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Carrier Nearly 3 year contracts!?!?

Drag'nGT

Drag'nGT

macrumors 68000
Original poster
Sep 20, 2008
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Verizon is locking you in with bill credits for 30 months and AT&T is going for 36 months!!! Both of them seem to have a payoff penalty for that last year.

I can handle a 2yr upgrade cycle but I can’t handle 3yrs. Anyone else in the same boat? What solutions have you come up with and what cost difference are you projecting vs taking the generous trade in deals and getting locked in?

I‘m thinking about skipping everything until the 24th and calling the retention department for a deal. i have an old iPhone unlimited plan and I’m about ready to give it up. But I could use that as my reason for not taking the promotions that are currently offered since they require you to loose that plan.
 
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T-mobile sometimes does 30 month but they don't have any penalty for paying off early. Even with the bill credits you continue to receive them monthly even with a paid off phone. But it does force you to stay with the carrier to get the full amount of credit. It seems its a way to get someone locked into a contract without being in a contract.
 
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seezar said:
T-mobile sometimes does 30 month but they don't have any penalty for paying off early. Even with the bill credits you continue to receive them monthly even with a paid off phone. But it does force you to stay with the carrier to get the full amount of credit.
Click to expand...
If you do the trade-in deal through Apple, TMO's credits are 24mo
 
seezar said:
Even with the bill credits you continue to receive them monthly even with a paid off phone.
Click to expand...

Did they change that? Last time I paid off an EIP early, the bill credits stopped. But that was probably 4+ years ago
 
Drag'nGT said:
Verizon is locking you in with bill credits for 30 months and AT&T is going for 36 months!!! Both of them seem to have a payoff penalty for that last year.

I can handle a 2yr upgrade cycle but I can’t handle 3yrs. Anyone else in the same boat? What solutions have you come up with and what cost difference are you projecting vs taking the generous trade in deals and getting locked in?

I‘m thinking about skipping everything until the 24th and calling the retention department for a deal. i have an old iPhone unlimited plan and I’m about ready to give it up. But I could use that as my reason for not taking the promotions that are currently offered since they require you to loose that plan.
Click to expand...
Where read payoff penalty? Looks like can payoff anytime with credits received but no future credits will be applied.
 
RickNY said:
Did they change that? Last time I paid off an EIP early, the bill credits stopped. But that was probably 4+ years ago
Click to expand...
I've got 3 different lines with paid off phones currently that I'm still getting the promo credits for. I know of others that have the same experience. Maybe it wasn't always the case.

I even have one line that's getting two promo credits currently because I paid off the one phone to do a trade-in deal on another promo.

Here is an example of my son’s line that has two different promos on it currently:

75cbec940d931140b96cfa20358a01e9.jpg
 
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I have taken advantage of the bill credits every year (for 24 months) as I have a cycle of phones being replaced between wife and kids. This year I am doing the regular iPhone 13 as that is still 24 months vs 30 for the 13 Pro. I know that I will not wait 30 months before upgrading and I don’t want to lose out on the 6 months of bill credits.

More detail I found online on how the Verizon bill credits work. Ignore the phone names as this is an older post but it is still valid as of 2021:

The way this would work is that you actually do pay the full value of the phone. So for example the Turbo 2 we are running on promotion is still $528.00 and the monthly payment charged is still $22.00. You get a monthly credit though to bring it down to the $10.00 value we are offering. So that is a $12.00 monthly credit. Due to this credit you're only paying $10.00 a month for the phone.


The phone payment has to be active to keep getting the credit. So after a year for example you'd have only paid $120.00 and have received $144.00 in credits and have $264.00 covered but you'd still owe $264.00 on the phone. You can pay the phone off at that point but it wouldn't be another $120.00 you'd have to pay. It would be the full $264.00. If we run a promotion allowing you to upgrade early you might be able to trade the phone in to cover that but you wouldn't get the remaining monthly credits.


The phone itself does not need to remain active. Only the line of service and the device payment. We do recommend insurance but if the phone breaks and you activate an old backup you'd keep getting the credits as long as you still have the device payment active and being paid monthly. If you just choose to give the phone to a friend and buy a new one at full price that is also true. That would have no effect on the credit as long as the number and the device payment stay active.
 
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To be honest my 11 is probably going to last me 3 years. I think I’d rather they split the cost of the phone over that length making it cheaper per month. I’ve paid £44 for 24 months and will pay 15 for the next 12, I think I’d rather £36 got 36 months which works out at the same total cost.

This definitely wouldn’t suit everyone but I think the option would be good.
 
These “bill credits” are deceptive and an unfair practice. The carriers should be required to pay them in one lump sum and not over 30 or 36 months. It’s creating an inherent contract for the customer and preventing them from receiving the full value of their device!
 
