Alternative to off contract pricing, a LOT cheaper, but theres a catch!

[DannyJK]

Just thought I'd share the love with this little bit of information.

So say you want to buy off contract because you upgrade whenever a new phone is available, but the phone you want from Telus is the 9860 which is $549.99 at the time I'm writing this post.

Thats a LOT of money!

Never fear there is a solution!

Telus, as of several months ago, has changed the way ending a contract works. Now if you want to cancel your contract and buy a new phone, you pay $10 a month for the rest of the months remaining on your contract.

This is a GOOD thing! as you can do this promotion at ANY given time during your contract!

So lets say you want the 9860 which, like I said, is $549.99. Buy that phone on a 3 year contract which is $99.99 and when the new QNX phone comes around the corner in say a year from now and you want to buy that.

So now all you do is go to your local Telus store, tell them you want to buy out your contract and upgrade phones!

Because a year has passed on your 3 year term, your buy out will only be $240. Add that with what you paid for the phone and it comes to $340 and you've only had the phone for a year.

Doing this is better than using Telus' 1 year contract plan as with the 9860, the 1 year term costs $499.99. Thats a total savings of $160!!!!

Keep renewing phones and your savings adds up!

The only trick is that, one day, you WILL be stuck with a 3 year contract as this only works by renewing your contract.

So if you KNOW your going to be sticking with Telus for many years down the road but tend to buy off contract, consider my loop hole! It will save you money!

Dont forget to clickem mah Thanks button if you like what you see! Take Care everybody!

[JohnnyTheCanuck]

It's called EDUF (Early device upgrade fee)

they've essentially cut in half their full contract termination fee ($20 per month) to offset any loss in subsidizing a phone by having a client renew or start a contract...

some basic math:
Phone Outright (9860)
$549.00 + tax
$499.00 + tax one year
$449.00 + tax two year
$99.99 + tax one year (This is a launch sale and will eventually up to $249.00 for a time then drop a $100 to $149.00)

Take a $600 phone, divide by 36 months and you end up at $16.67 per month... so it's a no brainer to pay the eduf (which is only applied to your next bill and not due up front when you renew) every time your phone breaks or you get tired of it.

I did the EDUF on this latest acquisition of my 9860. My term on my Storm2 was due to expire in Dec '12...which means I had 15 months left, I walked into the Telus store, paid $112.00 ($99.99 + 12% sales tax here in BC) and the EDUF of $150 is applied to my next bill...essentialy it would have been the same as no term left and renewing this device at full pop 3 year renewal at $249.00, and the device is not going to drop a lot in price, thus it was a no brainer.

[DannyJK]

Originally Posted by JohnnyTheCanuck

It's called EDUF (Early device upgrade fee)

they've essentially cut in half their full contract termination fee ($20 per month) to offset any loss in subsidizing a phone by having a client renew or start a contract...

some basic math:
Phone Outright (9860)
$549.00 + tax
$499.00 + tax one year
$449.00 + tax two year
$99.99 + tax one year (This is a launch sale and will eventually up to $249.00 for a time then drop a $100 to $149.00)

Take a $600 phone, divide by 36 months and you end up at $16.67 per month... so it's a no brainer to pay the eduf (which is only applied to your next bill and not due up front when you renew) every time your phone breaks or you get tired of it.

I did the EDUF on this latest acquisition of my 9860. My term on my Storm2 was due to expire in Dec '12...which means I had 15 months left, I walked into the Telus store, paid $112.00 ($99.99 + 12% sales tax here in BC) and the EDUF of $150 is applied to my next bill...essentialy it would have been the same as no term left and renewing this device at full pop 3 year renewal at $249.00, and the device is not going to drop a lot in price, thus it was a no brainer.

Well they've changed it now like you've said. As I have now learned by upgrading my phone.

A long LONG time ago, the EDUF fee was $20 a month for every remaining month left on your contract. Then they changed it to 10$ a month for each month remaining on your contract, which is what I had to pay. AND NOW they have once again changed the EDUF to whatever the cost of your phone is divided into the length remaining on your contract. WHICH IS MORE EXPENSIVE THAN WHAT I PAID! Glad I was still eligible for the old system.

This new way is more expensive than $10 a month, so I dont know if my way of upgrading will even be worth it anymore considering it will probably be coming close to off contract price and you will be signing for another 3 years, I dont know how much money you would save. I think the only way this would be worth it is if your coming close to the end of your contract, say like a year left or so. I would do the math, but I'm really not good at it.

[DaveInVan]

So just to be clear, what is it now? Is it $10/mo OR your subsidy averaged out? I got a $250 discount, which works out to $6.94/month times the 36 months in my contract. I now have 18 months left in my contract, so will I have to pay $180 to do an early upgrade or $124.92? Obviously I'd prefer if I just get dinged the $6.94/month!

[meganVee]

It is changed so that the amount discounted off of your phone is divided up over the number of months in the contract you signed.

So if your phone was $500 and you got it on a 3 year contract for $200, the remaining $300 is divided out over the 36 months ($8.33 per month). If you decide you want to renew your contract with 10 months left, you simply pay the $83.30 to get out of it!!!

[DaveInVan]

That's great, thanks!

[DannyJK]

Originally Posted by meganVee

It is changed so that the amount discounted off of your phone is divided up over the number of months in the contract you signed.

So if your phone was $500 and you got it on a 3 year contract for $200, the remaining $300 is divided out over the 36 months ($8.33 per month). If you decide you want to renew your contract with 10 months left, you simply pay the $83.30 to get out of it!!!

This man! He speaks the truth! lol.

EDIT: Thanks for "Liking" my comment meganVee! But now that I actually read your name..... makes me think, you might not be a man after all!