I received a text stating that I could get an iPhone 12 mini for $5 a month, with a promotional credit of $29.50/month. I'm keeping my old plan, and phone, and wanted to give the iPhone 12 to my son, for when he graduated into high school.
I just wanted to know what my cost will be, after the 24 months has lapsed. Will I have to pay a lump sum to buy out the phone?
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That sounds like a great Graduation gift!
I understand there are lease-type options available from some of the other providers. Fido does not offer any of those options. Fido currently offers their Fido Payment Program which is generally the full device amount financed over the 24 months. Occasionally, they will offer credits as a general promotion or loyalty offer. It should be noted that those credits do not reduce the actual cost of the phone. Rather, they are added to the bill to offset the device costs.
For example, in your case, the cost of the phone is not $120 plus taxes ($5 x 24months). The total cost of the phone is $828 plust taxes (see here; as of Nov 13th, 2021). Financed, the costs would be $828 ÷ 24months = $34.50 (plus taxes). If you add the monthy cost of your offer with the associated credit, it totals the monthly financing cost for that phone. So after the contract has ended, there would not be any amount to buy-out the phone. There wouldn't be any remaining balance left on the device.
I mentioned that the credits do not reduce the actual cost of the phone. That point becomes relevant if the contract is ended prematurely. If you terminate your contract early, you will be required to pay the remaining balance owed on the device. The balance owed would not be $5 x remaining months, but rather $34.50 x remaining months (plus taxes). The remaining credits would no longer be applicable.
Hope this helps 😀
Thanks for the reply. Still a bit confused. (Could he because I'm half asleep). There's the promotional credit, of $29.50, and the device cost of $37.42. What would the promotional credit be for? Is that just deducted from the monthly cost of the device? Also, am I still able to use my current phone, with the SIM card?
The credit would be either a promotional offer or a loyalty offer for using the Payment Program. If you look on Fido.ca many of the advertised promotions are After Bill Credit. Those advertised costs would have included the applicable credit on offer. As mentioned in my other post, the credit isn't deducted from the monthly cost of the device, but rather added to your bill to offset the cost of the device.
It took me a while to figure out why your screen capture shows $37.42 for the monthly device financing rather than the $34.50 I calculated previously. I think your screen capture shows financing for the 128GB version whereas my calculation was for the 64GB version.
You would be able to continue using your current phone and SIM card. The new phone would likely include a SIM card, but you don't need to use that SIM. You can keep that SIM card for future use. You would just need to update the SIM card information on your (or your son's) line via My Account.
Hope this helps 😀