So not only do you have to pay up to a $325 ET fee to the carrier if you don't fulfill your 2 year contract, but ADD up to $400 more to Amazon!!
AmazonWireless Terms and Conditions
Instant Discount Policy
When you purchase your device with service from AmazonWireless.com, we automatically pass along an instant discount based on a commission paid to AmazonWireless by your wireless service carrier. The commission depends upon your continued service, and if you do not maintain your service for 181 days from the service activation date, AmazonWireless must return the commission to the carrier. Thus, this discount has been provided to you in good faith based on your agreement to (a) activate a new or extend an existing line of service for the device(s) with the carrier for two years, (b) maintain this line of service in good standing, and (c) not alter the line of service type other than adding an additional line of service to an individual account for at least 181 consecutive days.
The following are some scenarios where we may determine that you have not maintained your service and have not met the requirements listed above:
If your device with the carrier is not activated per Amazon's activation instructions within 14 days
If your service is canceled/disconnected before 181 days and you do not return the device(s) to Amazon
If a new individual or new family account is merged with or replaces a pre-existing account
If you transfer this equipment to another carrier's service or to another line in your family account and deactivate the line that Amazon established for your device
By accepting this Instant Discount Policy, you agree to repay $400 per smart phone or tablet and $200 per other device if you do not maintain your carrier service for 181 consecutive days from the service activation date. You also authorize us to collect that amount using any credit card we have on record for you. Amazon can periodically check your account status with the carrier to confirm your line of service is active and in good standing and thereby confirm you are in compliance with this policy.
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Click to collapse
Damn Amazon trying to get deep into pockets.
TravisBean said:
So not only do you have to pay up to a $325 ET fee to the carrier if you don't fulfill your 2 year contract, but ADD up to $400 more to Amazon!!
Click to expand...
Click to collapse
Don't buy phones for a penny (or any discount) with the intention of canceling your contact earlier than (I think, I didn't read your posted T&C's) six months and you won't have this problem.
Sympathy level: 0
I am pretty sure I'm wrong about the six months I mentioned earlier but my original point stands.
Sent from my SAMSUNG-SGH-I747 using Tapatalk 2
* noted
FlyGurl said:
Don't buy phones for a penny (or any discount) with the intention of canceling your contact earlier than (I think, I didn't read your posted T&C's) six months and you won't have this problem.
Click to expand...
Click to collapse
Was thinking about getting a galaxy s3 under contract, and just paying the $325 early termination fee, rather than buying one outright for $550. If you break your contract and pay the early termination fee, it doesn't hurt your credit rating.
TravisBean said:
Was thinking about getting a galaxy s3 under contract, and just paying the $325 early termination fee, rather than buying one outright for $550. If you break your contract and pay the early termination fee, it doesn't hurt your credit rating.
Click to expand...
Click to collapse
That wasn't my point.....And you know it.
Sent from my HTC One X using Tapatalk 2
FlyGurl said:
That wasn't my point.....And you know it.
Sent from my HTC One X using Tapatalk 2
Click to expand...
Click to collapse
But it was mine....................
TravisBean said:
Was thinking about getting a galaxy s3 under contract, and just paying the $325 early termination fee, rather than buying one outright for $550. If you break your contract and pay the early termination fee, it doesn't hurt your credit rating.
Click to expand...
Click to collapse
So just don't try to get phones for less than they cost and it's a non-issue? Buyers definitely need to beware...
That's pretty normal for lots of places. In the UK you get a contract for 12, 18 or 24 months and the phone is charged on a sliding scale, but you're tied to that contract for that time. For example, I got my S2 in July 2011. It was free, but on a 24 month contract where I pay about £30 a month for a bunch of free calls, texts and data. If I were to break the contract at any time then they'd simply multiply my monthly contract cost by the number of months I had left and charge me that (or maybe a little less).
