Carrier T-Mobile JOD - early payoff too good to be true?

Discussion in 'iPhone' started by Macwick, Sep 27, 2015.

  1. Macwick macrumors regular

    Joined:
    Dec 9, 2008
    #1
    What am I missing here.

    I just ordered an iPhone 6s 64GB from T-Mobile today through their JOD program. Details:

    $99.00 down
    $19/month x 18 months
    $182 buyback after 18 months
    Total cost of ownership: $623 (~$127 off retail price)

    No surprise there - everyone knows the JOD price is a decent discount to keep you w/ T-Mobile for 18 months.

    But here's the surprising part - I asked the customer service rep if I could 'pay off the phone early'. He said sure, you can pay off the remaining lease payments + buyback at any time.

    So - next month I could pay it off and I'll own an unlocked iPhone 6s for $623? What am I missing.

    Has anyone else heard that early payoff is an option or was this rep mistaken?
     
  2. invisibleshoes, Sep 27, 2015
    Last edited: Sep 27, 2015

    invisibleshoes macrumors regular

    Joined:
    Sep 20, 2014
    #2
    You forgot tax if I'm not mistaken, but I also think the payoff any time is too good to be true.
     
  3. Macwick thread starter macrumors regular

    Joined:
    Dec 9, 2008
    #3
    True but tax is the same in both scenarios so I didn't include it.
     
  4. invisibleshoes macrumors regular

    Joined:
    Sep 20, 2014
    #4
    Also there's an exclusion that the phone has to be active on a line for 30-90 days.
     
  5. invisibleshoes macrumors regular

    Joined:
    Sep 20, 2014
    #5
    Actually, wait a minute. I thought they apply a $7/month credit to your bill (they do not give you the discount straight up). In which case that makes it more than $623, if you decide to buy it out next month. Do I have my math right?
     
  6. Macwick thread starter macrumors regular

    Joined:
    Dec 9, 2008
    #6
    I'm including the $7/month credit in my numbers (the monthly payment is $26/month - $7 credit).
     
  7. invisibleshoes macrumors regular

    Joined:
    Sep 20, 2014
    #7
    I'm not sure where you reside so I'm just gonna calculate with CA tax rates (7.5%)
    Retail price of $750+$56.00(tax) is $806

    First month credit $806 - $7 = $799** This is the amount of your payoff

    You haven't gone through all the months yet
     
  8. Macwick thread starter macrumors regular

    Joined:
    Dec 9, 2008
    #8
    You might be on to something here. I bet if you payoff early, you lose that discount on all remaining months. And that discount is the exact same as the savings on the phone (7*18 = $126).

    Oh well, still a good deal if you stick with T-Mobile for any period of time.
     
  9. invisibleshoes macrumors regular

    Joined:
    Sep 20, 2014
    #9
    Yeah, you have to stick it out with the lease in order to get the discount. Either way, a good deal. About $100 off retail.
     
  10. Macwick thread starter macrumors regular

    Joined:
    Dec 9, 2008
    #10
    Makes sense. Well, perfectly happy w/ T-Mobile (with the exception of coverage). Hopefully the new band 12 will make a big difference there.
     

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