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2018-10-27 10:44 PM
My grandpa is currently leasing a Samsung Galaxy A8 from Optus for $50 per month. He started leasing it early this year.
I was wondering whether when he chooses to upgrade after 12 months which is available with leasing whether he would be able to purchase his Galaxy A8 and keep it for myself to purchase off him. Basically, is there an option to pay it out after 12 months and keep it but still upgrade to a new handset.
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2018-10-28 08:50 AM - edited 2018-10-28 11:59 AM
In a nutshell yes. In practice you'll need to do the sums.
Are you sure you are leasing the phone? This is different from being on a plan and currently the Galaxy A8 has no option to lease. Its also the cheapest phone in Optus stable and unlikely to have any benefit from leasing.
If its just a normal plan then there's generally no penalty for cancelling. You just payout the remaining handset costs owed for the phone (which will also include any monthly subsidy OPtus is providing for being on the plan (usually $10-$20 a month extra). So that might be ~$25 for each month left in the contract.
If its a lease, you must wait for 12 months to pass (before then the penalties are prohibitive) and then you essentially terminate your contract. At that point you will have the option of purchasing the phone from Optus for an Optus decided 'fair market price'. or you can hand it back in in good value (i.e. no damage) and walk away with nothing. From your contract:
Termination and cancellation charges: In the last 12 months of your minimum term, you can choose to keep the phone and you will be charged the fair market value of the phone (which we will advise at that time), or if you return the phone to us and it is undamaged we will charge you a $99 early return fee and the lease plan cancellation fee for the remaining contract term.
FYI to just hand it back the a lease plan cancellation fee that starts at $540 on the cheapest ($40) plan, but if you are buying the phone from Optus you apparently don't have to pay it.
FWIW Optus leases are very bad value IMO with almost no upside and a lot of downside for the customer. In features they are identical to normal Optus phone plans but generally you walk away at the end of a lease plan with nothing while the normal plan leaves you with the phone (to keep or sell or whatever). You are also 100% responsible for the phone on a lease and it must be returned in good condition. If it is damaged, lost or stolen then you will have to keep paying the lease fees and must buy Optus a replacement handset as well. Note you should have some sort of insurance covering the phone for loss or damage under a lease if possible, otherwise take real good care of it.
The Galaxy A8 sells for around $600 new today so I would expect Optus to ask fo $400 or so? You'll have to decide if that's what you're happy to pay. You could keep the phone as is on lease as the 'fair market value' will presumably continue to drop as the lease continues. If you're intending to keep the phone anyway that might be a better value?
I take it you are looking to end up owning your grandpas handset and want your own plan and don't want to get you grandpa a replacement?
But check again if your grandpa really has a lease on this phone. You will also need to contact Optus LIVECHAT to discuss exact payout figures.