I've only ever had 1 phone for virtually nothing and that was because they changed the prices on the contract after I'd signed up, and the change went beyond some threshold they were allowed to go over. 1000's of people across the UK cancelled their contracts legally and kept their phones. I'd had a HTC Touch HD for about 3 months on contract and I think I'd paid about £75 at that point.
But anyway, I digest.
Pay for your phones you cheapskate
063_XOBX said:
So just don't try to get phones for less than they cost and it's a non-issue? Buyers definitely need to beware...
Click to expand...
Click to collapse
Nothing wrong with trying to look for the best possible deal, even if it means breaking your contract (provided you pay the early termination fee).
My point is that Amazon is double dipping by adding their early termination fee in addition to the carrier's early termination fee.
Amazons price for the S3 is only $20 less than Radio Shack, yet they are willing to charge you $400 more if you break your contract.
As the thread title states "Buyer Beware"
Archer said:
Pay for your phones you cheapskate
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Click to collapse
Guilty as charged, Cheapskate is my middle name !!
TravisBean said:
Nothing wrong with trying to look for the best possible deal, even if it means breaking your contract (provided you pay the early termination fee).
My point is that Amazon is double dipping by adding their early termination fee in addition to the carrier's early termination fee.
Amazons price for the S3 is only $20 less than Radio Shack, yet they are willing to charge you $400 more if you break your contract.
As the thread title states "Buyer Beware"
Guilty as charged, Cheapskate is my middle name !!
Click to expand...
Click to collapse
Ah right, so you do have early termination fees with carriers then, but Amazon are banging their own on top of it. In that case totally disregard my previous post (except the cheapskate bit)
TravisBean said:
Nothing wrong with trying to look for the best possible deal, even if it means breaking your contract (provided you pay the early termination fee).
My point is that Amazon is double dipping by adding their early termination fee in addition to the carrier's early termination fee.
Amazons price for the S3 is only $20 less than Radio Shack, yet they are willing to charge you $400 more if you break your contract.
As the thread title states "Buyer Beware"
Guilty as charged, Cheapskate is my middle name !!
Click to expand...
Click to collapse
No they aren't. What you quoted clearly explains the fee. If you cancel before 6 months is up, they have to return their commission to the carrier, so they charge you for it. What is so hard to understand? Besides most people have no problem keeping a phone active for 6 short months.
see boot animation without rebooting
To the forum moderator, if this is in the wrong forum, please relocate it.
As I recall, under the family plan I had before switching to the Shared Data Plan, four devices sharing 10gb data with unlimited talk and text, I could upgrade any of the four smart phones with a two year extension to my contract and my monthly cost would not change. Under the new plan, your monthly cost will increase by $25 for the length of the two year contract. That's $600. Add the $100 I paid for my Galaxy s5, that means I will be paying $700 for the phone.
retnuh said:
To the forum moderator, if this is in the wrong forum, please relocate it.
As I recall, under the family plan I had before switching to the Shared Data Plan, four devices sharing 10gb data with unlimited talk and text, I could upgrade any of the four smart phones with a two year extension to my contract and my monthly cost would not change. Under the new plan, your monthly cost will increase by $25 for the length of the two year contract. That's $600. Add the $100 I paid for my Galaxy s5, that means I will be paying $700 for the phone.
Click to expand...
Click to collapse
Yeah, they got us with that one too. At first they told us we could upgrade so when my son married, we added his wife and she got the Note 3. We though it should be the 15 per month and we even had it in writing but when the first bill came it was 40 instead of 15. Of course I called and complained and they told me that was how it worked but they could give me a discount for a few months. Since I had it in writing I escalated it to the "Presidents Office" and I ended up getting 18 months credit so she only had to pay 25 for 6 months.
I think they are very deceptive about this or they really didn't understand how the program worked. It was very frustrating.
retnuh said:
To the forum moderator, if this is in the wrong forum, please relocate it.
As I recall, under the family plan I had before switching to the Shared Data Plan, four devices sharing 10gb data with unlimited talk and text, I could upgrade any of the four smart phones with a two year extension to my contract and my monthly cost would not change. Under the new plan, your monthly cost will increase by $25 for the length of the two year contract. That's $600. Add the $100 I paid for my Galaxy s5, that means I will be paying $700 for the phone.
