later). I'm not in an immediate rush but keeping my eyes peeled. The next iPhone could be a good one. I've not had an iPhone for years as they're quite expensive and iTunes sucks, but if they do something special I might be tempted. The new Blackberry is pretty cool too. Not sure how useful I'd find the physical keyboard. I had a blackberry years ago and loved the Keyboard, but it's been years since I used one.

[@craigr9881]

Virgin mobile have stopped 30 day rolling contracts for Sim Only. Now only 12 months.

[@KevinMuldoon]

I didn't know that. I'm on a 12 month contract myself.

[@tgn-contentandotherstuff5652]

After the 24 month contract can you use the phone without paying monthly

[@KevinMuldoon]

Of course. That's why you need to take into account the full price of the contract over 24 months to work out the real cost of the phone and contract.

[@ianbarrett4166]

Kevin Muldoon my phone contract runs out in sept do I just tell them I don’t want to pay any more monthly payments ?

[@tgn-contentandotherstuff5652]

@@ianbarrett4166 no you just stop paying im pretty sure but call them just to make sure

[@KevinMuldoon]

If you switch to a pay as you go or monthly sim contract, it will be cancelled automatically.

[@ServantStatusMinistries]

Ian Barrett when you’re phone contract runs out you are no longer binded to them by contract so there is nothing to pay them. I paid off my iPhone 6splus two years ago and never upgraded. When you upgrade you get right back on contract. I now have a 5 year phone that still works great and have been apart of Verizon, metro, and sprint with it because it is paid off

[@redladybug9180]

I’ve been buying my phones out right for years but I’m only on a pay as you go sim. So I would like to change to sim only contract as it looks cheaper then monthly contact

[@KevinMuldoon]

You get some great deals on sim only. Shop around and you'll get a bargain.

[@craigr9881]

Let me know how you get on.

[@redladybug9180]

craigr98 I got a good sim only from Tesco mobile x

[@craigr9881]

RedLadyBug U what have they offered you pal?

[@foggyvhs8790]

This is why I strongly dislike phones, they get all washed up in this contract crap. The device is so tethered to a membership. It's just like how people used to just fully own a video game now you're paying for access to an online license.

[@edzgt5243]

Pay as you go

[@sacredclown4179]

Great content, what was better is your Scottish accent!!! lm ready to go into battle!!! and "pick a fight" lol with my provider!! I took your advice I now get 500 gigs a month max speed $36 a month, (20 Euros) with Vodafone, no contract, no exit fees so thankyou

[@KevinMuldoon]

Nice. Yeah it makes sense. It avoids many problems with contractors who try and tie you in for long periods.

[@sacredclown4179]

@@KevinMuldoon Absolutely, here in Australia, sim only plans are getting so cheap, they are now advertising sim only 20 euro a month unlimited data, again no contract month to month, no cancelation fee. To put that in perspective 5 years ago I had an iPhone 5c on a contract, 25 euro a month , with a whopping 500 MB ( 1/2 a gig) of data a month !! lol Keep up the good work mate, cheers from down under

[@KevinMuldoon]

Yeah that's so much better. Last time I went to Australia, I had a Vodafone SIM card and it wouldn't work in the UK, so I bought a Vodafone Australia SIM. Then when I later when to new Zealand, I had to buy a Vodafone New Zealand sim card as it wouldn't work haha.

[@wojciechklaus]

I bought my OnePlus 6T from Amazon which sold it to me with 5 monthly payments of £100. Got Smarty SIM only for 7,50 which normally cost me only just over £6, as they refund me for unused data. This saves me over £350 over the 2 years 😂

[@KevinMuldoon]

Nice. I didn't realise Amazon let you pay up phones like that.

[@wojciechklaus]

@@KevinMuldoon there is few requirements, but if you are a customer of then for some time then they can trust you and send you phone after just first payment. www.ricksdailytips.com/amazon-monthly-payments/

[@KevinMuldoon]

Good to know. I'll keep that in mind for future.

