T-Mobile Jump

Discussion in 'iPhone' started by Gonzo3333, Jul 14, 2013.

  1. Gonzo3333 macrumors 6502a

    Gonzo3333

    Joined:
    Mar 30, 2009
    Location:
    Chicago, IL
    #1
    Anybody with an iPhone 5 and T-Mobile switch to the Jump program yet? I just did. When I switched to T-Mobile on the iPhone 5 launch day I decided to get the insurance for the phone, something I normally would not do. When I found out that the Jump program included insurance and was $2 less than the insurance policy I originally got with my phone I said why not. Not only is it cheaper but I have the option to upgrade my phone up to 2 times a year after the first 6 months I enrolled in Jump. Anyway, I was just curious to see how many other people will want to do this, or how many people will think that Jump is a bad idea.
     
  2. atteligibility macrumors regular

    Joined:
    Sep 14, 2012
    #2
    I think TMO did a terrific job at presenting this as a $10/month program, but people don't seem to realize they're also returning their phone, for which they have paid a down payment and $20/month.

    Compare to your previous plan with insurance, you're not paying only $2/month extra, you are also giving away $400 worth of phone when you're exchanging it.

    If you're in it for the long term, you're effectively renting a phone.
    Assuming you were to get the new iPhone every year, you would end up paying $150+$20*12+$10*12 =$510/year for renting the phone
    The alternative is paying $650 for it every year, and sell back the old one for $400, i.e. $250/year. You could add Apple Care to it, a much much better insurance than what you're getting with TMO, and still paying much less.
     
  3. Agent-P macrumors 68030

    Agent-P

    Joined:
    Dec 5, 2009
    Location:
    The Tri-State Area
    #3
    I agree that T-Mobile did a fantastic job of presenting this. But even with knowing the actual cost, it isn't a bad option for those who like trying out competing platforms from time to time.
     
  4. Gonzo3333 thread starter macrumors 6502a

    Gonzo3333

    Joined:
    Mar 30, 2009
    Location:
    Chicago, IL
    #4
    I didn't get an iPhone with the intention of selling it when upgrading so I think that this plan will work nicely for me. I also don't want to go through the hassle of selling my old phone, I have more important things to do with my time and time is money for me.
     
  5. atteligibility macrumors regular

    Joined:
    Sep 14, 2012
    #5
    Not following you, you're saying that even knowing that you can achieve the same result by buying and selling the phone yourself, for half the cost, it is still a good option? mmm... ok
     
  6. 617aircav Suspended

    Joined:
    Jul 2, 2012
    #6
    Wow total cost for 6 months is $280. And if you fail to upgrade after 6 months the cost continues to mount and it is less a value.
     
  7. atteligibility macrumors regular

    Joined:
    Sep 14, 2012
    #7
    "time is money for me" :) got to love those canned sentences.

    Since I sell my iPhone every year, let me run you the process I go through:
    - a Monday morning while at my desk, post ad on craigslist for iPhone to sell, 2 lines to write, no particular effort
    - 5 minutes later, 20 emails from people wanting to buy my iPhone, pick the most reasonable one
    - While on lunch break, meet with the person, exchange phone for $400

    The whole process takes no effort at all, and virtually no time.

    But if the convenience of the t-mobile process is worth $200 to you, then sure, I can't argue with that.

    I find it strange though that, as you did on your initial post, people would insist on the fact that it is a great way to save money... but when presented with the math, you are now telling me that you're willing to pay a $200 premium to save 5 min of your time, because your time is money... haha, you need to pick one and go with it, either a great way to save money (which it isn't), or a very convenient way to switch phone (at a premium)

    Note though that places like best buy, and even apple store I believe, also have trade in programs that don't require you to pay a monthly fee, I believe they are much better option if you want to avoid craigslist for whatever reason.
     
  8. deeddawg macrumors 604

    Joined:
    Jun 14, 2010
    Location:
    US
    #8

    Personally I'd skip the program, I'd hand-me-down to a family member or resell, but I comprehend that others have different priorities in their lives.

    FYI, its cheaper by more than half to make your own pizza vs. ordering. Yet many gladly pay through the nose for convenience. :cool:
     
  9. atteligibility macrumors regular

    Joined:
    Sep 14, 2012
    #9
    I understand that. I am just afraid that most people jumping into this program (no pun intended), do it with the OP impression that they're getting a great deal, not that they're enjoying the possibility of paying a premium for a no hassle service.

    Let's face it, if you have the mentality of paying a premium for a higher quality service, you're most likely not a TMO customer.