Click to expand...
Click to collapse
It is a little confusing, but I had the opposite experience. It actually seems like a good deal to me. In the old days, once your contract was up, you'd still pay an inflated price for service, so it made financial sense to upgrade at every opportunity if you don't mind being locked in for another 2 years. Now, once your contract is up, you stop paying for the phone.
When I switched myself online, I did a ton of research on the actual cost because I knew the original shared data plans' pricing would have cost me a ton more than I was already paying, but I knew they had restructured them. I personally did not miss the part on the web page about the cost being $25 less if you brought your own phone, but I could see that being glossed over by a sales rep.
Since I own my GS5 outright, I am ahead by $25/mo now that I switched to the new plan. It's still an outrageous amount to pay for data but at least I'm not paying $25 extra for nothing, in perpetuity. The funny thing is my contract should have a few months left but perhaps because I was using the GS5 when I switched, it ended early. I'm not complaining.
So yeah, you're paying $700 over 2 years for a phone that would cost you $650 up front with no contract. Better interest rate than you'd get on a credit card. Did you think we were really getting those phones for "free" before?
Its because the price is for the SERVICE, not the device. Your device is extra. If you buy phones outright, (full price, no subsidy) then you get the cheaper price, no addon per month. Like what I did, 120/mo for shared 10gb, 3 lines, unlimited talk & text. But that doesn't include phones, so I bought mine outright so it would stay 120/mo. Or you can buy phones cheap like what 99.9% of people assume is "normal" price, pay the subsidy and the monthly charges added on. Read the details on your service contract instead of just signing the line.:cyclops:
retnuh said:
To the forum moderator, if this is in the wrong forum, please relocate it.
As I recall, under the family plan I had before switching to the Shared Data Plan, four devices sharing 10gb data with unlimited talk and text, I could upgrade any of the four smart phones with a two year extension to my contract and my monthly cost would not change. Under the new plan, your monthly cost will increase by $25 for the length of the two year contract. That's $600. Add the $100 I paid for my Galaxy s5, that means I will be paying $700 for the phone.
Click to expand...
Click to collapse
that is the "Next" plan you can upgrade every year but your paying full price for the phone only in payments not all at once.
jdock said:
In the old days, once your contract was up, you'd still pay an inflated price for service
Click to expand...
Click to collapse
All I did was to call them up saying that my contract is up, and I would like to switch to prepaid cos its cheaper, and she gave me $25 off for the next 12 months, and no contract extension, just to retain me.
Just do NEXT, it's a lot cheaper long term and you get two phones for the price of one! I got my S5 on next and got one for my sister also, we pay $30 a month for our device cost, and get a $25 bill discount for each line. Our total for three lines on a 10GB Shared Plan is $190 including both devices. We have a third line for mom with a Moto G. Our total service cost is $130.
Hey all,
I went out and got the at&t s6 yesterday and I hopped onto my wife's family plan. While there, they were successful in convincing me the AT&T Next payment plan is the way to go, compared to a 2 year contract.
Next: $23 monthly for phone, $15 monthly for service charge, $40 up front payment for tax.
2 year contract: $200 for phone, $40 monthly for 2 year contract, $40 one time initiation fee.
Doing the math in store convinced me that after 2 years is done in both situations, the Next plan was cheaper. However, I remember reading in the past that monthly payment plans are for suckers. Any ideas?
It's about convenience in my opinion. Not everyone has 684-784 for a new S6. $37/mo is a reasonable and usually unnoticeable. I also think you forgot to mention the $15 monthly smartphone service charge is $40 if you're on contract. It's a minute difference if any. The only way you got hosed is the locked bootloader. But this phone is golden. I don't miss root at all
eddiekang said:
Hey all,
I went out and got the at&t s6 yesterday and I hopped onto my wife's family plan. While there, they were successful in convincing me the AT&T Next payment plan is the way to go, compared to a 2 year contract.
