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SE: NEXT installment or buy outright?
- Thread starter drewaz
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I'm currently eligible to upgrade my line at the moment, however I'm waiting for the fall when the new iPhone(s) are usually going to be released. This will be my first time having to decide if I want to go the AT&T NEXT route or pay for the phone outright. I'm not worried about having to pay any "upgrade/activation fee" because my account has a FAN account associated with it. I've got a few questions about NEXT:
1. If the device I'm interested in getting costs $700 and I currently have $300 cash on me at the time, can I put that $300 down for the purchase of the phone and pay installment payments on the remaining $400 balance?
2. If I'm on NEXT and the phone experiences a manufacture defect, or if I accidentally break it..how would that be dealt with on NEXT?
1. If the device I'm interested in getting costs $700 and I currently have $300 cash on me at the time, can I put that $300 down for the purchase of the phone and pay installment payments on the remaining $400 balance?
2. If I'm on NEXT and the phone experiences a manufacture defect, or if I accidentally break it..how would that be dealt with on NEXT?
Your FAN covers those? I've heard of that, but sadly mine doesn't...I'm a tad jealous having added 3 lines recently!
I think they only have a Next with 30% down option...not sure if that's negotiable - best to check with AT&T. I know you can always pay the balance off at the back end, but not necessarily more up front.
You can take it to Apple and get it repaired/replaced. Basically as far as AT&T cares, you're just paying for "a phone" - even it says that for the trade-in aspect of Next, you need to just turn in the model of the phone you're making payments on:
https://www.att.com/shop/wireless/next.html
"Requires trade-in of your financed smartphone or one of same make/model in fully functional and good physical condit"
Well one way to deal with this is not buy the phone on ATTs plan. I'll be buying mine directly from Apple, sim free, on their monthly plan. No interest, no compromise. $500 goes into a money market, and I'll earn interest on the deal.
They were charging a $15 upgrade fee when I was on a 2 year contract also. And once you start on the NEXT program, I don't think you have to pay a fee when you upgrade. $15 would be 1.5% of my 128gb 6s+. Sure, I would have preferred not to pay it. But if I was worried about $15 then I would not have bought a $1000 phone.
Personally, I prefer paying outright. I understand the logic behind the 0 percent loan, but the fact remains, in this current society, there are so many demands on my limited resources - I mean subscription/monthly payments.
In an economic sense, I could invest the money that is not going towards the phone, but in reality, this turns into another monthly payment I need to manage. Its the small foxes that spoil the vineyard, and 20 bucks, 15, dollars there adds up in a general sense. I'd rather buy it outright and not worry about future payments.
In an economic sense, I could invest the money that is not going towards the phone, but in reality, this turns into another monthly payment I need to manage. Its the small foxes that spoil the vineyard, and 20 bucks, 15, dollars there adds up in a general sense. I'd rather buy it outright and not worry about future payments.
I would agree. I avoid financing my phones at all costs. One never knows where life may take you, so being able to pay off the device up front and not having a monthly payment can be a savior in the even that life runs its course, you lose your job and now ruin you're credit because you cant afford to pay 20-30$ a month for a device you could of paid in full back when you had the money.
In case you are referring to Apple's "iPhone upgrade program", it's not available for the SE.
Great plan! That will probably earn you about one or two McDonalds value meals over 2 years.
They were charging a $15 upgrade fee when I was on a 2 year contract also. And once you start on the NEXT program, I don't think you have to pay a fee when you upgrade. $15 would be 1.5% of my 128gb 6s+. Sure, I would have preferred not to pay it. But if I was worried about $15 then I would not have bought a $1000 phone.
Att will keep charging next fees each time u do the next program. It's simply a cash cow in terms of revenue. Easy money.
Just remember they have gone from $18 to $40 in upgrade fees for those on 2 year contracts.
Pretty soon all the major carriers will collide and do the same with their financing plans. Just wait.
Their usual response for these fees is "it's standard fees in the industry". Of course it's standard fees when all of them collude together.
Let's just see how I carriers T-Mobile wants to be. Just as they have starting cracking down on their unlimited data users and their ceo knows that's not sustainable. Their will come a time in the short future when T-Mobile will start charging "fees" for installment "0%" interest.
They were charging a $15 upgrade fee when I was on a 2 year contract also. And once you start on the NEXT program, I don't think you have to pay a fee when you upgrade. $15 would be 1.5% of my 128gb 6s+. Sure, I would have preferred not to pay it. But if I was worried about $15 then I would not have bought a $1000 phone.
If you invest the same money you would have otherwise paid upfront in a good interest bearing account, you will earn more interest than that $15 represents.
False. Show me a money market or CD account that's paying more than 1%. With 500$ it would take you 3 years at 1% to make back that 15$.
Promo at my credit union. First500 earns 5% APY. That covers the cost of the most expensive iPhone SE.
Many current US savings bonds will earn you more than 1%.
There are deals like this everywhere for the financially savvy.
This makes no sense. First of all, why would you buy an iPhone if your financial situation were risky? Second, making a lump sum payment has a bigger impact on your wallet! Either way you'd be screwed. how do people not understand simple maths?
Never said about buying with a risky situation. You could be fine one day and **** happens. Anyone could get laid off or lose their job without there ever being a sign of trouble. The lump sum once paid is out of the way, id rather risk not having the money in my pocket than the longterm effect of ruining my credit.
Stuff happens, and its nice to have low monthly bills. As a home owner, and parent, I'm dealing with a lot of monthly bills, so I'm not jazzed up about adding to the mix, even if it is a zero percent loan. Sometimes just buying it outright, for simplicity sake makes the most sense.
I agree with you. Im on you're side of the argument. Im all for not adding on payments when you can afford something outright. Like I said, ruining you're credit long term is so much more valuable than gaining an extra 20$ in interest letting the money sit.
Thanks for the heads up on this. Now by purchasing my iPhones with an Amex card and paying my cell phone bill with a Wells Fargo Card I have extended warranty, damage and theft protection for all of my family's cell phones at no additional cost.
