ATT NEXT - Do you have to do $0 Down?

Discussion in 'iPhone' started by NickG420, Feb 13, 2014.

  1. NickG420 macrumors regular

    NickG420

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    #1
    If I choose to go with a ATT NEXT Plan, can I put as much down on the phone as I want, or do they force you to do $0 Down and $X a month?
     
  2. mattopotamus macrumors G5

    mattopotamus

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    Jun 12, 2012
    #2
    If it is similar to t-mobile, when you login online there is your service bill and an area to put money towards the phone.
     
  3. ftaok macrumors 603

    ftaok

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    #3
    Why would you want to put any money down? They're giving you 0% financing. Also, if you plan on taking an early upgrade, either 12 or 18 months, if you give them back the phone, the down payment is just wasted money.
     
  4. mattopotamus macrumors G5

    mattopotamus

    Joined:
    Jun 12, 2012
    #4
    B.c not everyone wants to pay $25 for 2 years. I would much rather pay upfront. I am very much against installment payments using revolving credit.

    Car payment and a mortgage are the only things I want to pay down
     
  5. ftaok macrumors 603

    ftaok

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    #5
    That's fine, but the OP asked about putting a down payment, presumably to reduce his monthly payments. The OP did not mention anything about using revolving credit to purchase a phone.

    I realize that some folks would prefer to pay things off and not have a monthly payment over their heads ... but if you have the financial discipline to handle monthly payments, a 0% loan is basically free money.

    Put the $650 in a savings account and pay the $25/mo over 26 months. You get the interest, which admittedly is sqautta these days. It's all about cash flow.
     
  6. ftaok macrumors 603

    ftaok

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    #6
    Credit Card Extended Warranties

    As I was thinking through my previous replies, the thought occurred to me as to how the credit card companies will handle extended warranties provided via the credit card.

    I'll have to research it a little more, but back when I was having problems with a Macbook a few years back, I read through Amex's ExWarranty program details. There was verbiage that the entire purchase price of the item had to be on the credit card, so if you used a gift card for a portion of the purchase, then the CC didn't cover the item.

    So with these NEXT, Uncarrier type programs, the phone is purchased under a "loan" type plan. With monthly payments and down payments. And in the case of NEXT, there is no down payment. So I'm thinking that if you use NEXT or Uncarrier or whatever Verizon calls their plan, your CC won't extend the warranty.

    Could be a reason to purchase the phone outright.
     
  7. deeddawg macrumors 604

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    #7
    Yes... but then you're just buying the phone on the no-contract price and not participating in the Next program. Certainly a viable option, especially if you're getting extended warranty benefit.
     
  8. Ajones330 macrumors 6502a

    Ajones330

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    #8
    The way the NEXT plan works, it is $0 down but you have to pay the sales tax if your state has one. As far as paying more, that is not a option unless you choose to pay off the balance of the device. So you can either do the normal monthly installments or choose to pay off the remaining balance. You cannot pay more down on the device.
     
  9. jehartley macrumors member

    Joined:
    Sep 30, 2012
    #9
    That's not true. I called and asked. You can pay more money down on the phone. What gave you the idea that you couldn't?

    In addition, if you do put money down, you will only have to pay the remaining price of the phone in payments. Just got off of the phone with them about this.
     
  10. ftaok macrumors 603

    ftaok

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    #10
    I still don't understand why anyone would want to put a down payment on the phone? I can understand paying outright, but if you're gonna have a monthly payment anyway, why not take full advantage of the 0% financing?

    Plus, if you choose to use the early upgrade feature of NEXT and plan on handing in the phone, the down payment would be wasted.
     
  11. bobright macrumors 601

    Joined:
    Jun 29, 2010
    #11
    Nice good to see some confirmation. Has anybody done this how much you put down and what's your monthly installments look like?

    If you choose to do an early upgrade but have already paid off your phone through Next you don't have to turn it in or do you?
     
  12. co.ag.2005, Feb 13, 2014
    Last edited: Feb 13, 2014

    co.ag.2005 macrumors 68000

    co.ag.2005

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    #12
    nope. at 12 months, you keep your phone IF you have paid it in full (already) or pay off the remaining balance of the phone.

    OP, seems like a good idea to put some $$ down... if it's allowed through NEXT as a previous poster MENTIONED.... EDIT: maybe it's not? my scenario below really only relates to the buyers ability to put $$ down... if not, then this scenario is moot... bottom line, you have to pay for the phone in full price somehow/someway in order to keep it. /EDIT

    ATT NEXT 12 (20 months of payments)... $650 phone / 20 months = $32.50/month

    if you upgrade at 12 months and only pay the $32.50/month ($390 total), in order to keep the phone, you'd need to pay AT&T the remaining balance of $260. That is if you want to keep the phone.

    so, if you are getting a $650 phone through NEXT, pay $260 down, do the rest of the $32.50/month payments, and after 12 months, upgrade to another phone without having to pay it off or trade it in. Then you can sell that previous phone for ~$400-450 and help towards the next phone...

    either way, you're paying full price for it (unless you aren't going to keep the phone). It seems more beneficial to keep the phone after your 12 months and either re-sell or hand it down to a family member. if you just give them the phone back after 12, it looks like you are losing money.

    am I looking at this right?
     
  13. bobright macrumors 601

    Joined:
    Jun 29, 2010
    #13
    We would not be out of contract though right? Basically what I'm saying is if I pay off my phone through Next within a year or so would my monthly bill under the 2GB mobile share value plan fall to $25/month e.g. the rates you'd pay for an "unlocked" phone?
     