Next: $23 monthly for phone, $15 monthly for service charge, $40 up front payment for tax.
2 year contract: $200 for phone, $40 monthly for 2 year contract, $40 one time initiation fee.
Doing the math in store convinced me that after 2 years is done in both situations, the Next plan was cheaper. However, I remember reading in the past that monthly payment plans are for suckers. Any ideas?
Click to expand...
Click to collapse
It really depends on how long you keep your phones or if you want to be able to upgrade very often. If you keep your phone for more then 2 years then yes next is cheaper because once you pay it off then you will continue to pay $15/month instead of the $40/month if you signed a 2 year contract.
If you want to upgrade quicker then you need to choose the more expensive next plan so you can upgrade sooner.
eddiekang said:
Hey all,
I went out and got the at&t s6 yesterday and I hopped onto my wife's family plan. While there, they were successful in convincing me the AT&T Next payment plan is the way to go, compared to a 2 year contract.
Next: $23 monthly for phone, $15 monthly for service charge, $40 up front payment for tax.
2 year contract: $200 for phone, $40 monthly for 2 year contract, $40 one time initiation fee.
Doing the math in store convinced me that after 2 years is done in both situations, the Next plan was cheaper. However, I remember reading in the past that monthly payment plans are for suckers. Any ideas?
Click to expand...
Click to collapse
When I calculated it out, you end up paying more for the phone when you switch to the Next plan, which is why they are trying to get people to switch.
I've dealt with them with this and they do everything they can to make it seem cheaper, but I don't buy it.
---------- Post added at 01:22 PM ---------- Previous post was at 01:20 PM ----------
xeni said:
It really depends on how long you keep your phones or if you want to be able to upgrade very often. If you keep your phone for more then 2 years then yes next is cheaper because once you pay it off then you will continue to pay $15/month instead of the $40/month if you signed a 2 year contract.
If you want to upgrade quicker then you need to choose the more expensive next plan so you can upgrade sooner.
Click to expand...
Click to collapse
I don't think you ever pay the phone off, you just pay the monthly fee, until you hit the minimum amount to upgrade. However, it divides the full price of the phone over 30 months.
Also, you have to make sure the phone is perfect when you go to trade it in or else you will run into issues with them accepting the phone as part of your upgrade...
Edit: I read up a little bit more on it, they are offering discounts on data plans depending on if you have Next or not. I can see this maybe factoring into the pricing. I haven't priced it out since the first time I got asked to switch to a Next plan. The real advantage from the program is not being tied down to a 2 year contract.
Do you mind explaining the calculation? For me, it's
Next 30: 24 x 23 = 552 for the phone
15 x 24 = 360 service fee
~40 up front tax for the phone. Total after 24 months= 952
If i want to buy the phone outright after 24 months, i pay the difference on the phone which at that point would be 680-552 = 128.
952 + 128 = 1080 total after 2 years and i own the phone.
2 year contract: 40 x 24 = 960 monthly service fee
40 initiation fee + 200 subsidized phone cost= 240
960 + 240 = 1200 total after 2 years and i own the phone.
(This doesn't even include taxes throughout 2 years.)
What am I missing? Thanks for your replies.
yoman258 said:
When I calculated it out, you end up paying more for the phone when you switch to the Next plan, which is why they are trying to get people to switch.
I've dealt with them with this and they do everything they can to make it seem cheaper, but I don't buy it.
---------- Post added at 01:22 PM ---------- Previous post was at 01:20 PM ----------
I don't think you ever pay the phone off, you just pay the monthly fee, until you hit the minimum amount to upgrade. However, it divides the full price of the phone over 30 months.
Also, you have to make sure the phone is perfect when you go to trade it in or else you will run into issues with them accepting the phone as part of your upgrade...
Click to expand...
Click to collapse
yoman258 said:
When I calculated it out, you end up paying more for the phone when you switch to the Next plan, which is why they are trying to get people to switch.