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Ent said:
These “bill credits” are deceptive and an unfair practice. The carriers should be required to pay them in one lump sum and not over 30 or 36 months. It’s creating an inherent contract for the customer and preventing them from receiving the full value of their device!
Click to expand...
The credits over 36 months stink but why would they do that. Anyone could get credit and cancel. Should be like 24 months max though.
 
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Ent said:
These “bill credits” are deceptive and an unfair practice. The carriers should be required to pay them in one lump sum and not over 30 or 36 months. It’s creating an inherent contract for the customer and preventing them from receiving the full value of their device!
Click to expand...
Though on the other hand, if they paid them out in one lump sum, the amount of credits in promos they'd offer would be much lower as they'd have no incentive to offer such big discounts.
 
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I probably pay way more than I need to, but I haven't had a cellular plan with a contract in over a decade.

Drag'nGT said:
I can handle a 2yr upgrade cycle but I can’t handle 3yrs.
Click to expand...
How does this work, does your phone company give you a new phone after the term, or is it a discount toward a new phone?
 
vertical smile said:
I probably pay way more than I need to, but I haven't had a cellular plan with a contract in over a decade.


How does this work, does your phone company give you a new phone after the term, or is it a discount toward a new phone?
Click to expand...
The promos are not contracts. They give you monthly credits towards the new phone. Cancel anytime, but credits stop.
 
It’s pretty simple. Someone at VZ/AT&T/TMobile determines the ROI / payback of subsidizing your upfront equipment cost (net of the market value of your trade) against the monthly recurring revenue of the plan from the customer over 24, 30, or 36 months. The longer you’re paying for your plan, the more revenue / margin they have to play with in terms of the subsidy.

The way it’s positioned as an equipment discount or a “free phone” is just that. Positioning. This is just a different way of doing the old subsidized phone contract without calling it a “penalty if you leave.” Now it’s a “discount incentive if you stay”

Don’t want to be stuck with the carrier for 24 or 30 months? Simple, don’t accept the additional discount. Get the best deal you can on buying the phone outright (whether upfront or with no penalty for early payoff) and you’re free to switch whenever you want. Want the additional discount? Then you take it with the strings attached. Your choice.
 
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Since I have 2 phone, each renewing 1 year after the other, these bill credits are fine by me. I will be able to trade in my IP11 for free for a new IP13. I have zero plans of leaving Verizon as their coverage is the only reliable one in my area so “locking” be to them is no issue at all.
 
Ent said:
These “bill credits” are deceptive and an unfair practice. The carriers should be required to pay them in one lump sum and not over 30 or 36 months. It’s creating an inherent contract for the customer and preventing them from receiving the full value of their device!
Click to expand...

I'm sure there would be plenty of people mad if they had to wait 36 months for their lump sum :)
 
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According to the Apple website, Verizon is offering $800 in trade-in credits for my 11 Pro Max over 30 months with the Verizon Device Payment Program. If I go with this, do I have the option of upgrading early next year?
 
iLoveMyApple said:
According to the Apple website, Verizon is offering $800 in trade-in credits for my 11 Pro Max over 30 months with the Verizon Device Payment Program. If I go with this, do I have the option of upgrading early next year?
Click to expand...

Nope. Just pay for it upfront. No worries. If can’t do this you probably can’t afford it in first place.
 
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jbachandouris said:
That's why I stick with Apple's IUP. I can upgrade every year or wait the full 24 months.

Of course I upgrade every year..... :(
Click to expand...

$640 is the value for a 12 pro traded in

isn’t that a better deal to buy outright and trade up buying the newer outright?

Considering at 12 months with IUP you’ve paid for half of the phone with ac+ Price bundled in there and you’re going to restart payments from zero with iPhone 13?
 
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Ent said:
These “bill credits” are deceptive and an unfair practice. The carriers should be required to pay them in one lump sum and not over 30 or 36 months. It’s creating an inherent contract for the customer and preventing them from receiving the full value of their device!
Click to expand...
Wait…

So I buy an 11pro two years ago for $999. Use it every single day, probably hours on end. After 2 years of daily regular use, AT&T offers me $1000 for it. No one else, Swappa, EBay, etcs even comes close to offering me $1000 for my 2year old phone.

And you think they should just give it to me in one lump sum? Really? How does that make business sense?

In all offers you should ask “what’s the catch”. And then determine if “the catch” is worth it to you. But let’s not live in lollipop-land where free iPhones rain from the sky.

I look at that offer. I am a 2 year kind of updates. And I could be convinced to keep my phone for 3 years. Been a customer since 1999. I’ll probably still be their customer in 2029.
But let’s say in 2 years, I get talked into going for a new phone or new carrier.

Oh no! I will forfeit $330.

Wait… I would totally say this phone iPhone 13 pro is worth $330 for 2 years of use.

Its only deceptive if you refuse to live in reality.

Don’t want to get scammed? Buy that phone for $999 out of your wallet and you are free to change phones and carriers on a whim.
 
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