It’s becoming tough to scoff at carrier deals and discounts. However, there are catches and pitfalls, and the “free” phone offered by your service provider is anything but free. Still, millions remain with the same carrier for years, and the lure of cheaper MVNO options doesn’t tempt them to switch. If you decide to keep the same carrier, get the best phone possible. The line between the best midrange devices and flagships lessens when looking at carrier specials. Plus, if you wait a few months, you might get a more powerful device for the cost of a midrange.
No Thanks, Keep Reading
There’s plenty of money to be saved
Impressive discounts throughout the year
Carriers have been aggressive with discounts since finance deals extended to 36 months. I see $1,000 off promotions on the top flagship devices multiple times a year without needing a trade-in or new line. AT&T’s site currently offers the Samsung Galaxy S24 Ultra for $8.34 a month and the Galaxy Z Flip 6 for $2.78 a month. The Google Pixel 9 Pro XL is hard to beat. You can purchase one with a trade-in in any condition, and AT&T won’t add to your monthly bill. The phone is effectively free, with a catch.
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AT&T, Verizon, T-Mobile, and others don’t hand you a phone for a few dollars a month without strings attached. The discount from the original MSRP comes in the form of bill credits spaced over 36 months. You pay full price, but the carrier deducts the difference each month, leaving you with an attractive payment. That’s where the catch lies.
If you cancel service early, you don’t get to walk away with your phone. You also can’t pay the remaining total of the discounted price. You owe the entire non-discounted sales price. Most people don’t realize it’s a stipulation, but it keeps you on the hook for the 36-month contract.
You (probably) haven’t switched carriers in years
Get yourself the most powerful phone
There’s a lot to consider when moving your phone plan. You’ll research carriers to find the best one and decide whether a family or individual plan is best. It can be more of a hassle than it’s worth to unroot yourself and move to a competitor. If you’re used to and comfortable paying for the service you have, look for a way to get some savings back using a carrier finance deal. The Galaxy S24 Ultra and Pixel 9 Pro XL are monster devices, and getting them for a few dollars (or nothing) per month gets you the biggest bang for your buck instead of staying with a modest midrange phone.
It isn’t a charity. Companies don’t do it out of the goodness of their hearts. Still, that doesn’t mean you shouldn’t take advantage of carrier financing.
Financing through a carrier has backend benefits. You can unlock the device when your contract is complete. Even if you don’t want to switch carriers, the phone is yours to do as you wish. Samsung and Google offer seven years of software support, so your phone will be worth a respectable amount even after three years of use. You might recoup a decent percentage of your initial outlay if you sell it. Or you can keep your phone and enjoy it without payments.
Carriers aren’t charities
They still make plenty of money doing this
Verizon, AT&T, and others don’t take a loss by providing you with a cheaper smartphone. Apple, Samsung, and Google augment a portion of the cost, and it makes sense for carriers to pick up a part. More network users are good, and carriers are betting you’ll stay with them for years. Manufacturers like it when more people use their devices, meaning more customers for their ecosystems. It isn’t a charity. Companies don’t do it out of the goodness of their hearts. Still, that doesn’t mean you shouldn’t take advantage of carrier financing.
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There are always alternatives. MVNOs offer much of the same data, speeds, and coverage as the bigger carriers for a fraction of the cost. If you’re paying for your device out of pocket, midrange phones make sense, saving you money. They also give you flexibility, as you can take your phone to the carrier that offers the best deal. However, not many of us do that consistently. You should work the system to your advantage if you’ve been with the same carrier for years.
Even with the pitfalls, it’s worth looking into
Carrier finance deals are a fantastic way to save money, especially if you don’t plan to switch soon, as long as you go in with your eyes open. As a tech journalist, I try out new and exciting midrange phones that offer excellent performance for less. They are great options if you prefer an unlocked phone. If you’re used to your carrier and cringe at switching, sign that deal and get a powerful flagship for nearly pennies on the dollar. You don’t need to ask Gemini Live to do the math to realize you’ll save money.