I've dealt with them with this and they do everything they can to make it seem cheaper, but I don't buy it.
---------- Post added at 01:22 PM ---------- Previous post was at 01:20 PM ----------
I don't think you ever pay the phone off, you just pay the monthly fee, until you hit the minimum amount to upgrade. However, it divides the full price of the phone over 30 months.
Also, you have to make sure the phone is perfect when you go to trade it in or else you will run into issues with them accepting the phone as part of your upgrade...
Click to expand...
Click to collapse
Like I said it really depends on what you want to do. I just got he Galaxy S6 (after upgrading from my M8 AT&T Next 12 and buying off the phone so I can resell it) on the AT&T next plan and this is how it works out, just like it did with the M8.
1. Instead of paying $40 a month per line I pay $15 so I save $25 on the monthly service plan.
2. If I choose the AT&T Next 12 (20 Payments of 34.25 = 685 + tax), I can make 12 payments and then upgrade after 12 payments and get a new phone and start a new payment plan depending on how much the phone is. Or I can choose to make the full 20 payments and keep the phone and maintain the $15/month line charge. Or I can pay off the entire phone at anytime and keep the $15/month charge.
3. If you buy this on contract it works out like this. 24 x $40 = $960 + 200 = $1160, and you continue to pay $40 a month after the 2 years.
4. If you buy this on AT&T Next 18 which allows you to pay it off over 2 years just like the contract term then it works out like this. 24 x $28.55 = 685.2+tax ~ 740 or so + 15/month x 24 = $1100, however after the 2 years are up you continue to pay $15/month and not $40 a month so if you keep your phone past the 2 year mark you are saving $25/month where as with the contract you wouldn't be.
eddiekang said:
Do you mind explaining the calculation? For me, it's
Next 30: 24 x 23 = 552 for the phone
15 x 24 = 360 service fee
~40 up front tax for the phone. Total after 24 months= 952
If i want to buy the phone outright after 24 months, i pay the difference on the phone which at that point would be 680-552 = 128.
952 + 128 = 1080 total after 2 years and i own the phone.
2 year contract: 40 x 24 = 960 monthly service fee
40 initiation fee + 200 subsidized phone cost= 240
960 + 240 = 1200 total after 2 years and i own the phone.
(This doesn't even include taxes throughout 2 years.)
What am I missing? Thanks for your replies.
Click to expand...
Click to collapse
You've hit the nail on the head. AT&T Next/Verizon Edge are legit. It's a reorganizing of costs. Instead of getting the phone at a massive discount and paying a higher amount on your bill, you are now paying more for the phone with monthly installments added to your bill in order to earn/retain a billing discount. If you calculate almost any phone with a 10gb or higher data plan, NEXT will save a minimum $140 every time.
Sent from my SAMSUNG-SM-N910A using Tapatalk
If you're on a mobile share plan, it definitely works out in your favor to use Next. Otherwise you're paying a premium for the service itself. I think it's compelling that once you've made your payments, your monthly bill goes down, whereas on 2 year, if you decide to hang on to your phone longer, you're paying to keep your device.
Next is cheaper for those that like to get their phones at launch price. If you wait for one of Amazon's $1 deals or Bestbuy deals, then the contract way is not so bad due to less money up front.
I've been trying to figure this out myself. They already signed me for the Next24, but I'm still within the time period to make a change. I'm not sure if the cost/benefit ratio works for me in my circumstances. Perhaps one of you guys that understands the voodoo can help me figure it out.
Let's take the 1G plan as an example. First, I'm going to examine the costs, then I want to ask for your help to understand the mechanics of the Next plan.
NOTE: Because of the different tie periods between the two plans, I adjusted the 2 year plan for another six months of cost to more accurately compare.
