Carrier T-Mobile Jump! On Demand Pricing for iPhone 6s 64gb

[mvnjpy]

There's no sales tax at all unless you decide to buy it. At that point you pay all the taxes.

I don't think that's true at all. If anything, my initial deposit had taxes for sure. The contract also mentions that taxes are paid up front by t-mobile and collected pro-rata as part of the monthly payments.

The math in the rest of your post is questionable too. You're rounding numbers way too much in ways that's favorable for your argument.

After 1 year, you'll have paid 100+20*12+taxes which is above 350. If you upgrade at that point, you're essentially selling a 750$ phone (on which you've paid 350$) for 400$. Pretty sure in a year, you can easily sell an iPhone 6s 64gb for at least 500$ (which you mention to have done with the iPhone 6). Also, I don't know why you say your iPhone 6 cost 900$ (400+500). With taxes, it's really at most 800 unless you live somewhere with really ridiculous taxes.

Anyway, I think the only good part of this T-Mobile deal is getting the phone effectively 100$ off. Upgrading with "Jump On Demand" after a year essentially costs you about 100$, but I'd rather just go through the hassle of selling it myself if it makes me an extra 100$.

 

[Gregintosh]

The original iPhone 6 Plus 64Gb was $849 + 10% sales tax where I am, so total came out around $933. I sold it for $500 on eBay, minus PayPal and eBay fees and shipping and such, it'll be around $450 net. So effectively less than half the value in one year.

On T-Mobile, I paid $99 up front and will be paying $23 a month for the first year. 23x12 = 276. Add the $99 upfront and it's about $375 for one year. After that time I can jump to the next one and start over.

So $375 spent on JOD, where as without it on my iPhone 6 Plus I spent $480 or so considering the original full price purchase and what I got out of it.

It is clear that JOD is a better deal.

Even if it were break even it's still a lot less stress/hassle to return to T-Mobile versus trying to find a buyer on Craigslist or eBay and going through all that.

T-Mobile collected no sales tax from me. I'm guessing the sales tax policy on leases depends on your state. I'm im Chicago, IL. My total at the register was a solid $99. Some states like California or others may differ.

Edit: corrected some of the numbers.

 

[mvnjpy]

I thought we were talking about the 6s 64gb, but anyway if we're talking about the 6s plus 64gb, then selling for 500 is way under market value. You could have easily sold it for 600 even now. If you sold it for market, you would have pocketed 100$ more. However, the monthly rate for the 6s plus is a bit strange. The phone itself should be 100$ more, but the monthly rate only increases the equivalent of 75$ more. So, I guess the plus versions are a slightly better deal for JOD.

 

[Gregintosh]

Yeah. Well even if it was $100 more the difference between the two options is small. Honestly even if it was $100 more costly to Jump versus own and sell id jump to save the hassle and time. I hate going through the selling process. Luckily the numbers are so good for jump I don't even feel bad.

 

[aziatiklover]

I don't think that's true at all. If anything, my initial deposit had taxes for sure. The contract also mentions that taxes are paid up front by t-mobile and collected pro-rata as part of the monthly payments.

The math in the rest of your post is questionable too. You're rounding numbers way too much in ways that's favorable for your argument.

After 1 year, you'll have paid 100+20*12+taxes which is above 350. If you upgrade at that point, you're essentially selling a 750$ phone (on which you've paid 350$) for 400$. Pretty sure in a year, you can easily sell an iPhone 6s 64gb for at least 500$ (which you mention to have done with the iPhone 6). Also, I don't know why you say your iPhone 6 cost 900$ (400+500). With taxes, it's really at most 800 unless you live somewhere with really ridiculous taxes.

Anyway, I think the only good part of this T-Mobile deal is getting the phone effectively 100$ off. Upgrading with "Jump On Demand" after a year essentially costs you about 100$, but I'd rather just go through the hassle of selling it myself if it makes me an extra 100$.

I just bought an iphone 6s+ 64gb from Apple for $919.04 texas tax is 8.25. I wish I was living where you are and get it for under $900. Anyway is my math correct on here and we are saving around $288 after 18 months?

 

[predation]

my question is if you're grandfathered into the intro pricing for the 6s, will that pricing carry over to the 7? lol

 

[Doc69]

The bottom line is this: If you want to change phones every year you're best off with the Jump on Demand program. You basically pay $300/year to have possession the latest iPhone and you never have to worry about selling it later.

Please help me understand the math behind the Jump! On Demand program. Specifically what happens in year two and after. As I understand it, if I start it now, and trade in my iPhone 6 for a 6s, the advertised monthly fee is only $5 (18-months contract). So the cost for the first year will be $60 in fees plus the $400 I could have sold the iPhone 6 for. But when I switch to an iPhone 7 in 2016, and return the 6s, what happens then? A rep told me that the monthly price would then be the full price of the device divided by 24 months, i.e. $27.08 per month for a $650 device. Is that correct? But what about the sales tax? Who pays that? In CA it's over 9%.

 

[djransom]

You would pay the sales tax at the point of purchase/sale.

 

[Gregintosh]

Please help me understand the math behind the Jump! On Demand program. Specifically what happens in year two and after. As I understand it, if I start it now, and trade in my iPhone 6 for a 6s, the advertised monthly fee is only $5 (18-months contract). So the cost for the first year will be $60 in fees plus the $400 I could have sold the iPhone 6 for. But when I switch to an iPhone 7 in 2016, and return the 6s, what happens then? A rep told me that the monthly price would then be the full price of the device divided by 24 months, i.e. $27.08 per month for a $650 device. Is that correct? But what about the sales tax? Who pays that? In CA it's over 9%.

My understanding is this:

1. Yes, if you switch phones within the 18 months you will have to pay whatever the price of the phone is at that time. However, given that T-Mobile has been running promos, I bet they will have another promo for the iPhone 7 too. Worst case scenario, you end up paying the $27/month or whatever.

If you are going to keep your iPhone 6S for just 1 year so you can upgrade, I'd say you're better off paying $27/month x 10 months = $270 or so and then switch to the 7. Don't trade in your iPhone 6, sell it instead. You can get $400 to $450 for it in cash, saving $150+.

2. Sales tax will vary state by state. In some states you only pay sales tax if you "buy out" your device at the end of the 18 months. I didn't pay any sales tax upfront and I don't see it added on my bill so far, I am in Illinois.

After 18 months your choices are:

- Pay the remaining balance ($180 or so) plus sales tax and the device is yours.
- Return the device and get nothing.
- Start another lease.

I assume that most people will "Jump" to the iPhone 7 when it first comes out though versus waiting 18 months.