Outright Mobile Phone Purchase vs. Monthly Installments: The Pros & Cons

Weighing your options for purchasing a new cell phone? You're probably wondering if you should buy your phone outright or go the monthly installment route. Both have their pros and cons, which we'll explore in this blog post. 

Outright Mobile Phone Purchase

Keep reading to see if buying outright or going the installment route is right for you!

Outright Purchase

Pros: When you buy a phone outright, you own it - no strings attached. This means that you can do whatever you want with it, including selling it, trading it in, or giving it away. Additionally, phones bought outright usually cost less in the long run than phones purchased via monthly installments.

Cons: The downside of buying a phone outright is that you have to pay for the entire cost of the phone up front. For many people, this can be a sizable chunk of change that they may not have readily available.

Monthly Installments

Pros: One of the main benefits of financing your phone via monthly installments is that it allows you to break up the cost of the phone into manageable payments. This can be extremely helpful if you don't have the money available to buy a phone outright. In addition, some carriers offer perks for those who finance their phones, such as trade-in discounts or waived activation fees.

Cons: The biggest downside of monthly cell phone financing is that you never actually own your phone. Instead, you are essentially leasing it from your carrier until you've made all of your payments. Additionally, if you miss a payment or decide to cancel your service before your device is paid off, you may be charged hefty early termination fees by your carrier.


When deciding whether to purchase a cell phone outright or finance it via monthly installments, there are a few things you need to take into consideration. If you have the money available to pay for the phone all at once, buying outright may be the best option for you as it will save you money in the long run.

However, if you need to break up the cost of the phone into manageable payments, financing may be the way to go. Just be sure to read the fine print before signing up for any financing plans so that you know exactly what you're getting yourself into!

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