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

[Macwick]

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?

 

[invisibleshoes]

You forgot tax if I'm not mistaken, but I also think the payoff any time is too good to be true.

 

[Macwick]

You forgot tax if I'm not mistaken.

True but tax is the same in both scenarios so I didn't include it.

 

[invisibleshoes]

Also there's an exclusion that the phone has to be active on a line for 30-90 days.

 

[invisibleshoes]

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?

 

[Macwick]

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?

I'm including the $7/month credit in my numbers (the monthly payment is $26/month - $7 credit).

 

[invisibleshoes]

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

 

[Macwick]

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?

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.

 

[invisibleshoes]

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.

 

[Macwick]

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.

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