[@deano_bites]

36 months contracts now, and soon 4 years Not worth the money seems people getting longer and longer sentences with these mobiles

[@KevinMuldoon]

On the plus side, since I published this video, the quality of low to mid range phones has improved a lot. There's a lot of great phones under £200 that won't break the bank.

[@deano_bites]

@@KevinMuldoon yep even much galaxy s21 FE still going strong and that is £220 in CEX now feature packed mobile

[@KevinMuldoon]

@deano_bites Agreed. Xiaomi, Motorola and Nokia have released some good phones in that price range too.

[@nl4064]

so happy I dont use phones

[@TryABaconSlice]

Scuse me

[@joelbigc3540]

So convincible

[@RDR2Jammy1337]

If you buy a phone from Apple on a contract and pay off the full price, will you have to repeat the cycle of payments or will you no longer have to pay? :)

[@KevinMuldoon]

I'm actually not sure. Here in the UK, companies got away for years with not telling consumers their contract was up, but I believe it's illegal to do that now. If I'm right, people are automatically knocked down to a sim only deal at the end.

[@RDR2Jammy1337]

Kevin Muldoon Ah okay, I’m also in the UK, buying directly from Apple not any SIM provider so maybe after the 2 year period I won’t need to pay at all. Who knows...

[@RDR2Jammy1337]

Kevin Muldoon Hey. I’m back, so if you buy directly from Apple there is no upfront cost and after the 2 Year Period it will be yours. No extra costs.

[@hmhsbritanic9859]

Thats why I use EE pay as you go SCREW YOU CONTRACT I WANT TO NOT PAY £/$200 FOR A FUCKING SIM

[@spookygeek9459]

I get my phone from cast generator and got the iPhone X for £550 pound 💷

[@_productivity__nill_1131]

Screw iPhones, go with Android

[@hobiday5833]

Hello, I'm confused ur paying £15 a month so if you calculate it for 2 years (to compare it to a deal) it's £360 so £360 plus how much you bought the phone for up front. Isn't that a lot. Or am I calculating this wrong

[@KevinMuldoon]

Yes that sounds about right.

[@hobiday5833]

@@KevinMuldoon wouldn't it be cheaper to get the contract then?

[@KevinMuldoon]

@@hobiday5833 Contracts are rarely the best deal in the UK as phone companies charge the full price for the phone, whilst you can buy it outright cheaper, especially after launch.

[@petertaylor7100]

i had t mobile contract it was cheap at first then came the vat then it doubled so i got a sim free Vodafone cheaper

[@KevinMuldoon]

+peter taylor Makes more sense.

[@DrCox222]

When my contract runs out in December I will be buying the iPhone XR out right and stay with o2 and drop on to a £20 a month sim only

[@ahdkfknsbcienfnsk]

Chris Langton IPhone XR Will be the biggest waste of money you’ll get

[@DrCox222]

@@ahdkfknsbcienfnsk I am looking at the iPhone X instead tbh

[@jonathanoxlade4252]

What the point yea I probably paid over £1000 for a broken phone but you fucking idiots can upgrade it if a New phone comes out just upgrade lol

[@craigr9881]

How are you liking for iPhone XR?

[@exploringlife8404]

What happens if u don’t pay mobile contact after the first month

[@KevinMuldoon]

They'll cancel your network contract if you don't pay and probably chase you for the cost of the phone.

[@anj7580]

sim only deal for me

[@evacody1249]

Andrew Johnson the only mistake I made with my Google Pixel is a bought it out right from Verizon. Next time it will either be right from Google, Samsung, Apple, HTC or who ever. Yes it will be a lot more in that one paying. But after that the monthly payment is so much cheaper.

[@seswan9254]

I'm pretty sure some deals at this time of the year actually work out cheaper as I'd be around 500-600 for an S8 right now and I'm already £15 a month for a sim with gift gaff so I'd be up at 960-860 after two years if I bought phone out right and kept that deal where as I'd only be £740 for S8 on contract including minutes data etc think it all just depends when you buy the phone and if you look hard enough