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    Is this a logical/savvy way of thinking?

    Just ended my contract.

    Got the iPhone 7 on the Very Deal 10% off and 12months interest free. Total cost £540

    I sold my old iPhone 6 on eBay, after fees I got £245.

    Now the way I'm thinking is that the new phone actually cost me £295 (540-245) and I'm currently on a sim only deal £15 unlimited text&calls 15gb data

    So if I decided to keep it for 24months it would cost me

    £295 phone cost
    £360 network cost
    Total £655
    ?
    Is this logical or would it have been cheaper to go on contact ?

    6 Comments

    seems ok, at least your not nearer the £1000 like others.

    no it's not logical, you have disposed of an asset so there is loss above the cost of the phone...

    I don't think you can realistically factor out the fact that you got £245 for your iPhone 6.
    You either paid for that before as a total cost upfront or through having a contract. Your iPhone 6 was a tangible asset which was effectively exchanged as part-payment for your new phone.

    So I would say you are really still paying £900 for 24 months (the cost of the phone and the contract), but you sold something else you owned (in this case an iPhone 6) to pay towards it.

    If the asset you held was a TV, you wouldn't offset that without acknowledging it had an intrinsic value.

    Another way to look at it is, if you decided you no longer needed a mobile phone, you could have sold your iPhone 6 and had £245 in your pocket.

    the iphone 6 was an asset, discount that from the equation.

    So youve paid , 540+ 360 over two years, 900

    depending on plan you can get for as little as 768 over two years

    Your text here

    Original Poster

    Thank you for the clarification everyone

    You could make the assumption that you could sell your new phone for approximately the same in a years time, this could be factored into an approximate calculation of overall monthly costs.
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