Can someone please clearly explain verizon edge too me?

[metzy25]

So today my 5s was lost/stolen and I didn't have any type of insurance on it so I bought out my line and started a new line. I was going to pay the $200 for a two year agreement but they convinced me to do edge but I believe I was lied to. I was told when I upgrade I just bring the phone I have now which is the 5s I got today, and trade it in and the payment I pay for per month would go away, and I'd be paying for the new phone I upgrade to the same way I was paying for the 5s. That's not how edge works right? Can someone explain it to me?

 

[aristobrat]

Have you read their FAQ page?

http://m-support.verizonwireless.com/mobl/features.faqs_faqs|Equipment|vz-edge.tp_2.html

 

[T5BRICK]

The new Verizon Edge, AT&T Next and T-Mobile Jump all basically work the same way:

You pay per month for your Voice, text and data.

You pay per month for your phone. Usually this is split up over 20-28 months months. You have the option of just making the monthly payment until it is paid off, paying it off early, or trading it in towards a new phone after a certain amount of time, usually about 12 months.

Verizon offers a discount on the monthly plan when you use Edge, but that discount goes away if you bring your own phone or pay your phone off early. AT&T also offers a discount on the monthly plan if you use Next, but this discount doesn't go away when the phone is paid off. I'm not sure how T-Mobile works.

 

[tremlock]

The discount sounds nice, but if you're paying $27 a month for the phone and get a $20 discount you're still wind up paying more than if you sign the 2 year deal. I'm also sure the trade in value is much less than you can get via selling yourself.

 

[metzy25]

So how does it work if I upgrade in 6 months for the new iphone?

 

[Applejuiced]

So you sign up for something you don't know or understand.
And then you ask questions about it here?
You're a salesmans wet dream

 

[aristobrat]

The discount sounds nice, but if you're paying $27 a month for the phone and get a $20 discount you're still wind up paying more than if you sign the 2 year deal.

If you upgrade yearly on a 2 year deal, then you're paying $649+ out-of-pocket to upgrade halfway through the contract. That's a deal breaker for some.

On Edge, you can trade for a new phone when you've paid 50% of the balance. So that's essentially your trade-in value, no? So $325 for a 16gb iPhone. In my area, that's about what you'd get for selling on Craigslist. I've sold for more on eBay but after all the fees were said and done, I didn't net much more than Craigslist.

 

[tremlock]

If you upgrade yearly on a 2 year deal, then you're paying $649+ out-of-pocket to upgrade halfway through the contract. That's a deal breaker for some.

On Edge, you can trade for a new phone when you've paid 50% of the balance. So that's essentially your trade-in value, no? So $325 for a 16gb iPhone. In my area, that's about what you'd get for selling on Craigslist. I've sold for more on eBay but after all the fees were said and done, I didn't net much more than Craigslist.

I see. That's a decent breakdown

 

[aristobrat]

So how does it work if I upgrade in 6 months for the new iphone?

You have to pay off 50% of the current phone before you can upgrade.

50% of a $649 16GB iPhone = $325

At 6 months, you would have only paid 25% of the current phone ($162)

So to upgrade, you'd have to pay another $162 to upgrade on month 6.

 

[maliu]

Don't you also have to give them back the phone unless it's paid off?

 

[T5BRICK]

Don't you also have to give them back the phone unless it's paid off?

Correct.

 

[metzy25]

You have to pay off 50% of the current phone before you can upgrade.

50% of a $649 16GB iPhone = $325

At 6 months, you would have only paid 25% of the current phone ($162)

So to upgrade, you'd have to pay another $162 to upgrade on month 6.

So whatever I pay off comes off the $325, and pay that?

 

[metzy25]

Does it take any money off when I trade the phone in? Or basically I pay half of what the remaining balance of the phone is?

 

[mattopotamus]

Does it take any money off when I trade the phone in? Or basically I pay half of what the remaining balance of the phone is?

You do not get any money for the phone. The $325 (half the phone price) is due and you must give them the phone. The new plans are really a rip off to customers. You are leasing a phone which makes zero sense. The best option is to pay the phone in full so you own it, and then sell the phone and put that towards a new device.

I know at tmobile if your phone is paid in full you can finance a new phone over 24 months. Verizon may not let you do that even you have the phone paid in full, not sure though. They may still consider it an "upgrade" to get the 0% financing and make you trade in the old phone. I would think if the phone is paid in full they would give you a credit towards the new device though.

Your best bet is still call verizon and ask them about different scenarios. I would say go in store, but often times they are clueless.

 

[T5BRICK]

The new plans are really a rip off to customers. You are leasing a phone which makes zero sense. The best option is to pay the phone in full so you own it, and then sell the phone and put that towards a new device.

The plans are only a rip off if you choose to trade the phone in after it is halfway paid off. If you pay it off early or just make the payments for 20-28 months, its your phone.

 

[mattopotamus]

Can someone please clearly explain verizon edge too me?

The plans are only a rip off if you choose to trade the phone in after it is halfway paid off. If you pay it off early or just make the payments for 20-28 months, its your phone.

Do they also charge a fee for having the plan? I know tmobile makes you have jump so you pay an additional $10. You are better off using a 0% credit card.

 

[T5BRICK]

Do they also charge a fee for having the plan? I know tmobile makes you have jump so you pay an additional $10. You are better off using a 0% credit card.

I didn't realize T-Mobile was charging for Jump.

AT&T doesn't charge a fee for Next, I don't believe Verizon does for Edge.

I mean, in the end, I'm going to be paying cash for my phone. The payment plans that AT&T and Verizon are offering aren't a bad alternative because they don't charge any interest.

