AT&T Next every year vs Apple Installment

[mildocjr]

It's not a lease, it's an installment plan. There's nothing stopping you from paying off the remaining balance on the device and selling it yourself. The early upgrade program just makes things easier if you don't want to deal with selling on ebay, CL or trading in to Gazelle, Amazon, etc. Basically you're trading higher resale value for convenience with the upgrade programs.

You're not saving $500 every two years because you're buying outright. You're saving $500 because you're not replacing your phone every year.

Either way that's still $500 regardless of whether its a lease or not. If you'd like I could re-do the math assuming I sell the newest phone after 1 year to afford the next one.

I'll get back ~$600 per phone and selling every year. that's $1200 bucks, one phone is free since the price of the phone is ~$900 after 9 years of phones I'll get both phones for no added principle investment, if you'd call it that.

However, the other way around I'll only be spending $432 on a phone each year on a leasing plan.
So Lets say I sell it for $600, subtract that from the original $900, and that's $300 per year on a phone. After 9 years that remainder of 300 catches up and I get the second phone for no additional cost.
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Your math isn't entirely correct though.

IUP: iPhone 6s 64GB + AppleCare+ = $878
$36.58 X 12 = $438.96. That means, Apple is giving you $439.04 for your current phone on trade-in when you upgrade to the next phone. By paying off the remainder of the loan, you are essentially selling it back to them. I will gladly take $439 for my iPhone 6s without having to worry about fees, scams or the hassle of selling it. Plus I get to keep all the accessories for free. Which is valued at $75 if you were to buy them from Apple.

The savings you are talking about is only if you upgrade every other years. Not yearly. Also, you won't be able to sell a 2 year old iPhone for $500. iPhone 6+'s are worth like $400-$450 tops right now and the 7 hasn't been announced/launched. That price will drop at least $100 in a week's time.

Check out the pricegeek.com - http://www.thepricegeek.com/results/iphone+6s+plus+64+gb+unlocked?country=us

Since the phone is mine and not tied to the service contract, I can have it unlocked at any time, $400 and $500 is the difference between locked and unlocked phones. I also don't use AppleCare with my phones.

My math works, and in my previous comment I describe how it works even on a year to year basis.

 

[Mlrollin91]

Check out the pricegeek.com - http://www.thepricegeek.com/results/iphone+6s+plus+64+gb+unlocked?country=us

Since the phone is mine and not tied to the service contract, I can have it unlocked at any time, $400 and $500 is the difference between locked and unlocked phones. I also don't use AppleCare with my phones.

My math works, and in my previous comment I describe how it works even on a year to year basis.

I have done what you are doing for the last 6 years. I have never once been able to get close to 66% resale value after one year. It doesn't happen. After 1 year I get about 50-55% max, year two, 35-45% max. With the IUP program you get 50% back guaranteed.

You can also do the Apple Installment plan which does not have AppleCare and is designed for 2 years without early upgrade. Thats the same thing as paying for it full, but its spread out over $24 months. Also, IUP/Apple Installment is unlocked from the beginning.

 

[rui no onna]

Either way that's still $500 regardless of whether its a lease or not. If you'd like I could re-do the math assuming I sell the newest phone after 1 year to afford the next one.

I'll get back ~$600 per phone and selling every year. that's $1200 bucks, one phone is free since the price of the phone is ~$900 after 9 years of phones I'll get both phones for no added principle investment, if you'd call it that.

However, the other way around I'll only be spending $432 on a phone each year on a leasing plan.
So Lets say I sell it for $600, subtract that from the original $900, and that's $300 per year on a phone. After 9 years that remainder of 300 catches up and I get the second phone for no additional cost.

Actually...

Full retail price is $850 for the 6s Plus 64GB. Assuming if you resell every year, you can get $600, that's 70% resale value. With AT&T Next Every Year, effective resale value is 50% (since you only pay half the cost in the first place).

Based on full retail price, if you just buy one device a year, you should be getting a "free" upgrade with the buy and sell route after 5 years ( 100% / (70% - 50%) ). With two phones a year, you get one "free" device after 2.5 years.

 

[JulesJam]

Whenever I upgrade to a new iPhone I give my old one to my wife and she gives hers to our nephew. With the iPhone 7 it will be the first time we aren't on a 2 year contract.

I was planning to do the AT&T Next Every Year program this time around with the iPhone 7 and then just pay off the phone next year so I could get the iPhone 8. I didn't realize that Apple has a payment plan that is exactly like the Next Every Year EXCEPT you don't have the upgrade options (which I don't want anyway) On top of that AT&T charges a $20 activation fee. So technically doing it through Apple is $20 cheaper. Anyone else doing it this way? Anything I'm missing?

Definitely go with the Apple program unless an employer would reimburse you if the equipment charge were on your AT&T bill. Better customer service with Apple.

 

[mildocjr]

Actually...

