Fido Payment Program - Additional Payments

[nick67]

Hello Fido forum, I am considering a handset upgrade with the new Fido Payment Program. I understand this is 24-month device financing where the cost of the handset+tax is divided into 24 monthly installments. Fido then applies a monthly credit to your bill to offset the device financing payment and reduce your monthly bill. I would like to better understand how making a lumpsum partial payment to my device balance would affect my monthly bill. I will use the iPhone SE which is being offered for $14.99 per month under the Fido Payment Program (no term price $690). I have to pay $28.75+tax monthly ($690/24months) and then receive a monthly bill credit of $13.76 to make my iPhone SE $14.99+tax per month.

My question: If I make a lumpsum partial payment of say $200 to my device balance of $690, how does this change my monthly bill? My new device balance would be $490 and as a result, my new monthly device financing amount should be $20.42 ($490/24 months). I assume I would also retain the $13.75 monthly promotional credit of $13.76. I plan to sell my old handset and put the cash towards my new handset financing balance and want to better understand the impact on my monthly bill. Thanks in advance for the advice!

Financing Details

Payment Program Promotion credit              $13.76

Full no-term price                                          $690.00

GST/HST                                                       $89.70

Total monthly payment program payment  − $779.70

What you pay today                                       $0.00

Length of term                                                24 months

Monthly installment                                        $32.49

Monthly financed device payment                 $28.75

Monthly financed device tax - GST/HST       $3.74

[nick67]

@KAPABLE-K, thank you for clarifying. Much appreciated!

[KAPABLE-K]

Hello @nick67,

The Fido Payment Program FAQs here should answer your question.

[nick67]

Thank you @KAPABLE-K, I did read the FAQs prior to posting this forum thread. However, I wanted someone to confirm more specifics with the impact of my monthly bill. Yes, I understand the monthly device financing amount should decrease (by how much?) and my monthly promotion credit should remain at the original amount (correct?). Basically, I want a Fido rep to confirm my example of applying $200 lumpsum payment to my device balance and what happens to my bill. Appreciate the info @KAPABLE-K, I just want more specifics.

[KAPABLE-K · Accepted solution]

Hello again @nick67,

Firstly you should note that the financing portion never changes the credit gets applied to your plan so in the end it balance out.

If your financing portion is $690 then it will be divided by 24 and you get your monthly payment. If you make a $200 lumpsum payment it becomes $490 divided by the remaining months.

If you pay off the device balance the credit will also be removed.

[nick67]

@KAPABLE-K, one follow-up question regarding the taxes charged on the Fido Payment Plan. It would appear the taxes are charged on your monthly invoice [(690/24) + tax] rather than charged upfront $690+tax then divide by 24 months. So strategically, if you do a partial prepayment of say $500, my device balance would become $190 and my monthly device financing payment would be $7.92+tax. I would retain my full $13.76 monthly device credit and, as a result, I am saving the tax on $500. Would I be correct in my interpretation? As long as I don't do a prepayment of $690 and pay off the entire device balance, I retain my full monthly credit of $13.76?

[KAPABLE-K]

Hey @nick67,

Unfortunately the tax man always gets his share. The tax will still have to be paid.

[khouya]

Hi:) Your retain your full credit

Have a nice day

[khouya]

Hi nick67!

It's difficult to say a price or discount. You can chat right now with a fido rep' by clicking support section at Fido.ca.

You will have more info about your account, your price, billing info and device options.

Have a nice day

It's been a pleasure to help you.