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

[spinedoc77]

Why would you guys want to pay the phone off early anyway? You get a new phone every 12 months anyway with no upgrade or activation fees. If I'm upgrading my phone every year to a new model I don't really care if I own or "lease" as long as I enjoy a new phone every year and don't have to hassle with selling it.

 

[co.ag.2005]

Why would you guys want to pay the phone off early anyway? You get a new phone every 12 months anyway with no upgrade or activation fees. If I'm upgrading my phone every year to a new model I don't really care if I own or "lease" as long as I enjoy a new phone every year and don't have to hassle with selling it.

I'd rather deal with the hassle of selling it. You pay $390 ($32.50/month x 12 months) for a phone if you trade it in at month 12. At least, if I spend $650 on a phone (pay it in full) and sell for $400-$450, I paid $200-$250 for the same phone you spent $390 for... but to each their own. I don't mind selling stuff

 

[mattopotamus]

I disagree, to me it sounds like if you pay it off early it's yours.

See http://www.att.com/esupport/article.jsp?sid=KB420710&cv=820#fbid=w8gjP7GnVUe

http://m.att.com/shopmobile/wireless/modals/next-faqs.html

ok good, all of the replies in the thread made it sound like you were still under the 12 months hold. That could make sense though since next is part of the process to get 0% financing.

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Why would you guys want to pay the phone off early anyway? You get a new phone every 12 months anyway with no upgrade or activation fees. If I'm upgrading my phone every year to a new model I don't really care if I own or "lease" as long as I enjoy a new phone every year and don't have to hassle with selling it.

for the reason the poster below your post mentioned. You would save money paying the phone off w/i 12 months and then selling it.

 

[Lucille Carter]

With NEXT12 you wouldn't have had an out of warranty phone... j/k Sorry, couldn't resist...

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

.

Kind of typical for this forum. I see how some could be even more confused after they ask a question here and got multiple conflicting stories.

 

[Ajones330]

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

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.

Tell me how paying more money down when on the bill it only gives the option to pay remaining balance on device(again I'm looking at bill with NEXT installment plan on it currently).

NEXT works like this:

1. $0 Down but pay tax on full retail of device. (Certain States)
2. Choose either NEXT 12 or NEXT 18 which means either change device every
12 months or 18.
3. After you receive your bill and decide you want to pay more money
down you then glance to the installment page and click on pay off
remaining balance of device. Only way to pay more money toward device.


Again not talking out the side of my head just stating facts. If forum members choose to go off your incorrect info then it only leads to people signing up on something they may not need or truly want...

 

[jehartley]

Tell me how paying more money down when on the bill it only gives the option to pay remaining balance on device(again I'm looking at bill with NEXT installment plan on it currently).

NEXT works like this:

1. $0 Down but pay tax on full retail of device. (Certain States)
2. Choose either NEXT 12 or NEXT 18 which means either change device every
12 months or 18.
3. After you receive your bill and decide you want to pay more money
down you then glance to the installment page and click on pay off
remaining balance of device. Only way to pay more money toward device.


Again not talking out the side of my head just stating facts. If forum members choose to go off your incorrect info then it only leads to people signing up on something they may not need or truly want...

Online, you are correct. I'm talking about in store. A week or so before the new iPhone comes out, I will sell my current iPhone 5s like I do all of my phones. I can guarantee you that when the new iPhone comes out, and I walk in with my $450, I will get the new phone on Next. I will pay the roughly $50 in sales tax, then say here is another $450 (which they will take), then the payments I will have (either 12 or 18 months) will be based on the remaining balance of the device.

 

[co.ag.2005]

Online, you are correct. I'm talking about in store. A week or so before the new iPhone comes out, I will sell my current iPhone 5s like I do all of my phones. I can guarantee you that when the new iPhone comes out, and I walk in with my $450, I will get the new phone on Next. I will pay the roughly $50 in sales tax, then say here is another $450 (which they will take), then the payments I will have (either 12 or 18 months) will be based on the remaining balance of the device.

I just chatted with an AT&T rep and with orders over the phone or in the store, you can put money down. Online orders you cannot. It doesn't change your installment amount but it does change how many installments you have to pay.

