T-Mobile Offers iPhone 5, Galaxy S4 For $0 Down For Limited Time

This summer, starting tomorrow, July 27, T-Mobile will offer many of its high-end smartphones for no money down with higher monthly payments on its Simple Choice Plans.

The new promotion will let T-Mobile customers pay no down payments on phones including the iPhone 5, Samsung Galaxy S4, Nokia Lumia 925, HTC One and Sony Xperia Z among others. The promotion makes many phones about $100 cheaper upfront, though users still have to pay the full price of the phones over time.

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The trade-off for not paying a down payment on the smartphones is higher monthly fees to pay off the phones. A $o down iPhone 5, for example, will cost $27 per month for 24 months. Before the promotion a 16GB iPhone 5 cost $145.99 for the down payment and $21 per month for 24 months. T-Mobile customers get to save the $145.99 upfront, but have to pay $6 more each month, which is actually a pretty good deal.

T-Mobile’s zero dollars down promotion will also save users $150 upfront on the Galaxy S4, but increase monthly payments by $5 per month.

The best deal out of every phone included in the promotion is the mid-range Nokia Lumia 521. The promotion simply cuts the $30 down payment of the phone and keeps the same $5 per month payments.

With the new promotion T-Mobile hopes to attract more users from other carriers. T-Mobile likes to tout that numerous users switch to the Uncarrier from AT&T, and this promotion may help increase those numbers.

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Users who sign up for T-Mobile can also sign up for JUMP! so they can more easily upgrade their phone in the future. The service lets users pay $10 more per month for insurance on their phone with the option to upgrade their phone with not added fees twice per year. In the long-term is makes more sense to simply buy unlocked phones and sell them back, but JUMP! is great for those who don’t want to pay $600+ upfront for each new phone they buy.

  

Comments

  1. Chris says

    So… You sign a two year contract, AND pay full price for the phone? Oh yeah, sounds like an awesome deal.

    • Andrew Beard says

      Except you aren’t really signing a two year contract. There’s no ETF, and you can cancel at any time. You are effectively signing a two year loan agreement for the price of the phone (at 0% APR). When T-Mobile started the no contract thing they dropped their monthly service charges by about the amount of a monthly phone subsidy, so chances are you’ll be paying less per month for T-Mobile’s service + phone loan than a comparable AT&T or Verizon contract.

    • Andrew Beard says

      Depends on the phone. But for the most part it’s the same as it was before hand. You just pay nothing up front and more in the monthly bill. Except for a few cases you end up paying the same overall (unless you opt for the Jump plan, where the an until you pay before trade in in much better)

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