 

[aristobrat]

The new plans are really a rip off to customers. You are leasing a phone which makes zero sense.

How do you figure? You're paying the full price of the phone (spread over 24 months, with no interest), and then you own the phone. You also have the option to trade the phone in halfway through your payments, if you want to upgrade early.

The best option is to pay the phone in full so you own it, and then sell the phone and put that towards a new device. .

Assuming you upgrade phones each year, at the end of two years, I don't see where there's much of a difference in cost between EDGE vs. the two year contract. To me, the big difference is that with EDGE, you're not paying $649 (in one payment) for your year #2 upgrade, and you're not having to take the time of selling your phone on Craigslist or eBay each year.

Verizon EDGE (for two years, on a 10GB+ Share plan):

$480 for service ($20/month x 24 months)
$648 for the two iPhones ($27/month x 24 months)
----------
$1,128

Typical 2-year contract:

$960 for service ($40/month x 24 months, on any Share plan)
$198 for the two iPhones ($199 - $325 + $649 - $325)
----------
$1,158

 

[mattopotamus]

I didn't realize T-Mobile was charging for Jump.

AT&T doesn't charge a fee for Next, I don't believe Verizon does for Edge.

I mean, in the end, I'm going to be paying cash for my phone. The payment plans that AT&T and Verizon are offering aren't a bad alternative because they don't charge any interest.

How do you figure? You're paying the full price of the phone (spread over 24 months, with no interest), and then you own the phone. You also have the option to trade the phone in halfway through your payments, if you want to upgrade early.


Assuming you upgrade phones each year, at the end of two years, I don't see where there's much of a difference in cost between EDGE vs. the two year contract. To me, the big difference is that with EDGE, you're not paying $649 (in one payment) for your year #2 upgrade, and you're not having to take the time of selling your phone on Craigslist or eBay each year.

Verizon EDGE (for two years):

$480 for service ($20/month x 24 months)
$648 for the two iPhones ($27/month x 24 months)
----------
$1,128

Typical 2-year contract:

$960 for service ($40/month x 24 months)
$198 for the two iPhones ($199 - $325 + $649 - $325)
----------
$1,158

Actually I think you have to pay $10 a month for EDGE as well. I have no idea where you are getting these $20 and $40 a month plans from verizon at....

 

[T5BRICK]

Actually I think you have to pay $10 a month for EDGE as well.

It doesn't look like it:

How much does Verizon Edge cost?
You make a device payment each month which appears on your bill. There’s no finance fee or upgrade fee to join the program.

http://www.verizonwireless.com/wcms/consumer/devices/edge.html

----------

I have no idea where you are getting these $20 and $40 a month plans from verizon at....

He's calculating the the monthly cost of a single line and excluding the $100-ish data charge because it's the same in both plans.

 

[aristobrat]

I have no idea where you are getting these $20 and $40 a month plans from verizon at....

For a phone on a 2-year contract, it costs $40/month to add it to a Verizon Share plan.

For a phone on an EDGE plan, it costs $20/month to add it to a Verizon Share plan (10GB+).

 

[mattopotamus]

It doesn't look like it:



http://www.verizonwireless.com/wcms/consumer/devices/edge.html

----------



He's calculating the the monthly cost of a single line and excluding the $100-ish data charge because it's the same in both plans.

For a phone on a 2-year contract, it costs $40/month to add it to a Verizon Share plan.

For a phone on an EDGE plan, it costs $20/month to add it to a Verizon Share plan (10GB+).

gotcha, but it is still cheaper to use a 0% credit card and go prepaid since the plans are much cheaper. I don't know the exact dollar values but prepaid 2gb plans are around $60-$65 a month (verizon/att). The same post plan cost nearly $100 if not more.

----------

I didn't realize T-Mobile was charging for Jump.

AT&T doesn't charge a fee for Next, I don't believe Verizon does for Edge.

I mean, in the end, I'm going to be paying cash for my phone. The payment plans that AT&T and Verizon are offering aren't a bad alternative because they don't charge any interest.

it is weird that tmobile charges for jump, but you can immediately cancel it and still take advantage of 0% financing.

 

[aristobrat]

gotcha, but it is still cheaper to use a 0% credit card and go prepaid since the plans are much cheaper.

True, prepaid has always been cheaper for people with 1 or 2 lines.

I'm on AT&T Next with three lines (family) and 10GB of data, and it works out to $48/month per line. That's cheaper than if we all had pre-paid. To me, the nice thing about EDGE and Next is that the two biggest carriers are finally giving discounts on monthly service to people who aren't using carrier subsidizes to buy their phones.

As for 0% credit cards, I don't know of any that have a normal APR of that. Limited introductory-period, yes, but not usually in effect 18 months later.

 

[T5BRICK]

Yup, as aristobrat stated, pre-paid certainly is the way to go if you only have one or two lines.

I've got 4 smartphones + 1 dumbphone on AT&T with 10GB shared data right now. I pay $175 a month before my FAN discount, but none of the phones are subsidized or on the Next plan. When it's time to upgrade I'll weigh my options, but I'll probably just pay cash and buy the phone outright.

 

[C DM]

True, prepaid has always been cheaper for people with 1 or 2 lines.

I'm on AT&T Next with three lines (family) and 10GB of data, and it works out to $48/month per line. That's cheaper than if we all had pre-paid. To me, the nice thing about EDGE and Next is that the two biggest carriers are finally giving discounts on monthly service to people who aren't using carrier subsidizes to buy their phones.

As for 0% credit cards, I don't know of any that have a normal APR of that. Limited introductory-period, yes, but not usually in effect 18 months later.

Too bad Verizon stops the discount once the phone is paid off or if you bring your own phone.