ATT Trade in woes for iPhone

[phrehdd]

I like being able to choose when I buy a newer model iPhone. I learned the hard way not to (again) fall victim to a great "trade in" program with a phone carrier (mine is ATT). They offered 1000 dollars off or approx in my case. This really translates to paying all the taxes for it and a new connection fee and other small amounts then the "discount" is not exactly that - the carrier will supposedly discount. your bills over the many months to cover that trade in discount (the 1000 dollars or so). Any past programs you have with discounts get voided. I did the trade in, paid out the cash and my bill ends up about 4 dollars less than before. 4 x 36 months ...well not quite 1000. Seems that my program costs more now so they discounted from a higher amount than I was paying before. Messy, hard to follow, and definitely not what I was told at the carrier's store front.

My next iPhone will likely be an iPhone 18 if they get there or 19 as I am stuck for 3 years unless I want to pay off the phone outright which is more than the discount of course.

Anyone else run into this type of scenario? When my time is up with this carrier, I'll buy a phone outright and switch carriers pronto.

 

[now i see it]

Yes they’re almost all a ripoff and misleading — as you discovered.
The details are in the fine print in size 2 font buried intentionally with paragraph after paragraph of gibberish to discourage anyone from actually reading them.

 

[4sallypat]

Wow, 3 years locked into a carrier - thought those were the old days.

I just get mine financed thru Apple Card at 0% and I keep my iPhones for 2 years as I don't need the next new model every year.

Since it's unlocked, I can switch carriers too.

This year is the year to upgrade from 14 to 16 as my payments will end.

Don't you love using someone else's money for financing at 0% ?

 

[Jackbequickly]

Selling outright will gain you more but can be a hassle or risky.

 

[FreakinEurekan]

Consider switching to T-Mobile; when I did the switch they paid off my family’s phones to Verizon. I think it was up to $800 per, though we didn’t owe that much.

 

[webkit]

Wow, 3 years locked into a carrier - thought those were the old days.

Those days never went away, carriers just changed the marketing strategy. When contract became a "bad word" about 10 or so years ago, carriers started using inflated trade-in offers to lock people in long term. For example, a $300 phone may be worth $1,000 when you trade to a carrier but that extra $700 is spread monthly over 2 to 3 years which means you have to stay with the carrier for that time in order to get the full $700 inflated portion of the trade value.

The net result is essentially the same as the early years of 2 and 3 year contract discounts.

 

[4sallypat]

Those days never went away, carriers just changed the marketing strategy. When contract became a "bad word" about 10 or so years ago, carriers started using inflated trade-in offers to lock people in long term. For example, a $300 phone may be worth $1,000 when you trade to a carrier but that extra $700 is spread monthly over 2 to 3 years which means you have to stay with the carrier for that time in order to get the full $700 inflated portion of the trade value.

The net result is essentially the same as the early years of 2 and 3 year contract discounts.

Oh so carriers are doing the same thing but re-named it.

I used to do those locked device contracts for many years and then when Apple came out with unlocked iPhone and 0% interest Apple Card - that was a gamechanger.

Left me free to select different carriers including trying out MVNO carriers....

Looking forward to this year's 16 - going to use the Apple Card again after I pay off the 14 I financed....

 

[webkit]

Oh so carriers are doing the same thing but re-named it.

I used to do those locked device contracts for many years and then when Apple came out with unlocked iPhone and 0% interest Apple Card - that was a gamechanger.

Left me free to select different carriers including trying out MVNO carriers....

Looking forward to this year's 16 - going to use the Apple Card again after I pay off the 14 I financed....

If someone is willing to stay with the same carrier for 2 to 3 years AND finds value/benefits in the carrier's (higher priced) plans, it can be worthwhile to go with a trade-in deal. Carriers typically finance at 0% too and you are potentially getting several hundreds more for your trade-in device than you would from Apple. However, if the added features of carrier plans are not meaningful to the buyer, they can often do better with a lower priced MVNO plan and paying full price for the phone.

As far as Apple Card financing is concerned, Apple changed the 0% Apple Card monthly installment terms last year and now require customers to pick a specific carrier (AT&T, T-Mobile or Verizon) when choosing that option.