  14. co.ag.2005 macrumors 68000

    co.ag.2005

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    #14
    if you have a phone financed through NEXT, you pay the same rate per line (i.e. rate to have the service on the phone ($25 in your case I think)) as you would if the phone was paid in full up front.... as far as I understand the NEXT program, you aren't under contract. you just have to pay off the phone if you want to upgrade to another (or trade it in). If you leave AT&T, you can leave at any time, you just have to pay off the phone (as long as all lines are on a NEXT plan)
     
  15. Ajones330 macrumors 6502a

    Ajones330

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    #15
    You cannot put more money down. Please realize I'm not talking out the side of my head here. I told you how it works and hope that you realize it is not a car you are leasing. Again refer back to my original reply. I spoke facts.:rolleyes:

    ----------

    Like I said before you pay $0 down but if you are in a state that requires sales tax then you pay that at the time of upgrade. You can either pay the monthly installment fee or opt to pay the remaining balance of the device. There is no paying more down as if you are leasing a car so please stop giving incorrect information.
     
  16. jehartley, Feb 13, 2014
    Last edited: Feb 13, 2014

    jehartley macrumors member

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    #16


    When did you start working for AT&T? Is it a good job? Do they pay well? :rolleyes:

    I spoke with AT&T about this at length. Yes, you can put money down on the device, and yes, you are talking out of the side of your head.
     
  17. bobright macrumors 601

    Joined:
    Jun 29, 2010
    #17
    It is definitely the way to go if they allow x amount of money down, with a decrease in your monthly bill installments to boot. You know what though even though it's what a rep said I'd actually have to see it or hear about it from someone with an actual bill in their hand because you just never know. I'll look into at length in a few months when it's time to upgrade hopefully somebody here who's gone through Next can verify it. It looks like everybody's waiting for the 6 though. Ha ha
     
  18. DCIFRTHS macrumors 6502a

    DCIFRTHS

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    #18
    We have a winner.
     
  19. ricktat, Feb 14, 2014
    Last edited: Feb 14, 2014

    ricktat macrumors 65816

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    Feb 18, 2013
    #19
    Being allowed to put money down would make sense but I don't think you can.

    The Idea of Next 12 Month is that you pay $XX per month and have the option to give the phone back after 12 months and get another one.

    If you put $200 down to lower your monthly payment, your remaining balance at 12 months would be less and ATT would owe you money back if you returned the phone and bought a new one.

    So unless there is a clause that states if you over pay and trade in at 12 months, they owe you a refund of the difference between what you paid and what the remaining balance should have been. It doesn't sound like this will work.

    Source:
    Tried to build a phone on ATT website and the system would only allow for me to pay sales tax.


    In a Lease there is a residual.

    $20,000 MSRP car with 50% after 36 months residual= $10,000

    In the lease you pay the depreciation between the price you paid and the residual plus taxes, fees, and lease charge(interest).

    When you put money down you are lowering your monthly payment, but the residual never changes.

    In the ATT NEXT program there is no residual. Just 100% of the cost of the phone.

    Key notes for ATT NEXT sometimes being a benefit.

    I have had an ATT store argue about or refuse to sell a Iphone on launch day at MSRP. They required that you extend/purchase a plan.

    With NEXT you wont have this issue.

    Also, at 12 months if you want to get a new phone and get rid of your old one. Just check the prices that your phone is selling for or easily sell it at a local shop(if you have one of those).

    If the price you can get is more than what you owe... Don't trade at ATT..Pay off NEXT and sell your phone for profit.
     
  20. Jstuts5797 macrumors 6502a

    Joined:
    Dec 15, 2013
    #20
    It's not exactly "putting money down" as it doesn't effect the end price or the 0% interest rate, but yes you CAN indeed pay a larger amount in your first payment or in any subsequent payments, in order to pay off the phone earlier. I know because I've done it!
     
  21. kupkakez, Feb 14, 2014
    Last edited: Feb 14, 2014

    kupkakez macrumors 68000

    kupkakez

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    Apr 4, 2011
    #21
    You cannot put more down and have it "reduce your monthly payment".

    So...for those of you that have talked to ATT "at length" about this you probably got a bum rep.
     
  22. aneftp macrumors 601

    Joined:
    Jul 28, 2007
    #22
    I am concerned about losing my credit card extended warranty perk with NeXt or other so called installment programs.

    You see companies like Amex will warranty you an extra year BASED ON PURCHASE price. So if you buy iPhone for $199 on contract. Even though iPhone is worth $650. Amex will only reimburse you $199 price if you have out of warranty repair.

    And with ATT next zero down. Amex will see that you didn't put any money down on your Amex purchase. So you lose that 90 day accidental damage/theft perk. Plus lose the extended year warranty.

    I just replaced my wife's 32gb iPhone 5 that was out of warranty (16 months old) because of defective ear piece or mother board. It can't be water damage. Or bad battery So Amex refunded me the entire $269 plus taxes I paid apple for replacement.

    With NEXT I would be screwed.
     
  23. deeddawg macrumors 604

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    Jun 14, 2010
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    US
    #23
    With NEXT12 you wouldn't have had an out of warranty phone... j/k :D Sorry, couldn't resist... :cool:

    Typical MR thread. Two conflicting statements (you can, you can't), both adamant. So who's right? :confused:

    Best plan is make your own payments into your savings account. When it's time for a new phone buy it outright with a credit card offering extended warranty, price protection, etc. Pay off the charge immediately out of your savings account and continue to make "payments" to your savings.
     
  24. mattopotamus macrumors G5

    mattopotamus

    Joined:
    Jun 12, 2012
    #24
    so I may be wrong, but this is what it sounds like. If you pay of your att phone you still do not own it until after 12 months?

    This is a lot different than t-mobile since you own the phone once it is paid off..not matter when you do so.
     
  25. deeddawg macrumors 604

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    #25

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