Hi guys, what am I missing here? I did the math (which I am assuming is correct....??) on my verizon Edge stuff and it seems like Edge is actually somewhat cheaper, which has me concerned because what am I missing...nothing is ever cheaper!
My plan is 10gb share (we have about 6 lines on it) so i'm going to break it down and see if someone can confirm or tell me i'm missing something.
The phone is broken down into 20 monthly payments, and you're paying the tax of the full amount as well (my state is 6%). If I wanted the 64gb iPhone 6, it is $749 + tax which equals $793.94. That divided by 20 is $39.70 a month for 20 months.
Now, the usual access is $40 a month but with a $25 dollar discount it would be $15 a month (I am negating the 10gb line fee since that is going to be the same no matter what) that equals $300 for 20 months or $360 for 24 months. Total would be $1,153.94 assuming they keep my $15 fee for the remainder of the 4 months, if not (going back up to the $40) it would be a total of $1,193.94. Now, I understand that trading it in at 60% paid off or whatever to get the new upgrade wouldn't be the most wise in most cases, I am not going to do the math because I am not going to be upgrading that way or if I do, I will be purchasing the phone at 100% price to either give to someone else on my line.
Now, comparing that to buying the phone on a 2yr contract with the same pricing. $299 + 6% (in MI we only pay tax on the actual sale price) is $316.94. $40 for 24 months is $960. The total in that equation is $1,276.94, more than the $1,193.94.
It seems like if you are going to be stuck in a contract for 20 months or 2 years, the logical and cheaper choice would be to do the Edge. All everyone talks about is how bad the edge deal is (is this only for 1 year upgrades etc?). Sure my monthly bill will be $14.70 higher but in the long run it would save me money (I could use the $300 I was planning to originally buy the phone with to offset that cost monthly).
So sorry for the huge long post with lots and lots of numbers, but really just trying to make sure I am doing the best thing.
My plan is 10gb share (we have about 6 lines on it) so i'm going to break it down and see if someone can confirm or tell me i'm missing something.
The phone is broken down into 20 monthly payments, and you're paying the tax of the full amount as well (my state is 6%). If I wanted the 64gb iPhone 6, it is $749 + tax which equals $793.94. That divided by 20 is $39.70 a month for 20 months.
Now, the usual access is $40 a month but with a $25 dollar discount it would be $15 a month (I am negating the 10gb line fee since that is going to be the same no matter what) that equals $300 for 20 months or $360 for 24 months. Total would be $1,153.94 assuming they keep my $15 fee for the remainder of the 4 months, if not (going back up to the $40) it would be a total of $1,193.94. Now, I understand that trading it in at 60% paid off or whatever to get the new upgrade wouldn't be the most wise in most cases, I am not going to do the math because I am not going to be upgrading that way or if I do, I will be purchasing the phone at 100% price to either give to someone else on my line.
Now, comparing that to buying the phone on a 2yr contract with the same pricing. $299 + 6% (in MI we only pay tax on the actual sale price) is $316.94. $40 for 24 months is $960. The total in that equation is $1,276.94, more than the $1,193.94.
It seems like if you are going to be stuck in a contract for 20 months or 2 years, the logical and cheaper choice would be to do the Edge. All everyone talks about is how bad the edge deal is (is this only for 1 year upgrades etc?). Sure my monthly bill will be $14.70 higher but in the long run it would save me money (I could use the $300 I was planning to originally buy the phone with to offset that cost monthly).
So sorry for the huge long post with lots and lots of numbers, but really just trying to make sure I am doing the best thing.