Next:
$25 - 1g Data
$40 - Voice
-$15 Discount
$50/month
$23.64 Phone Finance
= $2209 total ($1500 service plan cost for 30 months + $709.20 in phone payments)
2 Year Contract
$25 - 1g Data
$40 - Voice
$200 Phone
= $2190 total ($1950 in service plan costs for 30 months + $200 phone cost + $40 renewal/upgrade fee
There seems to be only about $20 difference between the two. What matters to me is what happens in the event I want to upgrade next April to a new phone with the Next plan, or what happens at the end of my Next contract.
Upgrade: My understanding is that in the event I want to upgrade to a newer phone in a year, I pay off the phone balance, turn in the phone and presuming it's in good condition, I get the latest-and-greatest. I can only do this once in any given Next plan, but if I do, there's a question about who owns the phone (see below).
Contract End: Who owns the phone? In the case of the traditional 2-year contract, I know that the phone is mine. But under the Next plan, if I get to the end of the 30 month period and have paid off the phone (whether I've upgraded or not), is it mine to keep or do I have to turn it in?
Once you make all the payment, the phone is yours. If you upgrade early without paying it off, they get the phone back as a trade in. You have to make a minimum number of payments before you can upgrade which I believe is based on which next program you choose. Course after you've had it a while you could then pay it off and upgrade. Would be better than paying all up front.
BillTheCat said:
I've been trying to figure this out myself. They already signed me for the Next24, but I'm still within the time period to make a change. I'm not sure if the cost/benefit ratio works for me in my circumstances. Perhaps one of you guys that understands the voodoo can help me figure it out.
Let's take the 1G plan as an example. First, I'm going to examine the costs, then I want to ask for your help to understand the mechanics of the Next plan.
NOTE: Because of the different tie periods between the two plans, I adjusted the 2 year plan for another six months of cost to more accurately compare.
Next:
$25 - 1g Data
$40 - Voice
-$15 Discount
$50/month
$23.64 Phone Finance
= $2209 total ($1500 service plan cost for 30 months + $709.20 in phone payments)
2 Year Contract
$25 - 1g Data
$40 - Voice
$200 Phone
= $2190 total ($1950 in service plan costs for 30 months + $200 phone cost + $40 renewal/upgrade fee
There seems to be only about $20 difference between the two. What matters to me is what happens in the event I want to upgrade next April to a new phone with the Next plan, or what happens at the end of my Next contract.
Upgrade: My understanding is that in the event I want to upgrade to a newer phone in a year, I pay off the phone balance, turn in the phone and presuming it's in good condition, I get the latest-and-greatest. I can only do this once in any given Next plan, but if I do, there's a question about who owns the phone (see below).
Contract End: Who owns the phone? In the case of the traditional 2-year contract, I know that the phone is mine. But under the Next plan, if I get to the end of the 30 month period and have paid off the phone (whether I've upgraded or not), is it mine to keep or do I have to turn it in?
Click to expand...
Click to collapse
beaverslayer said:
Once you make all the payment, the phone is yours. If you upgrade early without paying it off, they get the phone back as a trade in. You have to make a minimum number of payments before you can upgrade which I believe is based on which next program you choose. Course after you've had it a while you could then pay it off and upgrade. Would be better than paying all up front.
Click to expand...
Click to collapse
OK, so let's say I qualify for an upgrade at 12 months. If I upgrade to a new phone, I pay off the remaining balance, turn in the old phone (let's use the S6 as an example) and get a new phone to replace it, say it'll be the S7. Do I have to begin making payments on the new phone, or is it mine to keep?
BillTheCat said:
OK, so let's say I qualify for an upgrade at 12 months. If I upgrade to a new phone, I pay off the remaining balance, turn in the old phone (let's use the S6 as an example) and get a new phone to replace it, say it'll be the S7. Do I have to begin making payments on the new phone, or is it mine to keep?
Click to expand...
