In other industries, this sort of advertising would be laughed at.
That’s what’s happening with cell phone contracts.
The Hard Data
Let’s take a look at now much these free phones actually cost.
You’d pay $80 per month.
Over two years, that’s a difference of $360 that you’d save on a contract.
But there’s no option for a contract – you have to buy the phone for full-price up-front.
But $650 phones are cheaper than you may think.
After all, cars sold with no money down aren’t called “free cars.”
If you have a credit card, you might get anything for “free.”
Just buy the item on your credit card and pay the minimum monthly fee.
The cell phone carriers managed to get most people buying on-contract phones by only providing a single option.
So, should you avoid free and discounted phones?
Image Credit:Clive Darra on Flickr,Eliot Phillips on Flickr,Amy Claxton on Flickr