Full retail price is $850 for the 6s Plus 64GB. Assuming if you resell every year, you can get $600, that's 70% resale value. With AT&T Next Every Year, effective resale value is 50% (since you only pay half the cost in the first place).

Based on full retail price, if you just buy one device a year, you should be getting a "free" upgrade with the buy and sell route after 5 years ( 100% / (70% - 50%) ). With two phones a year, you get one "free" device after 2.5 years.

I added in tax which is roughly $50. With that you buy a phone every year 900 - 600 = 300 for the new phone, after 3 years you get the phone for "free" based on the returns from buying and selling the one devices. I was wrong in saying after 9 years, because I forgot to add in the extra 300 given by the second device. which even by that math would still be 6 years. You are correct in the before tax calculation.

 

[JulesJam]

but my response was more directed towards the statement that monthly payment are "for cars and houses". If you're doing payments because you're broke, yeah, bad idea. Not everyone that makes payments is doing it because they can't afford to do otherwise and I just hate when others imply that to be the case.

The DPPs are interest free loans with no penalty for early payoff as is the Apple iPhone Upgrade Program. AFAIK the AiUP does mean a hard pull to your credit the first time you enroll and that may be an issue for some people whereas with the carrier DPPs if you are an existing customer, they simply look at your past payment history, no hard pull.

But other than the hard pull issue, these are interest free loans with no penalty for early pay off and no downside. No matter how much money you have, an interest free loan with no penalty for early pay off is always a better option than paying in full. Again, the hard pull may be an issue for someone looking to refinance a house or buy a new car but other than that, I don't see a downside.

 

[rstark18]

Definitely go with the Apple program unless an employer would reimburse you if the equipment charge were on your AT&T bill. Better customer service with Apple.

After watching this thread I decided my best option is to pay full price to take advantage of my CC extended warranty. If it wasn't fort that then I would have done the Apple installment plan.

 

[JulesJam]

After watching this thread I decided my best option is to pay full price to take advantage of my CC extended warranty. If it wasn't fort that then I would have done the Apple installment plan.

How does that work? With AMEX I believe you have to pay to get the phone repaired, submit a claim with the bill and then they reimburse you.

For me, I much prefer the AC+. Yes it is another $135 when you factor in sales tax but the ease of an AppleCare+ claim is worth it to me.

 

[Mlrollin91]

How does that work? With AMEX I believe you have to pay to get the phone repaired, submit a claim with the bill and then they reimburse you.

For me, I much prefer the AC+. Yes it is another $135 when you factor in sales tax but the ease of an AppleCare+ claim is worth it to me.

Yes. The CC company reimburses. Takes less than a week. Why pay the $129 for AppleCare if you can get the warranty problems fixed for free? The only benefit to AC+ is accidental damage. But most CC's offer 90 days of accidental coverage as well.

 

[rstark18]

How does that work? With AMEX I believe you have to pay to get the phone repaired, submit a claim with the bill and then they reimburse you.

For me, I much prefer the AC+. Yes it is another $135 when you factor in sales tax but the ease of an AppleCare+ claim is worth it to me.

Amex doesn't deal with repair quotes. You submit a claim and they reimburse you for the entire phone.
My friend has done this three times. 1 - bad on/off button. 2 - bad home button. 3 - bad home button. These were all iPhone 5's. Amex didn't even blink. He had his credit within a week. Also these were AT&T contract bought so his reimbursement was $400 plus tax as that was what was charged to his cc. He buys all his phones full price now.

 

[BD1]

Can you get a iPhone 7 on the first day with AUP? Can you do AUP online or just in an Apple Store?

 

[Mlrollin91]

Can you get a iPhone 7 on the first day with AUP? Can you do AUP online or just in an Apple Store?

You reserve it online for in store pickup when preorders go live.

 

[JulesJam]

Amex doesn't deal with repair quotes. You submit a claim and they reimburse you for the entire phone.
My friend has done this three times. 1 - bad on/off button. 2 - bad home button. 3 - bad home button. These were all iPhone 5's. Amex didn't even blink. He had his credit within a week. Also these were AT&T contract bought so his reimbursement was $400 plus tax as that was what was charged to his cc. He buys all his phones full price now.

How do you return the defective phone to them? Does it have to be certified as defective by anyone?

Also, I don't get how he got reimbursed 3 times? He bought 3 new full retail iP5's?

 

[rui no onna]

I added in tax which is roughly $50. With that you buy a phone every year 900 - 600 = 300 for the new phone, after 3 years you get the phone for "free" based on the returns from buying and selling the one devices. I was wrong in saying after 9 years, because I forgot to add in the extra 300 given by the second device. which even by that math would still be 6 years. You are correct in the before tax calculation.

You pay tax upfront and in full either way (at least that's been my experience with AT&T and Verizon's programs) so that's effectively a wash.