    So again, they did great, they're going to have people pay $20 installment +$10 jump every month, and another $150 every year, and yet they will never own more than 50% of a phone, clever...
     
  10. deeddawg macrumors 604

    Joined:
    Jun 14, 2010
    Location:
    US
    #10
    Kind of like folks thinking Gazelle et al are a great deal, thanks for clarifying your point.

    Be interesting to run the numbers on typical android handsets, seems they don't hold value as much as iPhones and there seems to be a new "gotta get it" phone every few months. Purely a guess about value though, I could be wrong.
     
  11. Agent-P macrumors 68030

    Agent-P

    Joined:
    Dec 5, 2009
    Location:
    The Tri-State Area
    #11
    I realise I wasn't clear. I was agreeing with you that T-Mobile packaged the idea well so that it sounds like a really good deal. And then I was saying that even with knowing that you lose some money using this approach vs selling it yourself, it's more convenient so frequent upgraders might find that the cost is worth it for the convenience.
     
  12. djransom macrumors 68040

    djransom

    Joined:
    May 14, 2008
    Location:
    Chi-Town
    #12
    From what I understand with the way the program works that you trade in your old phone and pay the subsidized pricing for the new iPhone which would be $200 and up. I don't see where the installments would come in to play anymore. Maybe I'm missing something.
     
  13. deeddawg macrumors 604

    Joined:
    Jun 14, 2010
    Location:
    US
    #13
    They never go away. You continue to pay the phone installments, though presumably it's reset to a new 24 month term with the appropriate monthly installment for the new phone.

    On top of that you also pay the $10 per month to be enrolled in the JUMP program.
     
  14. djransom macrumors 68040

    djransom

    Joined:
    May 14, 2008
    Location:
    Chi-Town
    #14
    Interesting.
     
  15. freediverdude macrumors 6502a

    Joined:
    Dec 26, 2006
    #15
    This sounds like it could be an ok deal for the android people who could get the latest and greatest every 6 months this way, and the previous phone not worth all that much. Probably not such a great deal for the once-a-year iPhone people who still have a valuable phone after 12 months.
     
  16. TheProFTW macrumors regular

    Joined:
    Jun 27, 2013
    Location:
    Washington, DC
    #16
    Yet, you're never finished paying the phone, you only pay 1/3 of the phone until you switch to a second phone.
     
  17. deeddawg macrumors 604

    Joined:
    Jun 14, 2010
    Location:
    US
    #17
    At month six you've paid $332 on JUMP ($146 + 6*31) and owe $378 (18*21) on the phone. Do the upgrade, you now have a new phone. You're $509 ($146+332) out of pocket and owe $504 (18*24).

    On the normal financing at month six you've paid $272 and owe $378. Pay off your phone, buy a new one at $146 down, and sell your old one for $400 net. You're now $396 ($272 + 146 - 400) out of pocket and owe $504 on the new phone. Better choice by $113.

    It gets even worse for JUMP program participants if they upgrade yearly.

    Again this assumes no value to the insurance and that the person wouldn't otherwise buy the insurance. If you are a phone insurance kind of person the numbers will be different.
     
  18. Truefan31 macrumors 68040

    Truefan31

    Joined:
    Aug 25, 2012
    #18
    I think the main appeal is that it includes insurance. Most carrier insurances alone are around 10 a month, so the jump adds some options for upgrading.

    Is it ideal for us? It's opinion but I applaud tmobile for trying something different
     
  19. atteligibility macrumors regular

    Joined:
    Sep 14, 2012
    #19
    Not sure if some of you guys don't read the whole description AND don't read the comments here either, but you guys seriously need to stop thinking that this thing is $10 a month, and comparing it to other $10/month insurances.

    This doesn't cost $10/month, IT COSTS $10/MONTH + YOUR OLD PHONE (minus the rest of your installments).
    If you were to exchange your iPhone every year for example, it is as if you were buying out the rest of your installments ($240) then resell it to them for $240. That would essentially achieve the same result.
    Not only would you lose money on the trade ($400 market value - $240 trade in=$160), but you would spend $10/month to get that privilege.
    So essentially here, you are trading in your phone for $240-12*10=$120.

    Any other trade in programs would give you $300+ for the same phone, you could go around $400 on craigslist.

    That means you're short $180-280 vs a regular trade in program.
    Sure you've got crappy insurance for that extra fee, but that means the insurance TRUE cost is $15-$23/month

    Why would people not take a second to do the math, it's not complicated!!!

