Which of these GSII deals would you go for?

Deal 2 imo, 12 month contracts are awesome.

But if he's paying an extra £84 over the life of the contract is it quite as good?

Even if he stopped using the 18 month contract after 12 months he'd end up saving £84 and could just leave the sim doing nothing whilst he's on another contract

So you dont actually save any money then?

By going with Deal 1? Yes as said you only pay £396 instead of the £480 of deal 2. Saving you £84 by going with Deal 1 instead of Deal 2. Both technically would only last you for 12 months.

I'm not sure how the cashback process would work when buying yourself out early comes into it though
 
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I'd go for deal 1 from those two, but as mentioned already, deal 2 was £100 for the handset not long ago, that's when I picked it up. :)
 
By going with Deal 1? Yes as said you only pay £396 instead of the £480 of deal 2. Saving you £84 by going with Deal 1 instead of Deal 2. Both technically would only last you for 12 months.

I meant cancelling a contract early not actually saving money. But as someone said you save the VAT so i guess save 20% on the remaining months.
 
I don't see how you could avoid paying the VAT on service that have already been fulfilled and includes a product.

Going for the cheaper contract is still a mighty better option:

  • you will receive your cashback within a few months, usually far earlier than 12 months
  • you get more allowance with the first deal
  • you will pay £5 less monthly
  • paying off the remainder after 12 months will cost you the same as the headset with the contract two so that pretty much cancels out
  • if you decide not to cancel your contract, you still have an ongoing plan with a good tariff
  • you get £30 more cashback on top of the savings

EDIT: scrap it, I confused redemption with the Quidco/Topcashback cashback.

You will usually have to carry on with your contract if you want to get the full cashback from redemption.

The other option is to just carry on paying until the end of the contract but I can see this being an inconvenience for some.
 
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I had to pick between these two deals myself last week when I was getting my SGS2 - which I've now got and is awesome by the way! Was already with T-Mobile so it made deal 1 a pain as I'd have to port my number away then back. But a day after I asked for the PAC code and literally about 5 mins before I pressed the buy button on deal 2 they phoned and offered the phone free on my current 18 month contract while keeping the Android data package, win! :)

By the way - on new contracts T-Mobile don't offer unlimited data - it's 500mb!
 
I don't see how you could avoid paying the VAT on service that have already been fulfilled and includes a product.

Terminating the contract early means you won't be receiving the remaining months' of line rental, or the associated inclusive allowance. As such you cannot be charged VAT on it. The handset is a separate entity entirely, it's a sweetener designed to entice you to sign up to the contract. If you read any line rental agreement you will see that this is stated quite clearly.

If you terminate your contract early then you pay the remaining line rental sans VAT. Some operators also add a discount as a kind of refund for the unused allowance. This used to be 30% on Vodafone, but it's recently changed to 2%. I'm not completely sure on other operators current terms.
 
I'm looking to upgrade to an S2 from my Legend as my contract has just expired. However in Spain the S2 is expensive and unless you go with a massive contract you wont get it for free.

With Vodafone they want 168 euros (£152) to go on a 24mth contract. I really did think they would offer me a better deal as a loyal customer.

Is it worth playing the old I'll cancel my contract trick for a cheaper upgrade on the S2. Oh and soz to highjack your thread a bit.
 
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