You are now chatting with Rob, an AT&T sales representative.
Rob: Welcome to AT&T online Sales support. How may I help you with placing your order today?
co.ag.2005: I have a question about the AT&T NEXT financing plan. Everything I read says $0 down, but what if I wanted to put money down (to help pay for the phone)? Can I put money down on a phone when I use NEXT?
Rob: I'll be happy to assist you today co.ag.2005.
Rob: You would have the sales taxes due at the moment of the sale.
co.ag.2005: I know that, but can I still put money down on the phone so I won't owe anything later? Say I walk in with $200. Can I put $200 down on the phone (plus sales tax)? or does it have to be $0 down (before sales tax)?
Rob: Of course you can but it would be with our customer care team over the phone.
co.ag.2005: ok... or in the store, correct?
Rob: That's correct.
co.ag.2005: now would that change the monthly payments too? An iPhone 5s is $650 total. Under the NEXT 12 plan, that is $32.50/month for 20 monhts
co.ag.2005: if I put $200 down, that would be $450 for the phone, so with NEXT 12, it would be $450/20 months = $22.50/month... is that how it would work?
Rob: It would still be the same amount but the installments would be less.
co.ag.2005: ok. so the math I put above is correct then. Since I put $200 down, the installments would go from $32.50/month (for 20 months) to $22.50/month (for 20 months)
Rob: No they wouldn't. It would be $32.50 for less then 20 months.
co.ag.2005: oh, ok. So the 32.50 would only go to about 13 months then instead of the default 20 months.
Rob: That's correct.
co.ag.2005: ok, thanks for the clarification.

to all in the thread... ymmv... but at least this is what they are telling people. I'll find out when the iPhone 6 releases and I try to put $260 down (+sales tax) (given the entry iPhone 6 is still $650)

EDIT: meant to multiquote you and Ajones

 

[Shockwave78]

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.

I usually buy 3-4 phones a year full price. If i decided to do the next program i would probably want to put down half of the total cost to reduce monthly payments. All these monthly bills of $30-60 a month add up pretty quick.

 

[co.ag.2005]

I usually buy 3-4 phones a year full price. If i decided to do the next program i would probably want to put down half of the total cost to reduce monthly payments. All these monthly bills of $30-60 a month add up pretty quick.

read my above post, it doesn't look like money down changes you monthly payment AMOUNT rather how many monthly payments it takes to get to the full price...

 

[Shockwave78]

read my above post, it doesn't look like money down changes you monthly payment AMOUNT rather how many monthly payments it takes to get to the full price...

meh, that sucks..i don't think i would ever do the plan anyway. Trading in your phone for what they or any other place gives you is comical.

 

[spinedoc77]

I'd rather deal with the hassle of selling it. You pay $390 ($32.50/month x 12 months) for a phone if you trade it in at month 12. At least, if I spend $650 on a phone (pay it in full) and sell for $400-$450, I paid $200-$250 for the same phone you spent $390 for... but to each their own. I don't mind selling stuff

Yeah I see where you are coming from. Personally I don't have the time anymore to hassle with negotiating, driving somewhere to meet someone, and worrying about getting mugged, or about them lowballing me after meeting. I've used swappa and such before and they are better for the buyer IMO because if you watch the listings you get an idea of the lowest selling points. I bought my Note 3 for under $500 recently, that's about 4 months after it was released. I have no trouble believing it will be in the $300 range a year after release. 724-300=424 I paid plus the hassle of selling it, although on swappa that wouldn't be much of a hassle. On Next 35x12=420, virtually the same thing.

Don't get me wrong, I'm not saying Next is "better", I just think they are pretty comparable. I don't see enough of a difference to force myself to use more of my disposable income and go through the hassle of selling a phone versus an interest free loan and what amounts to pretty much a lease which is fine by me.

 

[co.ag.2005]

meh, that sucks..i don't think i would ever do the plan anyway. Trading in your phone for what they or any other place gives you is comical.

you can just pay it in full when you decide to upgrade to a new phone and keep it... and then sell for money to help with the new device. You're not stuck trading it in to them

 

[spinedoc77]

ok good, all of the replies in the thread made it sound like you were still under the 12 months hold. That could make sense though since next is part of the process to get 0% financing.

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for the reason the poster below your post mentioned. You would save money paying the phone off w/i 12 months and then selling it.

Maybe, maybe not. It's tough to view a crystal ball into the future, although I think iphones have the best chance to recoup decent resale value. I used to buy my phones fully priced and sell them, and I've seen that resale value go down with every new phone cycle. I've also become lazier and realized my time was better spent making money. But that's me, I can understand a college student or someone with a lot of time or a small income wanting to maximize their money. Still, tying up your money in a phone purchase versus taking an interest free loan and keeping your cash liquid wouldn't be my first choice anymore.

