well, guess what, i dont need a new device every year, i'm really comfortable with the two-year program.
Just a difference in philosophy, I suppose. I have a 2010 SUV that I own outright, so I pay $0 a month on it and put $$ aside for the next car, so 8 years or so from now when I have to buy one I can walk in with a stack of cash and get just about anything I want.
A life of always owing someone $$ is just silly to me regardless of the product in question.-----
Not necessarily so. I got a 2% 5 year loan on my Lexus. I can get more than 2% on the 40K through investments. If you can get a low enough interest rate, take the cash and invest it in something that gives you more than 2%!
That is how I feel. I would rather have a monthly payment than drop 40k at one time.
I just want them to go back offering a full upgrade after 18 months like they used to.
I hope you realize that paying $10 a month on a ghost line and using that ghost line's upgrade for a $650 smartphone, working the system you are no better than AT&T.
AT&T is barely making their money back on that device, if they even are at all.
Don't expect that crap to last much longer.
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Cool story, bro.
I like the deal as long as I can put partial money down. Like I have no problem putting the $400 down for a 64gb iPhone. So $22 a month for 12 months is worth it to me to be able to get the next iPhone without the hassle of paying $900 upfront then trying to sell my old one to get half back.
That being said if tmobile gets good enough service I'd also switch to save money monthly as well. I have a lot of crap on my phone bill that I could eliminate to eat the $20 and not even feel it.
After doing the math, the cheapest option is to just get the subsidized phone every two years. However, if you do have to have a new phone every year then the cheapest option is to get the subsidized phone the first year then buy the retail version the next year and sell your first phone, leaving you the ability of obtaining a fully subsidized phone the next year. This is assuming that the only charge you will get from ATT at the end of the first year is the activation of the phone and that you can sell your locked phone at the same price as an unlocked year-old phone. Also if you go with the "Next" plan if you choose to get a new phone every year, your out-of-pocket expense will end up being almost three times what it will be if you just subsidize->buy->subsidize. That's just insane.![]()
That would be a really bad deal, since you are paying more up front....then when you turn it back in you get nothing but the right to get the next phone. If you want to go with the Next plan you're best off paying that phone off as slowly as possible.
But I'm sure AT&T will love your idea! They'll probably call it the Next Plan Plus!
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The cheapest option is to buy outright and then use T-mobile or one of the bring your own MVNO's that are tied to ATT or VZ if you need the better network. Then you can upgrade whenever you want. If you upgrade sooner, your previous phone will have less depreciation. If you hold on longer you'll save money but will have slightly older technology. The key is to find the sweet spot before the phone becomes obsolete and the resale value plummets. I'd say the iPhone 4 hits that point when the 5S comes out. You can still get iOS7 on it, but just a watered down version of it, so that model will really start to slip. Also the low price iPhone will even make a used 4S less attractive on this cycle.
.Anyone who signs up for these upgrade programs is a sucker and deserves to be taken by the carriers.
That would be a really bad deal, since you are paying more up front....then when you turn it back in you get nothing but the right to get the next phone. If you want to go with the Next plan you're best off paying that phone off as slowly as possible.
But I'm sure AT&T will love your idea! They'll probably call it the Next Plan Plus!
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The cheapest option is to buy outright and then use T-mobile or one of the bring your own MVNO's that are tied to ATT or VZ if you need the better network. Then you can upgrade whenever you want. If you upgrade sooner, your previous phone will have less depreciation. If you hold on longer you'll save money but will have slightly older technology. The key is to find the sweet spot before the phone becomes obsolete and the resale value plummets. I'd say the iPhone 4 hits that point when the 5S comes out. You can still get iOS7 on it, but just a watered down version of it, so that model will really start to slip. Also the low price iPhone will even make a used 4S less attractive on this cycle.
People need to get a clue. All of the "wah wah wah I am going to Tmobile" people need to realize why they are cheap. I had Tmobile a couple years ago and unless you live in a major city, your service sucks. In michigan they are the worst provider for coverage. AT&T has an early upgrade policy that is a 250 premium on the 2yr price to upgrade before your contract expires. So for a 16gb iphone I pay 450 for an early upgrade and can easily get 300 of that back when the next iphone launches and I sell on craigslist or ebay, even more than 300 if I unlock it which AT&T will do for free. I won't be doing the AT&T next if the prices don't drop to an amount that would make sense to do it because at 450 each year minus what I sell my old iphone for, I only end up paying 150ish out of pocket to upgrade my phone which isn't bad at all. And at the moment I get to keep my unlimited data which big red isn't doing so I am pretty much good to go. Don't get me wrong, if tmobile had the coverage that AT&T has, I would switch in a heartbeat. But if they did have that much coverage i'm sure they wouldn't stay that cheap. You get what you pay for.
AT&T has separated the cost of the phone and the rate plan, but they forgot to pass on the monthly service plan savings to the customer. Instead, customers are paying the same high monthly service bill, but with no device subsidy. That means customers in this program will essentially pay for their phone twice!
I don't really see how this is such a bad deal... Like in the example for a 16GB iPhone 5 you would end up paying $390. Provided the phone wasn't destroyed you'd get back $260 - Which equals $130 for the phone. Yeah, AT&T has their flaws but I don't think this is such a bad deal.
People need to get a clue. All of the "wah wah wah I am going to Tmobile" people need to realize why they are cheap. I had Tmobile a couple years ago and unless you live in a major city, your service sucks. In michigan they are the worst provider for coverage. AT&T has an early upgrade policy that is a 250 premium on the 2yr price to upgrade before your contract expires. So for a 16gb iphone I pay 450 for an early upgrade and can easily get 300 of that back when the next iphone launches and I sell on craigslist or ebay, even more than 300 if I unlock it which AT&T will do for free. I won't be doing the AT&T next if the prices don't drop to an amount that would make sense to do it because at 450 each year minus what I sell my old iphone for, I only end up paying 150ish out of pocket to upgrade my phone which isn't bad at all. And at the moment I get to keep my unlimited data which big red isn't doing so I am pretty much good to go. Don't get me wrong, if tmobile had the coverage that AT&T has, I would switch in a heartbeat. But if they did have that much coverage i'm sure they wouldn't stay that cheap. You get what you pay for.
I have been leasing vehicles for a while now, and I probably always will. I get a new car every 2 years and with good credit and a lease history you can usually get zero due at signing. Usually by time people pay off a car they are ready to buy a new one...not to mention with interest they usually pay about $36,000+ for a $30,000 car that they sell for $15,000
Agreed, vehicle leases work better than this ATT nonsense. If you don't exceed the mileage and always want a relatively new car at a lower monthly payment than purchasing a car lease can work well. You just factor in paying a car note forever as the cost of having a new vehicle every 2-3 years.
Cheers,
But if you pay full price for an iPhone today you don't get any discount on the rates. Nothing has changed in that regard. ATT is just letting you lease the phone so you can swap out every year.
Definitely off topic, but flipping cars that often is a huge waste of money. I agree though that the interest payments on a car note are outrageous, but thats why you should just pay cash. Buy year old used cars and let someone else eat a huge chunk of the depreciation....but definitely pay cash. Financing a depreciating asset is just madness, IMO.