Can someone please explain how T-Mobile monthly phone payments work? (Jump Program)

[andyACEcandy]

I'm trying to decide if I'd rather buy the iPhone 6 outright or do the monthly payment thing through T-Mobile.

So let's say the iPhone costs $648 total retail (for math purposes)

On the T-Mobile Jump plan, you would pay $27/month for 24 months to pay it off completely ($648). If you choose to stop after 12 months, you will have paid a total of $324... which is half the retail price. However, you will also have paid $120 in Jump costs ($10 x 12 months). Bringing your total out of pocket expense to $444.

You then give the phone back to T-Mobile assuming it's in good condition... and you're done with the iPhone 6 and can get the iPhone 6s or whatever new phone is out at the time... repeat the entire process above. Is all of this correct?


The alternative option would be to just buy the phone outright for $648 and OWN it. Then, when the iPhone 6s comes out in a year, you could probably easily sell the iPhone 6 for at least $400-$450 on Craigslist or eBay or Swappa... meaning you would be spending around $200-$250 total out of pocket every year.


The second option sounds a lot better to me... but maybe I'm missing something?

 

[yeah]

If you would buy the iPhone 6 at full price, and then sell it down the line, you would have a net loss of around $200 (based on the eBay or Craigslist selling points that have been stated).

If you have JUMP, you'll need to pay off $324 + $120 JUMP fees, but you will not have a net loss and you can just spend another $199 or so to get the iPhone after the 6/6+.

Either way, you will sell/return the phone.

 

[andyACEcandy]

If you would buy the iPhone 6 at full price, and then sell it down the line, you would have a net loss of around $200 (based on the eBay or Craigslist selling points that have been stated).

If you have JUMP, you'll need to pay off $324 + $120 JUMP fees, but you will not have a net loss and you can just spend another $199 or so to get the iPhone after the 6/6+.

Either way, you will sell/return the phone.

I understand the net loss if I buy the phone outright and sell it... probably net loss of around $200 like you said.

But if I do JUMP, then I'm paying $444 to basically rent a phone... and I'll have to do $444 again when the next cool phone comes out.


Maybe I'm missing something, but net loss of $200 is better than spending $444

 

[yeah]

I understand the net loss if I buy the phone outright and sell it... probably net loss of around $200 like you said.

But if I do JUMP, then I'm paying $444 to basically rent a phone... and I'll have to do $444 again when the next cool phone comes out.


Maybe I'm missing something, but net loss of $200 is better than spending $444

Okay: Let's say you do buy two phones: The iPhone 6 and then the model after.

If purchased fully, you would pay around $1,300 and lose $200 after selling the first one. You would have only $450 to invest in the second one, which means an extra $200 subtracted to pay for the next iPhone, and then sell it for $450.

Net loss = $400 ($200 x2 phones)

With JUMP: $324-$325 per phone must be paid ($325 - $200 (down payment) = $125 to pay off before you can JUMP)...

Hmm, it seems that you would only need about five months to pay off the device to JUMP, but since you're waiting a year for the next iPhone, you'll pay $120 anyway.

That's $445 for the first phone, then you return it and start a new down payment for $200, pay off $125 for the rest and $120 for JUMP.

$890 spent on JUMP for two phones.

I don't know if I'm right though.

 

[andyACEcandy]

This is way too much math in the morning