 

[4sallypat]

......
As far as Apple Card financing is concerned, Apple changed the 0% Apple Card monthly installment terms last year and now require customers to pick a specific carrier (AT&T, T-Mobile or Verizon) when choosing that option.

Yes I noticed that change - no more financing an unlocked phone without carrier.

Do you think that changing to a new carrier during the 16 launch might be beneficial if one is not happy with their current carrier (AT&T) ??

 

[webkit]

Do you think that changing to a new carrier during the 16 launch might be beneficial if one is not happy with their current carrier (AT&T) ??

People should probably explore other carrier options (and "deals") every time they consider buying a new phone.

 

[wickedrm]

Yes they’re almost all a ripoff and misleading — as you discovered.

They’re only a ripoff and misleading if you can’t read. It very clearly states the $1000 is paid monthly with credits lasting 36 months.

It’s honestly a great deal. Oh, you’re stuck to ATT for 3 years? So what? Why would you leave anyway? Most normal people stick with their carrier. And a free phone for doing what I was going to do anyway is icing.

 

[phrehdd]

They’re only a ripoff and misleading if you can’t read. It very clearly states the $1000 is paid monthly with credits lasting 36 months.

It’s honestly a great deal. Oh, you’re stuck to ATT for 3 years? So what? Why would you leave anyway? Most normal people stick with their carrier. And a free phone for doing what I was going to do anyway is icing.

Well dearie, what if you want to pay off the phone? If you try they will only allow you to pay the entire non trade in cost as they see it. The goal is to force the customer to be in a contract for 3 years. As for "so what"... rather a child like expression.

 

[wickedrm]

Well dearie, what if you want to pay off the phone? If you try they will only allow you to pay the entire non trade in cost as they see it. The goal is to force the customer to be in a contract for 3 years. As for "so what"... rather a child like expression.

If you want to pay off the phone, you can. You will still receive monthly credits so long as you do not perform an upgrade on the line. I’m not sure why you’d want to pay it off though, as the credit covers it every month. Free phone.
Contract, if that’s how you see it. You’re free to do whatever you want; and you’re being rewarded for staying, even though you were going to stay any way.
What’s childish is complaining about getting a free phone.

 

[phrehdd]

If you want to pay off the phone, you can. You will still receive monthly credits so long as you do not perform an upgrade on the line. I’m not sure why you’d want to pay it off though, as the credit covers it every month. Free phone.
Contract, if that’s how you see it. You’re free to do whatever you want; and you’re being rewarded for staying, even though you were going to stay any way.
What’s childish is complaining about getting a free phone.

The phone is not "free" as you have to give up your present phone, pay the full value of the phone taxes and then a connect fee. If I was really a "trade in" and they high value your present phone then whatever the new phone should cost after the trade in should be easy to pay off in one payment. This is not the case. If they say took 1000 dollars off in a "trade in" as promoted, the cost of the new phone should be value of trade + cost of new phone minus 1000 dollars. That is not the case here.

 

[wickedrm]

Your present phone is not worth $1k, but they are giving you $1k in credits. Once you’ve done this once, you have a phone you paid taxes on, and get another $1k for trading it in 3 years later. What’s so hard to understand about this? It’s a good deal.

If they say took 1000 dollars off in a "trade in" as promoted,

That is not how it is promoted, if you would just read the promotion. It clearly states received over 36 monthly credits.

 

[mikelets456]

Consider switching to T-Mobile; when I did the switch they paid off my family’s phones to Verizon. I think it was up to $800 per, though we didn’t owe that much.

Yeah they gave me a crazy deal. An iPhone 15 and 15 plus, Netflix, Apple TV for 6 months, AAA, inflight for every flight for 1 hour or 4 flights for the duration, unlimited everything, hotspot, WiFi calling, etc…$80 total a month for two lines.
Also we have traveled a lot and had signal from north jersey to TN to WV mountains , etc.

 

[TgeekB]

I quit being stuck to a carrier and their prices a long time ago. What I save on my monthly bill and the freedom to buy when I want and what I want is important to me.

 

[The1Biz]

I just buy phones outright or get a used decent condition one from eBay.

Swap in a SIM card, and voila.

If I do get another one, I'm just going to Canada for a SIM iPhone (as long as their phones still have them).

Why even bother with these cheezy business practices.