    Again, Jump = trade in program + insurance
    Two main ways to look at it:
    - Insurance =$10 . Trade in value=remaining of your installments (since you give up your old phone in exchange of not paying the rest of installments for it). If you have a year=20*12=$240 to go, then trade in value is $240
    - Or if you assume their trade in value is fair market price, then this is equivalent to a $15-$23/month insurance (see calculations above)

    Sorry for the long post, but I am frustrated to see so many people falling for the TMO misleading presentation.

    ----------

    I actually applaud them too, for crafting a marketing masterpiece.

    Trade-in and insurances are two high profit areas where operators are trying to expand lately, but are probably the least sexy of their services as the consumer always feels taken advantage of.

    Somewhat, they managed to bundle the two together, give it a fun name, take even more advantage of the customer than usual on those services, and yet get people excited.

    I applaud that, this is genius.
     
  20. AutoUnion39 macrumors 601

    AutoUnion39

    Joined:
    Jun 21, 2010
    #20
    Lol, at all the "time is money" comments.

    It literally takes a few hours to sell an iPhone on CL. My record is about an hour so far for my old 3G
     
  21. CEmajr macrumors 601

    Joined:
    Dec 18, 2012
    Location:
    Charlotte, NC
    #21
    Since Apple only releases 1 iPhone per year and iPhones hold their resale value pretty well (except the Sprint models), this is a much better deal for Android users than iPhone users.

    -Pay $150 for iPhone 5S at release
    -Make $240 worth of payments over the next 12 months
    -Pay $120 for JUMP

    At month 12 you've paid $390 for your iPhone plus $120 for this program. Total $510

    Then at month 12 let's say the iPhone 6 comes out, you give your 5S back to T-Mobile for $240 to pay what you still owed on the phone and pay $150 down to get the 6.

    We all know a year old iPhone model usually sells for like $300-400 when the newest model comes out so not as great a deal unless you're one of the people who would have bought the old $12 insurance anyway.

    For Android users it's a great deal.

    -Get the Galaxy S4 right now for $99 down
    -Make 6 months worth of $20 payments, total $120
    -Pay 6 months worth of JUMP payments, total $60

    At month 6 you have:
    -Paid $210 for your phone plus $60 for JUMP (total $270)
    -You still owe $360 on your phone

    T-Mobile will guarantee you a trade-in value of $360 for your S4 and you can upgrade to the Note 3 for $150 (or whatever they charge for it when it comes out). Since the resale value of Androids drops much faster than iPhones, $360 guaranteed from a carrier for a 6 month old Android device is a great deal. On par with what you would get from Craigslist/eBay which is unheard of.

    So for us iPhone users as usual we are better off selling our phones ourselves because carriers won't give close to the value of what they fetch on eBay/Craigslist. It's not bad though for those who would rather have an easy trade-in at their carrier.
     
  22. deeddawg macrumors 604

    Joined:
    Jun 14, 2010
    Location:
    US
    #22
    Agreed. Not a deal for iPhone users due to the release cycle and value retention. Not that bad a deal for Android users for the same reasons, provided people are happy to jump brands/types every six months.
     
  23. atteligibility macrumors regular

    Joined:
    Sep 14, 2012
    #23
    Your math is misleading and the conclusion is therefore incorrect.

    In the case of the iPhone:
    - If, as you did, you consider that you paid $510 for the iPhone, you can't say that TMO is taking the phone back for $240, you're mixing cash flow with debt, just doesn't work.
    - The "virtual" transaction of TMO giving you $240 for your phone goes hand in hand with you "virtually" paying the reminders of your installments ($240), resulting in a null cash flow operation (effectively, there is no cash exchanged in you giving your phone back).
    - Therefore if you want to consider that TMO gave you $240 for the trade in, you have to consider that you paid $510+$240 for your phone=$750

    The best way to not make reasoning mistakes here is really just to consider cash flow, what goes in and out of your pocket just doesn't lie.

    For iPhone, every year swap with Jump:
    - new phone: $150
    - installments: $240
    - Jump: $120
    Total: $510

    For iPhone, craigslist resale:
    - new phone: $650
    - resell old phone: $-400
    Total: $250

    Galaxy S4, 6 months swap with Jump:
    - new phones: 2*$99=$198
    - installments: $240
    - Jump: $120
    Total: $558

    Galaxy S4, 6 month swap with resale on Craigslist
    - new phones: 2*$620=$1,240
    - resell 6 month old phones: 2*$400=-$800
    Total: $440


    Yes Android works better with Jump than iPhone, but it's not on par the DIY craigslist method.
     

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