 

[Mlrollin91]

How do you return the defective phone to them? Does it have to be certified as defective by anyone?

Also, I don't get how he got reimbursed 3 times? He bought 3 new full retail iP5's?

You take the phone to apple. They fix it. You submit the claim with CC company and they reimburse you the amount you paid for the fix or the entire cost of device you paid. It depends on the credit card company.

 

[BD1]

You reserve it online for in store pickup when preorders go live.

So obviously if you are not close to an Apple Store this is not an option.

 

[JulesJam]

You take the phone to apple. They fix it. You submit the claim with CC company and they reimburse you the amount you paid for the fix or the entire cost of device you paid. It depends on the credit card company.

The OP was saying that AMEX just refunds the full purchase price.

 

[Mlrollin91]

So obviously if you are not close to an Apple Store this is not an option.

I misread what you said. Were you asking if you could do it in store as well as online or vice versa? I figured you were asking can you do it in-store on launch day. My bad. You can do in store or online unless your TMO. Then in store only.

The OP was saying that AMEX just refunds the full purchase price.

Yes. As I said. Depending on the credit card company they will reimburse your repair fee or the entire purchase price you charged to the credit card when you purchased it.

 

[JulesJam]

Yes. As I said. Depending on the credit card company they will reimburse your repair fee or the entire purchase price you charged to the credit card when you purchased it.

You were responding to my questions I asked the OP about how AMEX works.

 

[rstark18]

How do you return the defective phone to them? Does it have to be certified as defective by anyone?

Also, I don't get how he got reimbursed 3 times? He bought 3 new full retail iP5's?

Although the fine print says they "may" ask for the product to be sent to Amex I have personally (nor has my friend) ever had to do that. Hopefully people don't take advantage of this and ruin a good thing.

As for his three phones, if I remember correctly most of them were close to launch of the iPhone 6 so he held out and bought new iPhones 6's . I think he ended up selling the broken iPhones on Craigslist.

 

[Mlrollin91]

You were responding to my questions I asked the OP about how AMEX works.

You also asked do you have to return the phone. And you don't because Apple is fixing it. You keep the same phone. So I answered that part of your question.
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Although the fine print says they "may" ask for the product to be sent to Amex I have personally (nor has my friend) ever had to do that. Hopefully people don't take advantage of this and ruin a good thing.

As for his three phones, if I remember correctly most of them were close to launch of the iPhone 6 so he held out and bought new iPhones 6's . I think he ended up selling the broken iPhones on Craigslist.

When it comes to an iPhone you can't really send it to AMEX. Apple is either fixing your current phone or takes the broken one and gives you a new one. AMEX is just reimbursing you. If you sent it to AMEX then you couldn't have given it to Apple and you wouldn't have the necessary information to submit a claim. At least that's my experience with AMEX.

 

[ZhenyaF]

I've been using Amex to buy every iPhone and iPad. The times I had to file a claim on a subsidized phone - they reimbursed for the price of the phone paid in full. Ever since the phones went to full price, they ask to get a repair estimate. You go to the Apple Store and get an OOW estimate. Apple replaces your phone with a new one and Amex reimburses you for the cost paid.
I've also had to use the Amex warranty for other electronics - if the item is under a certain amount (usually $300) they reimburse the cost of the item. They have never asked for the item back (although they reserve the right to do so)

 

[jlyanks85]

I'm on the fence with the apple upgrade program and att next as well. I love the option to be able to just get a new iPhone every year, which is what I have done for the last 6 years, and without the hassle of selling my older iPhone on eBay.

The problem is, I'm not liking that the bank that apple partners with, does a hard pull on your credit. Yes, it doesn't do much damage to your score when it's high like mine, but I still don't want that inquiry on my report for the foreseeable future. Which is why att next could be a better option, since I'm already a long time att customer, but I've heard bad things about next as well.

This will probably be a last minute decision for me before I pre order next week.

 

[aristobrat]

Which is why att next could be a better option, since I'm already a long time att customer, but I've heard bad things about next as well.

I'm glad AT&T changed their Next plan this year.

Previous years, you had to be on the Next 12 plan to upgrade yearly, which had the price of the phone spread over just 20 payments. So when you paid your 12th payment (and could trade it in), you'd have paid for 60% of the phone. AT&T bought it back from you for 40%. Not a good deal (IMO).

AT&T's Next program this year is 50/50. Never thought they'd do that.

Nice to see Apple has a new 50/50 program without AppleCare+. So like AT&T's program, except the Apple phone comes unlocked from the start.

 

[HDJulie]

I thought I saw somewhere on the AT&T site that the NEXT plan would now require a credit check. I'll see if I can find that again.

This is what I saw:

AT&T Next®/AT&T Next Every YearSM: For smartphones only. Divides retail price into monthly installments. Requires 0% APR monthly installment agreement and eligible service. Tax due at sale. $0 down requires well-qualified credit or 30% down-payment option available.