 

[co.ag.2005]

Yeah I see where you are coming from. Personally I don't have the time anymore to hassle with negotiating, driving somewhere to meet someone, and worrying about getting mugged, or about them lowballing me after meeting. I've used swappa and such before and they are better for the buyer IMO because if you watch the listings you get an idea of the lowest selling points. I bought my Note 3 for under $500 recently, that's about 4 months after it was released. I have no trouble believing it will be in the $300 range a year after release. 724-300=424 I paid plus the hassle of selling it, although on swappa that wouldn't be much of a hassle. On Next 35x12=420, virtually the same thing.

Don't get me wrong, I'm not saying Next is "better", I just think they are pretty comparable. I don't see enough of a difference to force myself to use more of my disposable income and go through the hassle of selling a phone versus an interest free loan and what amounts to pretty much a lease which is fine by me.

yep, swappa is great. that's my preferred buying/selling place. My list goes swappa >> craigslist >> eBay... I don't touch eBay anymore... way too much crap going on there.

I will say that I'm glad they are separating the phone cost from the service cost!

 

[djransom]

Just signed my wife, my daughter, and myself up on NEXT w/ a 5C, and 2 5S iPhones. The plan is to definitely pay off before the next iPhone.

 

[Jstuts5797]

Ok whoever keeps stating you can't make larger payments randomly on your next phone balance is very very wrong. I've DONE IT! Walked right into the company store told them I wanted to pay more on my device , they took payment, gave me a receipt and it even shows how much balance was left until the device was paid off. I've done this more than once.

 

[ftaok]

Ok whoever keeps stating you can't make larger payments randomly on your next phone balance is very very wrong. I've DONE IT! Walked right into the company store told them I wanted to pay more on my device , they took payment, gave me a receipt and it even shows how much balance was left until the device was paid off. I've done this more than once.

I don't think anybody said that. One guy said that you couldn't make a down payment to lower your monthly payments.

So in your case, you're making extra payments to reduce your principal. What happens if you use the 12 or 18 month upgrade window? Do you lose those extra payments if you trade in your phone?

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I usually buy 3-4 phones a year full price. If i decided to do the next program i would probably want to put down half of the total cost to reduce monthly payments. All these monthly bills of $30-60 a month add up pretty quick.

Why? Instead of giving AT&T the down payment, keep it in a bank account. So your monthly bill is higher, big deal. Just pay it out of the down payment that you paid to yourself.

Too many people are leaving money on the table ... I understand that there's a psychological aspect, but it's your money and there's no penalty in a 0% "loan".

 

[co.ag.2005]

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

Why? Instead of giving AT&T the down payment, keep it in a bank account. So your monthly bill is higher, big deal. Just pay it out of the down payment that you paid to yourself.



Too many people are leaving money on the table ... I understand that there's a psychological aspect, but it's your money and there's no penalty in a 0% "loan".

I think the people (including me) that talk about down payment are the ones that are going to pay for the phone in full in order to keep it after the next upgrade. I'll pay the $650 regardless, so I'd rather pay $260 up front and then only have 12 payments of $32.50 and then get the next iPhone when it comes out (not worrying about paying it off then)... keeping the previous one to sell on swappa/craigslist.



if you plan on trading in the phone after you upgrade, then I wouldn't pay anything down or pay anything extra. But the math suggests it's cheaper (per yearly upgrade) to buy the phone outright, sell old phone, and upgrade new phone with the NEXT financing plan.

 

[ftaok]

I think the people (including me) that talk about down payment are the ones that are going to pay for the phone in full in order to keep it after the next upgrade. I'll pay the $650 regardless, so I'd rather pay $260 up front and then only have 12 payments of $32.50 and then get the next iPhone when it comes out (not worrying about paying it off then)... keeping the previous one to sell on swappa/craigslist.

it still doesn't make logical sense to do it this way. Instead of putting $260 down up front, keep it yourself, but don't spend it. After 12 months, use the $260 to pay it off.

Holding onto the $260 is smart financially. Keep the interest or give yourself financially flexibility. AT&T is giving away "free" money, why not take advantage?

I understand there is a psychological aspect here, but it's not logical.

 

[Jstuts5797]

I don't think anybody said that. One guy said that you couldn't make a down payment to lower your monthly payments.



So in your case, you're making extra payments to reduce your principal. What happens if you use the 12 or 18 month upgrade window? Do you lose those extra payments if you trade in your phone?



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Why? Instead of giving AT&T the down payment, keep it in a bank account. So your monthly bill is higher, big deal. Just pay it out of the down payment that you paid to yourself.



