I don't think so. I think you have to finish out your current plan before changing. Best to check with AT&T though to be sure.
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
AT&T Announces 'Next 24' Payment Plan, Allowing 30 Months to Pay Off Devices
- Thread starter MacRumors
- Start date
- Sort by reaction score
If you want to do a plan like that, I suggest a third party finance from companies like HFC and others. Get the loan from the third party under the terms you negotiate, pay for the phone in the loaned cash to the carrier and you have the terms you are looking for here.
Actually if you do the math, and understand the way the plans are structured, you are paying more or equal if you stay on contract compared to the Next plan. For example, I bought the 64gb 6 plus, if I would have opted to use my upgrade and stay on contract, it actually would have cost me $150 more for the phone in the long run because my line would have been an additional $40 per month on contract instead of $15 per month out of contract.
$25 x 24 months = $600 + $400 for the 64gb phone = $1000
ATT next charged me $879 straight up for the phone over 24 months.
Do you pay more in taxes over those 20 months versus buying it off contract? This is one aspect I've wondered about.
This is probably the most entertaining thread In a while.
You just said everything I wanted to, thank you for that! I have an iPhone 6 on a next plan, I could easily afford to pay cash for it. It's cheaper to use the next plan and keep more money in my hand. Heck just leaving it in my checking account earns interest.
Except it's not renting, so.....
No. You pay sales tax on the phone up front when you purchase it, and there are no more additional taxes for it on your bill. With Next you will end up paying the exact same amount as if you bought it outright.
The way I understand it is that you pay off the phone, similar to a lease, over a period of 30 months, and you must return the phone at the end of the 30 months. Am I incorrect?
Yes, you're incorrect.
At 24 months, you can trade your phone in for a new one. If you go all 30 months, the phone is yours forever.
I have an iPhone 5s off contract with AT&T, purchased by my employer, so not mine to trade in. I just priced a 128GB 6 Plus on the Next 12 and 18 plans and compared the cost to a two-year commitment and to buying a contract-free phone.
At 24 months, the cost for the both Next plans is identical to buying an contract-free phone outright, the difference being that I pay for it over time with Next. Buying with a two-year commitment is about $500 more, mostly due to higher monthly charges on my Mobile Share plan. Purchasing outright does have the advantage of immediately getting me an unlocked phone that I can use traveling, but that's not worth it to me.
So it looks like Next would a good deal for my use case. I'm not saying it makes sense for everyone, but blanket statements that it's not a good choice for anyone aren't valid, unless I'm missing something.
Bingo. Reading this thread gave me a headache. I can't see how anyone thinks that a 2-Year contract and a higher bill is better than paying for the phone over time. If you're talking about a 16GB iPhone, you pay $200 up front, but then end up paying $600 more over 24 months because you went with the subsidized phone, so basically a $650 iPhone costs you $800. Most people don't even know they are spending the extra money.
I think it is great that AT&T is doing this. It puts the money being spent in perspective for people. Our economy/culture has done a really good job a masking the true costs and values of these types of devices.
Ditto.
Most of the "money tips" in this thread are pretty hilarious.
Most don't seem to get what works for them doesn't work for everyone.
Your pricing explanation is spot on though!
Can't use amex extended warranty coverage under next. My iPhone 5 died at 14 months and amex refunded me my purchase price. Subsidized 299$. At least that allowed me to purchase a refurb at the Apple Store for $288. Had I been on next. I would still have 10 months of 37.50 payments to make =375. Then file a claim with amex. Who will most likely instead of refunding me 850$ will pay for the repair cost, aka new refurb at the store. $288 at the store.
Let me know if I'm missing something .
Let me know if I'm missing something .
Good point about AmEx extended warranty with Next.
Since it's a subsidized phone you are paying an additional $25 a month on the family share plan which equals $600 out of pocket over two years.
I always buy everything with AmEx for the warranty which means I would buy the phone outright rather than through Next.
Not sure, but if you bought Applecare+ for $100 with your AmEx on a phone that was purchased through Next, you would be covered for two years, plus accidental damage (+ the replacement fee) and possibly AmEx would pick up the additional third year. For $33 a year, not too bad. Would have to confirm with AmEx if this is the case.
I'm sorry. I was about to leave this thread when I saw this comment and I can't possibly let this go. Our economy has been through the ringer due to our debt addiction. There must be a fundamental change in our way of thinking and functioning as a society if we ever hope to pull out of this mess. Nobody deserves a phone. Financing a phone is probably not a good idea. Financing education? Sure. It's an investment. Financing a house? Sure it's a long-term investment, especially if you can get a 15 year mortgage. Although it's not as good as an investment as it used to be because so many people were buying houses that had no business buying them and tanked the market. Financing anything else should be avoided whenever possible. The reckless abandon others have with their finances impacts those of us who are responsible, and quite frankly I'm sick and tired of this attitude of "I do whatever I want because it feels good, consequences be damned!"
I agree that the point about Amex or other credit card extended warranty coverage is valid - I buy everything I can using my Amex card. But, as you say, the additional monthly fee that you have to pay on a subsidized phone with Mobile Share makes a huge difference that likely outweighs the advantage.
On the other hand, if having an unlocked phone that I could use abroad were important to me, I'd buy one full price and get the doubled warranty with Amex.
The point I was making in my earlier post was that for people on certain plans, buying a subsidized iPhone will end up costing considerably more than Next, unless I'm missing something in my calculations.
If that's the case, then people should really only purchase the phone that they can afford at the time, with no extra fees per month.
But, we don't. People buy things that they like to use. If you don't like it, I'm sorry. There's a much bigger underlying problem than people "financing a phone".
It's 0% interest, but they charge you way more for the phone. You pay $25 extra dollars a month for an on-contract phone over 24 months. That adds up to paying 25% more for your phone over a 24 month contract. So much cheaper to just buy the phone outright and put it on a plan.
Yes. If people have $650-$1000 just burning a hole in their pocket to purchase an iPhone off contract.
That's not really accurate either because if you sign up for the Next payment option as long as you pay off the price of the phone (which would unlock it) and you could cancel your AT&T service and take your phone any where you wanted.
What's the difference? You're going to spend it anyways. And you'll end up spending more if you get it subsidized.
The smart people will buy the phone as a subsidized "upgrade" and then buy out their contract for $325. You end up saving $100 on the phone.