I've got a couple questions I need answered
I am trying to add a phone to a line and the math for the cost isn't adding up. I understand trying to hide hidden fees in the background but having a $45/phone plan and $24/instalment plan adding up to $70. Can somebody please explain.
Next question is the next page is telling me that the original price of my phone is $1575 but somehow the Fido payment program at 0% interest rate is $1764 so I'm not sure how they can get away with declaring 0% interest when it's 12% over the 24 months.
So basically Fido is justifying this by saying there's 0% interest but since you're not buing the phone outright we're going to charge you 12% extra? I'd love to hear the explanation on this one too as to how they can get away with that.
Thanks,
Hello Laughlin92,
Welcome to the community!
I can't explain what is showing in your first screen capture, however, I think I can explain your second one. Firstly, it's a common misconception that the monthly cost of the phone was reduced. However, that was technically not the case. The device cost shown on the website was calcuated after bill credit. The monthly cost of the phone remained the same but customers were getting a credit on their bill to offset the cost of the phone.
Here's a screen capture of a cart summary I obtained with your same phone (I do not get the discount on the monthly plan):
~taken from Fido.ca on September 23, 2020; costs are base in BC
As you note, the full cost of the phone is $1575, which is financed as the original monthly charge ($65.63 x 24m = $1575.12). While there might be a slight difference due to the math, there are no interest charges. The Total Fido Payment Amount noted in your second screen capture includes taxes. Presumably you live in a Province with 12% taxes ($1575 x 1.12 = $1764).
As mentioned above, the monthly financed cost for the phone is not reduced. That is shown above as well as in your second screen capture as Monthly Installment including taxes ($65.63 x 1.12 = $73.51).
Also shown above is the bill credit you should have received to offset the cost of the device, which calculates to the $25 shown on the website ($65.63 - $40.63 = $25).
So based on the cart summary above and your second screen capture, I'm not sure how the monthly fee shows as $70 on your first screen capture. As I calculate it:
Monthly plan $45
Monthly discount $40.63
Subtotal: $4.37
Subtotal including taxes: $4.89
Monthly Installment (including taxes): $73.51
Total: $78.40
Perhaps you're getting an additional discount of which I am not aware.
Hope this helps 😀
Cheers
Hello again,
I figured it out...
@Cawtau wrote:... So based on the cart summary above and your second screen capture, I'm not sure how the monthly fee shows as $70 on your first screen capture. As I calculate it:
Monthly plan $45
Monthly discount $40.63
Subtotal: $4.37
Subtotal including taxes: $4.89
Monthly Installment (including taxes): $73.51
Total: $78.40...
The $70 shown in your first screen capture is before taxes while my calculation was after taxes ($70 x 1.12 = $78.40).
**edit** It seems likely there is a typo and the monthly installment shown on your first screen capture should be $25 as on Fido.ca. On the other hand, it's also possible that you're receiving an additional dollar in credit and my calculations should be adjusted to use $41.63 instead of the value used above ($65.63 - 41.63 = $24)**
Hope this helps 😀
Cheers