Too many people are leaving money on the table ... I understand that there's a psychological aspect, but it's your money and there's no penalty in a 0% "loan".

Ahhh gotcha! That makes more sense. I plan on keeping this phone for at LEAST 2 years. That's the usual time period I upgrade... Sometimes longer. My thought process is that when I have extra money I go ahead and pay down on it a bit to try to get rid of the monthly payment as quick as possible so I don't have to worry about it anymore. If your upgrading every year or so, I wouldn't pay down early at all.

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I also like to keep my devices when I upgrade rather than trade them in.

 

[lordofthereef]

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.

I am not sure how conceivably anything is "wasted".

You need to pay 12 payments of the 20 payments to turn the phone in. So... pay those twelve payments day one. Now you can get a new phone when the time comes. All you have done is decided for yourself not to make the payments monthly, but rather pay up front. No money is thrown away, you just paid today rather than tomorrow.

If your phone gets lost/stolen, or irreparably damaged, that is a chunk of money you don't have to deal with at that time, because it's already been paid. If you have the money to put down on day one, you are literally not losing out on anything that a person using the monthly installments is getting (unless you count giving up 0% credit as missing out).

 

[ftaok]

I am not sure how conceivably anything is "wasted".

You need to pay 12 payments of the 20 payments to turn the phone in. So... pay those twelve payments day one. Now you can get a new phone when the time comes. All you have done is decided for yourself not to make the payments monthly, but rather pay up front. No money is thrown away, you just paid today rather than tomorrow.

If your phone gets lost/stolen, or irreparably damaged, that is a chunk of money you don't have to deal with at that time, because it's already been paid. If you have the money to put down on day one, you are literally not losing out on anything that a person using the monthly installments is getting (unless you count giving up 0% credit as missing out).

OK, since no one has definitively determined if AT&T will allow you to put a down payment on the purchase of a phone, my reply will just be a thought exercise.

The OP talked about putting a down payment on a phone in order to lower his monthly payments. Let's say he's buying an iPhone 5s 16GB and wants to spread his payments out over 20 months. If he goes with $0 down, his payments will be $32.50 over 20 months for a total of $650. At the 12 month mark, he's eligible for an upgrade, provided he hands in his phone. He's paid $390 already and AT&T will allow him to forgo the remaining $260.

Now, let's say the OP wanted to put $100 down. His monthly payments will now be $27.50 over 20 months. At the 12 month mark he's paid $330, plus the $100 down payment. AT&T let's him off the hook for the remaining $220.

In this scenario, he's out $40. The larger the down payment, the more he wastes. Keep in mind, this is just a thought exercise. Maybe AT&T would allow you to take your $100 down payment back or something like that.

I haven't read the fine print of the T&C's, but the promotional material states that you can upgrade when you've made 12 (or 18) monthly payments. Your premise of making 12 payments on day one may not apply here. It's really semantics. If you put $390 as a down payment, you've technically not made any monthly payments. If you opt for $0 down, and paid $390 on the first bill, then you may have a point.

Either way, putting money down in the traditional sense of a down payment is foolish if you're able to get 0% financing. Even if the interest rates are low, it's still money your throwing away. Not to mention you lose cash flow flexibility in case you needed that money for something else, but now you've given it to AT&T unnecessarily.

 

[lordofthereef]

Either way, putting money down in the traditional sense of a down payment is foolish if you're able to get 0% financing. Even if the interest rates are low, it's still money your throwing away. Not to mention you lose cash flow flexibility in case you needed that money for something else, but now you've given it to AT&T unnecessarily.

I chatted with an agent and this was the response:

Ludie Brown: There'll be no option for paying the 12 months in advance. It defeats the purpose for no down payment. If you will make an advance payment, it will only be deducted to your monthly bills but not to the installment plan.

In terms of (now just theoretically) paying now being foolish, I would't go that far. You yourself admitted interest is going to be negligible (and it is... maybe a buck or two). I gave an example of a phone being lost/stolen or irreparably damaged. I see your point, but it's a matter of personal preference. I can all but guarantee that if I am strapped for cash, that couple hundred bucks isn't going to be what saves me. If you are going to argue that you may need the money, I am going to counter argue (lol) that you probably aren't making wise financial decisions by buying an iPhone in the first place...

 

[deeddawg]

.

 

[Mamamoz]

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.

Here's our deal. Our income fluctuates from month to month and even year to year. If I can put money down on the phone to lower my monthly bill then it becomes more manageable during those lean times. No right or wrong answer here it's just a personal preference.