If you pay off the phone in less than 24 months, you lose credits. So if you pay off at the 12 month mark (assuming no down payment and a $869 phone) you've paid $110 in monthly payments up to that point and have a balance of 50% ($434) which you would have to pay in a lump sum to own the phone. You would have paid att $544 plus the value of whatever phone you traded in. If your phone is worth $300 today, you are basically breaking even on this deal (i.e. It's not a great deal because it cost you $844 for a $869 phone). You could then sell the 7 and recoup whatever the market value is at that point, maybe $500, so you'd be $344 out of pocket.
Now if you live out the 24 monthly payments and get the credit each month on a $869 phone, then in two years you've paid att $219 plus the value of your original phone and you own the 7 at this point. So if your original phone was worth $300 then you've paid $519 for a $869 phone (a pretty good deal). If you can flip the 7 in two years for, say, $400 then it's only $119 out of pocket.
A lot rides on how much these phones will be worth on the open market in one year and in two years. Hope this made sense lol
In much simpiler terms: the benefit of this deal if you buy out in 12 months is the difference between your current phone's worth and $325. The benefit of this deal if you live out the full 24 months is the difference between your current phone's worth and $650.
(okay not fully since I order the 128, but close enough)
