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Is a mobile phone contract with a smartphone more expensive or a smart buy?

Is there value in signing a mobile phone contract that includes a smartphone, or is it wiser to maintain them as separate purchases? To determine this, one needs to do some calculations.

Contemplates consumers: Is mobile phone contract and smartphone combination beneficial? Or is...
Contemplates consumers: Is mobile phone contract and smartphone combination beneficial? Or is keeping them individual a superior option? Responding necessitates numerical assessment.

Is a mobile phone contract with a smartphone more expensive or a smart buy?

Save BIG on Mobile Phone Tariffs: A Comprehensive Guide

Hear this, folks! Those eye-catching mobile phone tariffs, often bundled with smartphones, aren't always the dealbreaker they claim to be. Here's a no-nonsense guide on cracking the code and finding the real bargain.

Don't Get Sucked into the Hype

Just because it's presented as a 'sweet deal', doesn't mean it is. Before diving in, calculate whether a standalone tariff without a smartphone would serve you better in the long run.

Set a limit: Monthly Tariff Costs under 9 Euros is Ideal

The financial experts at "Finanztip" suggest a gold standard: Effective monthly contract costs without a smartphone should ideally not exceed nine euros. This benchmark is based on their recommended tariffs, which usually range from five to nine euros per month and provide a data volume suitable for most users, starting from 1 GB (for light usage) to 35 GB (for heavy usage).

Master the three-step Formula

The secret to finding the right tariff is in the calculation:

  1. Determine the average monthly price of the combo offer by:
  2. Multiplying the monthly basic fee by 24,
  3. Adding all costs such as one-time payments, setup fees, or shipping,
  4. Subtracting all discounts such as a switching bonus, and
  5. Dividing the sum by 24.
  6. Research the cheapest market price of the smartphone, for example, via price comparison websites like "Geizhals.de", "Günstiger.de", or "Idealo.de". Then, divide the price of the smartphone (including shipping) by 24.
  7. Subtract the calculated smartphone value (from step 2) from the average monthly price (from step 1).

Make Sense of the Results

The result is your monthly effective price of the contract without a smartphone. Here's what it means:

  • Result over nine euros: Opt for a separate purchase, it's generally more economical.
  • Result between five and nine euros: Fair offer, nothing to sneeze at.
  • Result under five euros: Good deal, grab it while you can.
  • Result of zero euros or less: You're practically getting the tariff for free.
  • Negative result: The smartphone is cheaper over the contract term than buying it separately – but extraordinary cases.

Remember the Fine Print

Great combo offers are ideal when you need a new smartphone. However, don't forget to cancel the contract after the two-year minimum contract term and switch to a cheaper provider to prevent overpaying.

  • By carefully calculating the actual cost of mobile phone tariffs, consider the advice from financial experts at Finanztip, who suggest that the ideal effective monthly contract cost without a smartphone should not exceed nine euros.
  • If the result of your calculation for finding the right mobile phone tariff is a monthly effective price of the contract without a smartphone that is less than zero euros, it means the smartphone is cheaper over the contract term than buying it separately, although such cases are generally rare.

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