Click to collapse
Let's say you get the AT&T Next 12 which is 20 payments at $34.25 for the Galaxy S6. After 12 payments you can give back the S6 and get the S7 and the payments start over depending on which phone you pack along with which Next plan. If you keep the phone for the full 20 payments the phone becomes yours and you can keep it. Let's say you want to upgrade your phone after 10 payments (12 is minimum), then you would have to pay an additional 20 payments at 34.25 before you can upgrade your phone and give back the S6.
xeni said:
Let's say you get the AT&T Next 12 which is 20 payments at $34.25 for the Galaxy S6. After 12 payments you can give back the S6 and get the S7 and the payments start over depending on which phone you pack along with which Next plan. If you keep the phone for the full 20 payments the phone becomes yours and you can keep it. Let's say you want to upgrade your phone after 10 payments (12 is minimum), then you would have to pay an additional 20 payments at 34.25 before you can upgrade your phone and give back the S6.
Click to expand...
Click to collapse
Alright, let's go with your scenario because I still have a week to change my mind.
What I hear you saying is that if I were to go with the Next 12 plan and upgrade at one year, it will look like this for an (imaginary) S7, presuming it will be the same price as this year's phone:
$411 for the S6 phone RENTAL FEE over the course of a year (because I'd be turning in the phone)
+ $685 for the cost of the S7 which would require a NEW F'n CONTRACT that resets all over for another 20 months of payments
= 1096 for a next generation phone that would retail for $685 on a straight purchase by the end of year two
I see no reason why anyone would want to bother. It would make more sense to just buy the phone outright from Amazon at a discount (because AT&T charges more - this is the only business I can think of where the retailers charge more than the manufacturer!) and keep the old phone as a backup or sell it on Ebay.
Do I have it right?
BillTheCat said:
Alright, let's go with your scenario because I still have a week to change my mind.
What I hear you saying is that if I were to go with the Next 12 plan and upgrade at one year, it will look like this for an (imaginary) S7, presuming it will be the same price as this year's phone:
$411 for the phone RENTAL FEE over the course of a year (because I'd be turning in the phone)
+ $685 for the cost of the S7 which would require a NEW F'n CONTRACT that resets all over for another 20 months of payments
= 1096 for a next generation phone that would retail for $685 on a straight purchase by the end of year two
I see no reason why anyone would want to bother. It would make more sense to just buy the phone outright from Amazon at a discount (because AT&T charges more - this is the only business I can think of where the retailers charge more than the manufacturer!) and keep the old phone as a backup or sell it on Ebay.
Do I have it right?
Click to expand...
Click to collapse
If you buy out the phone today at $685 and then buy the S7 at $685 (presuming the price stays the same) then you are paying $1470 over the course of 1 year and you would be owning both handsets outright. When you make 12 payments at 34.25 and you want to upgrade you have the option of paying off the remainder of the loan (8 payments at 34.25) and keeping the phone so you are back at $1470.
Also good luck finding the phone on sale on Amazon for the forseable future and remember the more you wait the less months you have until S7 comes out. So if you wait until July for an S6 sale on Amazon you are now 3-4 months back and the phone is 3-4 months old meaning that you are $105-140 back on payments so technically the phone is only worth $545-580.
Either way you look at it, you are paying for the phone full price, whether you are buying it outright today or paying it off over 20 months (unless you give it back after 12 months and get a new phone and start a new payment plan).
BillTheCat said:
Alright, let's go with your scenario because I still have a week to change my mind.
What I hear you saying is that if I were to go with the Next 12 plan and upgrade at one year, it will look like this for an (imaginary) S7, presuming it will be the same price as this year's phone:
$411 for the S6 phone RENTAL FEE over the course of a year (because I'd be turning in the phone)
+ $685 for the cost of the S7 which would require a NEW F'n CONTRACT that resets all over for another 20 months of payments
= 1096 for a next generation phone that would retail for $685 on a straight purchase by the end of year two
I see no reason why anyone would want to bother. It would make more sense to just buy the phone outright from Amazon at a discount (because AT&T charges more - this is the only business I can think of where the retailers charge more than the manufacturer!) and keep the old phone as a backup or sell it on Ebay.
Do I have it right?
