Extal1992
Level 1: Cadet

Switch to SIM Only Plan following Contract Expiry

Answered

Hi all,

 

I've been on a 24 month phone lease plan for a Samsung S10 5G and it expired as of the 7th of April. The plan details on My Telstra list me as "Out of contract", and offers me an option to upgrade. It also lists the Early Termination and Device Buy Out costs as $0.

 

I then go to upgrade my plan and select the $65 a month medium SIM Only plan. It directs me to a page where I'm asked whether I'm buying the plan new, or changing an existing plan and select the latter. I get brought to an online checkout screen where I again select the $65 a month plan. It then asks me at the bottom if I'm returning or keeping my device. I select keep, and it pops up saying I'll be charged a $378 buyout fee.

 

Am I doing something incorrectly here? Why does it tell me a $0 buyout on my account, but then try to slug me with it at the checkout? 

 

Thanks in advance Smiley Happy

1 ACCEPTED SOLUTION

Accepted Solutions
Jupiter
Level 25: The Singularity
Level 25: The Singularity
Accepted Solution

Re: Switch to SIM Only Plan following Contract Expiry

That would be correct as you are on a Lease Plan. You do not own the handset at the end of the contract (you have not been paying for it - only a service). The $378 buyout fee is the charge for you to buy the handset (buyout fee is approx 28% of as new value).

Never be afraid to back yourself when trying new things, just always make sure you have 3 escape routes if things go wrong.

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Jupiter
Level 25: The Singularity
Level 25: The Singularity
Accepted Solution

Re: Switch to SIM Only Plan following Contract Expiry

That would be correct as you are on a Lease Plan. You do not own the handset at the end of the contract (you have not been paying for it - only a service). The $378 buyout fee is the charge for you to buy the handset (buyout fee is approx 28% of as new value).

Never be afraid to back yourself when trying new things, just always make sure you have 3 escape routes if things go wrong.

View solution in original post

Extal1992
Level 1: Cadet

Re: Switch to SIM Only Plan following Contract Expiry

Appreciate the response. That makes sense. Although it doesn't explain why my account lists the buyout fee as $0 and only shows it when I'm about to checkout.

Jupiter
Level 25: The Singularity
Level 25: The Singularity

Re: Switch to SIM Only Plan following Contract Expiry

It's because on a Lease Plan, there is no buyout fee until you choose not to return the device. Its default assumption is that you are going to return it.

Never be afraid to back yourself when trying new things, just always make sure you have 3 escape routes if things go wrong.
Extal1992
Level 1: Cadet

Re: Switch to SIM Only Plan following Contract Expiry

Gotcha. Thanks for clearing that up. Have a lovely day Smiley Happy

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