Can someone please check my AT&T Next math?

[Steviejobz]

I have 2 lines on my phone and for years I am able to get the newest phone by using one of the upgrades. I then give my wife my old phone and sell the oldest model. Rinse and repeat. Am now looking at AT&T Next as an option. I was reluctant as I will not be able to sell my phone to help pay for the newest model. However, the math may suggest that it is more or less unless I missing something.

Old way of upgrading:
Buy phone: $400
Upgrade fee: $40
Monthly Device Payment: $0
Discount on plan: $0
Sell old phone: $180
Total: $260 (my annual cost of upgrading)

Using AT&T next:
Buy phone: $0
Upgrade fee: $0
Monthly Device Payment: $42.50 * 12 = $509.40
Discount on plan: -$20 * 12 = -$240
Sell old phone: $0
Total: $269.40 (my annual cost of upgrading)

The difference is negligible but the plan discount comes from me downgrading from unlimited data to 4GB. We have never used more than 3GB in two years. I also get unlimited text and voice and hotspot access though I've never gone over on minutes and texts.

Also the price of the sale of my old phone is my experience with selling to Gamestop, Craigs list or Gazelle in a best case (50% of original subsidized value).

Am I being lured into something here? Am I missing something? Obviously unlimited data will be gone for good but I might be holding onto that for sentimental reasons vs. what I really need and use.

Any insights or advice would be appreciated. Thanks!

 

[nostresshere]

Your math is missing one very big part.

Monthly service cost.

Without that, the math does not work.

And this is where hundreds (thousands) of posts here go bad. Not ALL of the information and costs are included.


(by the way, we dropped unlimited and went with 10gb shared plan -saved over $1,000 a year)

 

[dagored]

You forgot the tax upfront on NEXT on cost of the phone.

 

[Steviejobz]

Your math is missing one very big part.

Monthly service cost.

Without that, the math does not work.

And this is where hundreds (thousands) of posts here go bad. Not ALL of the information and costs are included.


(by the way, we dropped unlimited and went with 10gb shared plan -saved over $1,000 a year)

I included the difference in that math. With Next and dropping unlimited to 4GB which is what we would need, we would save $20/mo or $240 over the 12 month period.

----------

You forgot the tax upfront on NEXT on cost of the phone.

I would pay the tax in either scenario so that isn't a difference.

 

[JRoDDz]

Not sure about you, but I get a discount on my plan of $25 per month for each iPhone line. In my case 4 lines x $25 = $100 a month discount. I'm on the Mobile Value share 10GB plan.

 

[rui no onna]

Old way of upgrading:
Buy phone: $400
Upgrade fee: $40
Monthly Device Payment: $0
Discount on plan: $0
Sell old phone: $180
Total: $260 (my annual cost of upgrading)

Using AT&T next:
Buy phone: $0
Upgrade fee: $0
Monthly Device Payment: $42.50 * 12 = $509.40
Discount on plan: -$20 * 12 = -$240
Sell old phone: $0
Total: $269.40 (my annual cost of upgrading)

Those numbers look about right. I'm guessing the discount on plan is compared to what you're paying now on grandfathered unlimited? If so, contract on MSVP 4GB might be better for you as per line discount on 4GB plans is just $15. Based on your numbers, this is what I'm estimating for contract on the new plans.

MSVP 4GB 2-year
Buy phone: $400
Upgrade fee: $40
Monthly Device Payment: $0
Discount on plan: -$5 * 12 = -$60
Sell old phone: $180
Total: $200 (annual cost of upgrading)

 

[Steviejobz]

Not sure about you, but I get a discount on my plan of $25 per month for each iPhone line. In my case 4 lines x $25 = $100 a month discount. I'm on the Mobile Value share 10GB plan.

That is the typical savings because you probably originally paid a lot more for your contract. I'm on some family plan where I do not even pay a line fee, just $10 for an additional line. So I would save that $10 + a bit more by dropping from unlimited data to 4GB.

 

[dopke]

Old way of upgrading:
Buy phone: $400
Upgrade fee: $40
Monthly Device Payment: $0
Discount on plan: $0
Sell old phone: $180
Total: $260 (my annual cost of upgrading)

Using AT&T next:
Buy phone: $0
Upgrade fee: $0
Monthly Device Payment: $42.50 * 12 = $509.40
Discount on plan: -$20 * 12 = -$240
Sell old phone: $0
Total: $269.40 (my annual cost of upgrading)

Looks right to me as well.

 

[zhenya]

With NEXT 12 you become eligible for an upgrade at 12months, at which point you have a couple of options. You can either turn in your phone and buy a new one keeping your monthly payment the same, but you get a new device. You can pay off your current phone, which then belongs to you (to sell or do with as you please) or you can just keep paying for your phone until you've paid it off in full at month 20.

NEXT is really just a way of financing the cost of the phone interest free.

If you do change, do be careful about what data plan you sign up for. They pretty much only push the 10GB plan, but you, like most people don't actually use anywhere near 10GB. You can get the same benefits, but save a LOT of money by switching to a data plan that just covers your usage.

 

[Steviejobz]

Those numbers look about right. I'm guessing the discount on plan is compared to what you're paying now on grandfathered unlimited? If so, contract on MSVP 4GB might be better for you as per line discount on 4GB plans is just $15. Based on your numbers, this is what I'm estimating for contract on the new plans.

MSVP 4GB 2-year
Buy phone: $400
Upgrade fee: $40
Monthly Device Payment: $0
Discount on plan: -$5 * 12 = -$60
Sell old phone: $180
Total: $200 (annual cost of upgrading)

So you are saying to upgrade with a two year contract but also drop unlimited and go with 4GB? This combines my two options but doesn't do the Next feature.

 

[rui no onna]

So you are saying to upgrade with a two year contract but also drop unlimited and go with 4GB? This combines my two options but doesn't do the Next feature.

Next isn't always better even on new plans. On any plan lower than 10GB, 2-year contract will be cheaper than Next. You need a discount of at least $18.75/month to break even with 2-year contract.

Dropping unlimited data to 4GB will lower your out of pocket costs. However, for a measly $60/year in savings, I strongly urge you to consider whether tethering, etc are useful features to lose unlimited data over. Also, consider the possibility of increased data usage if/once you start using tethering.