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You are getting what you are paying for. You are buying on a payment plan. You wouldn't go out and buy a new car this year with 60 months of payment ahead of you and trade it in after one year and not expect to loose money in the deal now would you. You are making the decision to trade it in before it's paid for, not AT&T.
---------- Post added at 05:42 PM ---------- Previous post was at 05:39 PM ----------
I've always heard the cheapest way to get a phone ls to sign a 2 year contract then go home and call AT&T and say you want to do an early termination which cost roughly $350, which means you at out about $550 and get to keep the phone.
beaverslayer said:
Once you make all the payment, the phone is yours. If you upgrade early without paying it off, they get the phone back as a trade in. You have to make a minimum number of payments before you can upgrade which I believe is based on which next program you choose. Course after you've had it a while you could then pay it off and upgrade. Would be better than paying all up front.
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I'm thinking that's what I'll do. I guess I'll ride it out and see what the landscape looks like next year.
xeni said:
If you buy out the phone today at $685 and then buy the S7 at $685 (presuming the price stays the same) then you are paying $1470 over the course of 1 year and you would be owning both handsets outright. When you make 12 payments at 34.25 and you want to upgrade you have the option of paying off the remainder of the loan (8 payments at 34.25) and keeping the phone so you are back at $1470.
Either way you look at it, you are paying for the phone full price, whether you are buying it outright today or paying it off over 20 months (unless you give it back after 12 months and get a new phone and start a new payment plan).
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I guess it just seems that $411 for one year's use seems a tad steep considering for a couple hundred more, you can use it forever. Though there is the benefit of the lower pricing on the Next plan compared to the 2 year contract.
beaverslayer said:
You are getting what you are paying for. You are buying on a payment plan. You wouldn't go out and buy a new car this year with 60 months of payment ahead of you and trade it in after one year and not expect to loose money in the deal now would you. You are making the decision to trade it in before it's paid for, not AT&T.
---------- Post added at 05:42 PM ---------- Previous post was at 05:39 PM ----------
I've always heard the cheapest way to get a phone ls to sign a 2 year contract then go home and call AT&T and say you want to do an early termination which cost roughly $350, which means you at out about $550 and get to keep the phone.
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Click to collapse
An interesting strategy. I might consider it, but it seems 'dishonest' in some strange way. And I'm sure there will be repurcussions, I wonder what the chance of getting a new plan might be after cancelling another one.
BillTheCat said:
I'm thinking that's what I'll do. I guess I'll ride it out and see what the landscape looks like next year.
I guess it just seems that $411 for one year's use seems a tad steep considering for a couple hundred more, you can use it forever.
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You can buy it out for the remainder of the balance, you don't have to give it back if you pay it off. After 12 months you have a few choice, either give it back and get a new one, buy out the remainder of the balance or continue your payments until you have it completely paid off and it is yours to keep.
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BillTheCat said:
I'm thinking that's what I'll do. I guess I'll ride it out and see what the landscape looks like next year.
I guess it just seems that $411 for one year's use seems a tad steep considering for a couple hundred more, you can use it forever. Though there is the benefit of the lower pricing on the Next plan compared to the 2 year contract.
An interesting strategy. I might consider it, but it seems 'dishonest' in some strange way. And I'm sure there will be repurcussions, I wonder what the chance of getting a new plan might be after cancelling another one.
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Not dishonest at all. That's a reason they have ETF. You won't need a new contract. You shouldn't want one either. You'll be paying for the service month to month as people do when their contracts expire.
It's actually brilliant and I'm an idiot for not thinking of it myself
DigitalUnderground said:
Not dishonest at all. That's a reason they have ETF. You won't need a new contract. You shouldn't want one either. You'll be paying for the service month to month as people do when their contracts expire.
It's actually brilliant and I'm an idiot for not thinking of it myself
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I would worry that they might not start new service with you if you were to cancel, even if you did pay the ETF.
I suppose I could just change my Next 24 plan to a Next 12, accelerating the payments, pay the 'balloon' at a year to own the phone, and see what things look like at that point. It seems there's no point in buying the phone from the carrier anymore.