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How does leasing a phone work?

Simply sign a lease deal, and in exchange for a low monthly payment, you get a phone you can use, plus the option to upgrade at any time. Just keep paying the flat monthly fee, and you can turn in your old phone for a new one every 12 months. One carrier even lets you swap phones up to three times per year.

Is it better to buy or lease a phone?

Leasing a phone can be cheaper than paying off a phone in full (whether outright or via monthly installments) and you'll be able to get a new phone every 12-18 months. It may seem like leasing your cell phone isn't a good idea, but for some, leasing could actually save you money in the long run.

Is it better to buy a phone or pay monthly?

'Buying a smartphone outright can be cheaper in the long run, compared to locking yourself into a two-year contract. ' But buying a phone outright isn't for everyone. For example, if you like to sport the latest handset and aren't fussed by higher monthly plan costs, then a mobile plan might suit you just fine.

What happens when you lease a phone?

If you decide to keep leasing the phone after your agreement ends, you can keep paying the same monthly amount for as long as you wish to lease your device. However, be careful if you paid $0 down. If that's the case, your payment will go up to the original monthly amount quoted for $0 upfront customers.

Is it better to buy iPhone outright or on a plan?

Many people assume that buying a phone on a contract gets you the biggest savings, thanks to telco handset subsidies. But the mobile phone market has changed. These days, you can save up to around $1,000 over 24 months by buying an iPhone outright with a SIM-only plan, rather than on a contract.

What happens if you don't return a leased phone?

Even if you return a phone, you could be charged for both the phone and additional fees. If you return a phone within the 14-day trial period of signing up, you're charged a restocking fee and possibly other costs. Even if you can figure out how to return a leased phone, they still bill you for it.

Do you have to return a leased phone?

You must return your device in good working condition and undamaged. You will be charged a fee if you don't erase the content and settings on your iPhone before returning it. You have 30 days to return your phone, or you will be charged additional fees.

What happens if you sell a leased phone?

Selling a Leased Phone You may be wondering if you can sell a leased phone the same way that you can sell a phone on an equipment installment plan. Unfortunately, the answer is no. A leased phone must be paid off and bought out before you can sell it. Otherwise, you must return it to your carrier.

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