A man with a surprised or confused expression looks at his mobile phone as the Orange, Vodafone and Movistar logos float around him with yellow question marks.
LIFESTYLE

The Secret of Movistar, Vodafone and Orange They Don't Want You to Know: You Lose a Lot

Major carriers often offer mobile phones at very attractive prices, but they won't always be profitable for you.

Movistar, Vodafone, and Orange are three of the largest and most well-known operators in Spain. Everyone knows that these companies strive to offer the best possible service to their customers, both in terms of coverage and devices. However, there is a secret that many don't know, which might make you think twice before choosing their mobile phone offers.

Instead of making you pay a large amount of money all at once for a state-of-the-art mobile phone, they offer the possibility of paying in installments. At first, this seems like a very attractive option since you won't have to shell out a large amount of money upfront. But, as often happens in these cases, appearances can be deceiving.

Why Do Movistar, Vodafone, and Orange Offer Phones in Installments?

The reason these companies offer phones in installments is simple. They try to attract more customers, especially those who can't or do not want to pay the full amount for the device at the time of purchase.

Background image of a person with a cell phone in their hands, writing, and another person with a doubtful gesture and some questions above their head
Analyze whether it's more cost-effective to buy the phone from your carrier or to do it on your own. | Vkstudio, Getty Images Signature

Instead of asking for a one-time payment, the operators divide the phone's price into monthly payments. This allows you to enjoy a cutting-edge device for an affordable monthly amount. However, this method is not always as beneficial as it seems.

Often, these types of promotions come with conditions that may not be so evident at first. However, in the long run, your wallet could suffer.

Everything These Phones Hide

One of the main conditions of the offers from Movistar, Vodafone, and Orange is that when acquiring a phone this way, you must sign a commitment contract. This contract is usually for a period of two years. This means that if you decide to switch operators early, you will be forced to pay a financial penalty.

These operators claim that the price of the phone in installments is cheaper than if you bought it on your own. But you have to consider the possible hidden costs. Many times, the final price of the phone acquired through the operator can be higher than if we buy it in a store.

The three logos of Orange, Vodafone and Movistar and in the background an image of a person with a mobile
In Movistar, Orange, and Vodafone stores, you'll have a wide variety of smartphones. | Rattanakun

This happens because the operators can inflate the price of the device, thus hiding the true cost of the device.

Another important point to consider is that, in most cases, the price of the phone is not the only thing you will pay. The operators usually offer rates that are tied to the purchase of the phone. And these rates can be more expensive than the options available separately.

At first, the offer may seem attractive. However, when adding the monthly rate and the phone installments, the total cost can be much higher than you imagine.

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