Looking for ways to save money on a new phone contract? Buying a new phone can be expensive, but it doesn't have to be!
Here are some of the ways you can save money when taking out a new phone contract...
How to save money on a new phone contract
1. Shop around before your contract ends
If you're coming to the end of a phone contract, start shopping around before it runs out. Otherwise, you'll find yourself overpaying each month for a handset you already own!
Start looking on comparison websites like Quidco Compare and considering what type of contract will suit your needs the best.
2. Think about your current usage
It can be tempting to go all out with a new plan, and sales assistants will often try and upsell you. However, think about how you use your existing phone and make a note of what you need before you look at purchasing a new contract.
Do you often find you have a lot of data left at the end of each month? Are you working from home and using Wi-Fi most of the time instead?
Perhaps you don't have enough minutes to make all the calls you need to each month and would like more minutes instead of data?
These are all things to consider before you commit to a new phone contract.
3. Consider a sim only deal
Are you happy with your current phone? You can save a lot of money on a monthly contract by keeping hold of it and purchasing a sim only contract.
You can often get more bang for your buck here too! Many sim-only deals offer generous data, texts, and minutes at a fraction of the price of a traditional contract.
In some cases, you can also get better cashback offers when you sign up for a sim only deal.
You may also like: 5 quick & easy ways to save money on your broadband bill
4. Pay for the handset upfront
Another way to save money on the cost of a phone contract is to pay for the handset upfront, if you can afford it, of course.
With a traditional contract, providers bundle together the cost of the phone with the service, which means you'll often find yourself paying over the odds for the handset itself.
So if you can, pay for the phone upfront and consider a sim only deal instead.
5. Haggle with your mobile phone provider
As a consumer, you hold a lot of power! Providers really don't want to lose customers, so if you're coming to the end of the contract, compare quotes and tell them what you can get somewhere else and ask if they can match it.
If they can't match any of the deals you've found elsewhere, ask them to put you through to their disconnections department. It's this team's job to keep you as a customer so they'll be more likely to help and give you a best and final offer.
Don't forget, you can also join live chats now, where you can haggle here too. This can really help if you get a little nervous or overwhelmed on the phone.
If you're happy to call, a top tip would be to write a quick script with all the points you'd like to cover, just so you don't forget anything!
6. Get cashback on a new contract
7. Buy a refurbished phone
Buying a new smartphone contract can be expensive, especially if it's a popular one like the latest iPhone or Samsung Galaxy, but you can save money by purchasing a refurbished phone instead.
Refurbished phones are cheaper because they are pre-owned or may have been simply bought and returned. They may have also been repaired by the manufacturer or seller.
These phones can vary in condition and will be graded in condition e.g. condition A is basically like new.
You may not get all the original accessories, boxing, and instructions either, but you can still get a seller warranty on these phones depending on where you purchase them from.
8. Apply a spending cap to your contract
Another way to save money on a new phone contract is to set spending caps. These will stop you going over your monthly allowance and help avoid any nasty shocks when your bill comes in each month!
You can set these at the time of purchasing your contract, or add these later on.
9. Don’t get lured in by freebies
Offers and perks can help you save money on your contract and in other areas of your budget e.g. music subscriptions.
Plus, consider which network providers offer freebies to customers. O2 and Vodafone have their own loyalty schemes, which could help you save money.
However, while those new headphones or Netflix pass may look like a great deal, it's worth weighing up if the contract will cost you more as a result.
These perks may only come with newer, more expensive phone contracts, so you might actually be better off choosing a cheaper contract without perks in the long run.
10. Consider a family or shared plan
Family plans or shared plans enable you to link anywhere between two up to 20 (yes, 20, you read that right) mobile phone contracts up to one account, meaning there is just one bill to pay each month.
This is a great idea if you want to combine the bill with a partner or your family, or you run a business that requires multiple phone contracts.
Many networks offer a discounted rate if you have multiple members on one plan, and you're less likely to pay more for data or minutes that often get left unused each month.
Plus, you can also split the discounted cost of a shared plan with your family or friends, making it a cheaper option.
Bonus tip! Sell or trade in your old phone
If you have a popular make or model of phone and you're upgrading, it's always worth checking how much you could get for your existing handset on selling sites and phone recycling sites. Selling it could help pay towards to your new contract!
If you're planning on staying with the same network like O2 or looking to buy your new phone from a retailer like Carphone Warehouse, you can often trade in your used handsets and this will contribute towards the deal you get on your new phone.
Of course, this all depends on the condition and desirability of the make and model of your old phone, but it's always worth looking into to help you save money on a new phone contract.