Vodafone now lets you pay off a phone over 4 years. Here’s how it works
Key takeaways
- Vodafone is the first Australian telco to offer 48-month (4-year) phone repayment plans, alongside its shorter 12-, 24- and 36-month options.
- You'll need to pass a credit check and pair your phone repayment with a Vodafone SIM-only plan.
- You can upgrade after 12 months for a fee if you have Upgrade and Protect Plus, or wait until the final 12 months of the plan to upgrade for free, with your remaining balance waived.
Vodafone is now offering 48-month phone plans, giving customers a new way to spread the cost of a pricey phone over 4 years.
Previously, Vodafone, Optus and Telstra let you pay off a phone over 12, 24 or 36 months. Vodafone's new 48-month option stretches that repayment period out even further.
The new option is available now on phones and tablets. You'll need to pass a credit check and pair your phone repayment with one of Vodafone's SIM-only plans.
There's no lock-in contract. You'll just need to pay off the remaining cost of the phone if you decide to leave before it's fully paid off.
Why is Vodafone offering a 48-month phone repayment plan?
According to Vodafone's latest research, Aussies are keeping their smartphones for longer, with the number of people using a phone for 4 years or more doubling since 2021.
That's happening as flagship phones get more expensive, with plenty now costing more than $2,000, including the latest iPhones.
Because the repayments are interest-free, you won't pay more overall by choosing the longer term. You're simply taking longer to pay off the same amount.
Here's a look at some examples:
| 12 months | 24 months | 36 months | 48 months | Upfront cost (base model) | |
|---|---|---|---|---|---|
| iPhone 18 Pro | $174.92 | $87.46 | $58.31 | $43.73 | $2,099 |
| iPhone Duo | $291.58 | $145.79 | $97.19 | $72.90 | $3,499 |
| Samsung Galaxy Z Fold 8 | $224.92 | $112.46 | $74.97 | $56.23 | $2,699 |
| Google Pixel 11 Pro XL | $174.92 | $87.46 | $58.31 | $43.73 | $2,099 |
James Gully, Acting Group Executive Consumer at Vodafone, said the new repayment option reflects changing consumer habits and growing pressure on household budgets.
"Australians are holding onto their phones for 4 years or more, but until now they haven't had the repayment options to match," Gully said.
The telco industry hasn't moved, so we're moving first. Our new 48-month repayment plan gives Australians another way to manage the cost of technology, with more flexibility and lower monthly repayments.
Can you upgrade early on Vodafone's 4-year phone plan?
Yes, but you'll need to add Upgrade and Protect Plus for $14.99 a month.
Once you've had the phone for 12 months, you can upgrade early for an additional fee.
Or, if you're in the final 12 months of your repayment plan, you can upgrade without the early upgrade fee and have your remaining device repayments waived.
Is a 48-month plan too long for some, though?
We're pretty sure opinions will be divided on this one.
Vodafone's research aligns with what Finder insights analyst Georgie Greentree has observed about the 'slowgrading' trend, where phones are getting better, batteries aren't degrading as quickly as they used to, and screens are tougher.
"I think the 48-month term aligns with the 'slowgrading' trend," says Greentree.
"As a result, people are holding onto their phones for longer. That means 36 months is now a relatively short amount of time to keep a phone before upgrading, while 48 months is more reflective of when people might naturally feel the need to upgrade."
But not everyone is sold on the idea of a 4-year phone plan.
Finder senior PR lead Kate Boddington recently signed up to a 36-month repayment plan, which she says works better for her household budget.
"I struggled with the idea of 36 months, but it was less cost prohibitive," she says. "I don't think I would have gone for 48 months if that was an option because I would like to think I could upgrade before then. I certainly would have run the scenario, though."
Editorial lead Sarah Megginson shared similar sentiments.
"I got my phone on a 36-month plan. We still have 16 months to go, and it's $55 a month, which I hate. Two years feels like much less of a burden, but phones are so expensive these days." Megginson said.
"A two-year plan would have been $85 a month. A four-year plan feels like such a long time. That's like taking out a car loan."
Sources
Ask a question