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JandJ1224

Member since 6/06 5911 total posts
Name: Jannette
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Verizon Upgrade
We have a family plan and in the past every 2 years we would be eligible for an upgrade where we would get a new phone, pay like $100-$150.
Now when I log in to upgrade you make payments of $30/month for 2 years to equal the retail value of iphone6. So there is no longer any benefit is that correct? If I upgrade a line with no upgrade available you just don't have the finance option?
Can someone confirm?
Message edited 12/18/2015 9:51:41 AM.
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Posted 12/18/15 9:51 AM |
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jerseypanda
Life is good.

Member since 1/07 9164 total posts
Name: Amanda
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Re: Verizon Upgrade
All of the carriers are moving away from subsidized phones. Meaning in the past, they used to discount the price of the phone and have you sign a 2 year contract. For example, the full cost of the iPhone might have been $600 but they would charge you $200. The companies would lose money on every phone they discounted because they pay full price for the devices to the phone manufacturers.
All carriers are now moving to leasing and installment billing options where customers pay a monthly fee for the phone over the course of 2 years. They usually discount the plans to balance the increased charge per month for the device.
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Posted 12/18/15 10:03 AM |
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Momma2015
Mommax2

Member since 12/12 6656 total posts
Name:
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Re: Verizon Upgrade
Posted by jerseypanda
All of the carriers are moving away from subsidized phones. Meaning in the past, they used to discount the price of the phone and have you sign a 2 year contract. For example, the full cost of the iPhone might have been $600 but they would charge you $200. The companies would lose money on every phone they discounted because they pay full price for the devices to the phone manufacturers.
All carriers are now moving to leasing and installment billing options where customers pay a monthly fee for the phone over the course of 2 years. They usually discount the plans to balance the increased charge per month for the device.
This exactly. It was super confusing to me at first. I had the guy at AT&T explain it 3 times before I said okay. With this "leasing" option, you get a discount on your data plan. If you opt to pay the discounted price of the phone up front, you lost that discount monthly. He did the math for me and it actually worked out slightly cheaper to pay monthly in the long run.
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Posted 12/18/15 10:07 AM |
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JandJ1224

Member since 6/06 5911 total posts
Name: Jannette
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Re: Verizon Upgrade
Its funny after I posted I see there is a similar thread about Sprint.
Doesn't look like my plan options are going down at all? So the lease vs. buy discussion, does that mean the $30 payments are lease and you return the phone after 2 years? Looks like discount of $100 off what they say retail is
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Posted 12/18/15 10:57 AM |
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jerseypanda
Life is good.

Member since 1/07 9164 total posts
Name: Amanda
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Re: Verizon Upgrade
Posted by JandJ1224
Its funny after I posted I see there is a similar thread about Sprint.
Doesn't look like my plan options are going down at all? So the lease vs. buy discussion, does that mean the $30 payments are lease and you return the phone after 2 years? Looks like discount of $100 off what they say retail is
I would suggest you go into a store or call to speak with someone.
I can only speak for Sprint, so I'm not exactly sure how it works for Verizon. With Sprint, you pay a slightly less amount per month for the lease of the phone than you would if you were doing installment billing. At the end of the lease, you have 3 options.
1) Turn the phone in and get another one. It's similar to leasing a car. You end up going from one lease to the next. 2) Pay off the "buyout fee". When you start the lease, they will tell you what the buyout amount would be at the end of the lease. You pay that amount when the lease is over and you own the phone. 3) Continue making monthly payments on the phone until the buyout fee is paid off.
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Posted 12/18/15 11:43 AM |
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JDubs
different, not less
Member since 7/09 13160 total posts
Name:
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Re: Verizon Upgrade
Posted by jerseypanda
All of the carriers are moving away from subsidized phones. Meaning in the past, they used to discount the price of the phone and have you sign a 2 year contract. For example, the full cost of the iPhone might have been $600 but they would charge you $200. The companies would lose money on every phone they discounted because they pay full price for the devices to the phone manufacturers.
All carriers are now moving to leasing and installment billing options where customers pay a monthly fee for the phone over the course of 2 years. They usually discount the plans to balance the increased charge per month for the device.
Yes this. The way the sales rep explained it to me was that we would basically be paying almost the same on our bill because even though the cost of the phone would be built into the bill monthly, the fee per line charge would go down as well. I think the only thing we had to pay up front was the taxes. Also I got charged a $40 upgrade fee in a future bill.
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Posted 12/18/15 12:20 PM |
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JandJ1224

Member since 6/06 5911 total posts
Name: Jannette
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Re: Verizon Upgrade
Posted by JDubs
Posted by jerseypanda
All of the carriers are moving away from subsidized phones. Meaning in the past, they used to discount the price of the phone and have you sign a 2 year contract. For example, the full cost of the iPhone might have been $600 but they would charge you $200. The companies would lose money on every phone they discounted because they pay full price for the devices to the phone manufacturers.
All carriers are now moving to leasing and installment billing options where customers pay a monthly fee for the phone over the course of 2 years. They usually discount the plans to balance the increased charge per month for the device.
Yes this. The way the sales rep explained it to me was that we would basically be paying almost the same on our bill because even though the cost of the phone would be built into the bill monthly, the fee per line charge would go down as well. I think the only thing we had to pay up front was the taxes. Also I got charged a $40 upgrade fee in a future bill.
So sick of these ridiculous plans! Thanks everyone. I will have to go in and see exactly what options are.
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Posted 12/18/15 12:34 PM |
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ali120206
2 Boys

Member since 7/06 17796 total posts
Name:
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Re: Verizon Upgrade
Posted by JandJ1224
Its funny after I posted I see there is a similar thread about Sprint.
Doesn't look like my plan options are going down at all? So the lease vs. buy discussion, does that mean the $30 payments are lease and you return the phone after 2 years? Looks like discount of $100 off what they say retail is
It's a lease to own - so if you don't upgrade before the 2 year period is up, you own the phone outright.
My DH switched to this plan because at the time, he was the only one up for a new phone and it ended up being a lot cheaper since I was still under my two year contract on my old phone. Now that I have gotten a new phone, the bill is about the same.
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Posted 12/18/15 12:50 PM |
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Momma2015
Mommax2

Member since 12/12 6656 total posts
Name:
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Re: Verizon Upgrade
Posted by ali120206
Posted by JandJ1224
Its funny after I posted I see there is a similar thread about Sprint.
Doesn't look like my plan options are going down at all? So the lease vs. buy discussion, does that mean the $30 payments are lease and you return the phone after 2 years? Looks like discount of $100 off what they say retail is
It's a lease to own - so if you don't upgrade before the 2 year period is up, you own the phone outright.
My DH switched to this plan because at the time, he was the only one up for a new phone and it ended up being a lot cheaper since I was still under my two year contract on my old phone. Now that I have gotten a new phone, the bill is about the same.
That's how it worked for AT&T- though you could choose to pay more monthly and get it in say 12 months or 18 months rather than 2 years. I hadn't upgraded my phone in awhile and they didn't ask for the old one back. In fact they offered to "buy" it back from me with a discounted iPad Mini.
Message edited 12/18/2015 1:02:17 PM.
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Posted 12/18/15 1:02 PM |
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Re: Verizon Upgrade
go do it at target!!! they have an official booth set up there and you get a $100 target giftcard
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Posted 12/18/15 1:21 PM |
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