 

[wickedrm]

These “cheesy business practices” make my bill cheaper than whatever phone plans yall are using. I’m not sure how paying outright for your phone is any cheaper than receiving $1000 in credits.

 

[ShadowGuardian87]

Back in the earlier days of the iPhones the carrier deal was worth it. I been with AT&T ever since I got my first iPhone in 2008 ( iPhone 3G) and they had the sweet deals of allowing you to upgrade to the newest iPhone every two years at a discount.

So I got the iPhone 4, 5, and 6 plus for like 200-300 dollars outright. No payment plans or anything like that. The only catch was that you had to agree to remain with that cell provider for another two years.

Those carrier deals died with the iPhone upgrade program followed by these carrier deals that try to trick you. After the iPhone 6, I just started trading my phones in buying them outright.

 

[The1Biz]

These “cheesy business practices” make my bill cheaper than whatever phone plans yall are using. I’m not sure how paying outright for your phone is any cheaper than receiving $1000 in credits.

Simple. Buy a new $600 phone instead of a $1000 phone. Or buy a used current model phone which will be less.
An iPhone Pro 15 Max is $1399 new, $1045 used on eBay for example.

Buy a cheap cell phone plan without all the terms, conditions, and other stuff associated with most postpaid plans. Phone plans don't even look like phone plans now with all the crap they bundle.

I can do whatever I want, whenever I want. I don't have to jump through corporate hoops. I much prefer that.

 

[The1Biz]

If someone is willing to stay with the same carrier for 2 to 3 years AND finds value/benefits in the carrier's (higher priced) plans, it can be worthwhile to go with a trade-in deal. Carriers typically finance at 0% too and you are potentially getting several hundreds more for your trade-in device than you would from Apple. However, if the added features of carrier plans are not meaningful to the buyer, they can often do better with a lower priced MVNO plan and paying full price for the phone.

As far as Apple Card financing is concerned, Apple changed the 0% Apple Card monthly installment terms last year and now require customers to pick a specific carrier (AT&T, T-Mobile or Verizon) when choosing that option.

My last contract phone was a 6s, that I kept after it expired for something like 4 + years. I got tired of that game anyway and really hoped that when contracts stopped it would be more like Europe and you just buy an unlocked phone, and a plan, and you are free to move at will. Instead we got iPhone contracts 2.0 with carrier phone financing to lock people in. With all the churn companies have to do stuff to try to get people to move as there are only three main companies now and the MVNOs don't really have great phone discounts.

Nobody owns me if I buy my own phone and don't have my Netflix, AAA, etc. all tied to a carrier.

 

[onenorth]

These “cheesy business practices” make my bill cheaper than whatever phone plans yall are using. I’m not sure how paying outright for your phone is any cheaper than receiving $1000 in credits.

I have done this with AT&T several times and it is a good deal. I don't plan on switching carriers or upgrading early. AT&T is giving me $1000 toward a traded-in phone that only cost me $600 due to a prior trade-in as long as I stick it out for 36 months. I come out ahead on each trade. Or if I want to upgrade early then I just pay off the balance, which is a fraction of the original cost of the phone because I get to keep all of the credits to date. I think people just don't like being locked into a carrier or a phone for 36 months. But even paying off a $1,000 phone half way through (18 months) only costs $500 so I'd still be ahead by $500 versus buying the phone outright.

 

[The1Biz]

I have done this with AT&T several times and it is a good deal. I don't plan on switching carriers or upgrading early. AT&T is giving me $1000 toward a traded-in phone that only cost me $600 due to a prior trade-in as long as I stick it out for 36 months. I come out ahead on each trade. Or if I want to upgrade early then I just pay off the balance, which is a fraction of the original cost of the phone because I get to keep all of the credits to date. I think people just don't like being locked into a carrier or a phone for 36 months. But even paying off a $1,000 phone half way through (18 months) only costs $500 so I'd still be ahead by $500 versus buying the phone outright.

Who wants a $75/month plan? Hard Pass.

They're making up the money on plan then, and keeping you locked in.

 

[onenorth]

Who wants a $75/month plan? Hard Pass.

They're making up the money on plan then, and keeping you locked in.

I get a corporate discount plus $10 per month for auto bill pay plus $10 per month for paperless billing so it works out to about $55 per line. Which is fine with me.