The economics of waiting a year

[dmaxdmax]

1 Year into a 2 yr Verizon contract:

I have a 5s/32 and want to upgrade to a 6/64. A $300 rebate makes this free. It locks me into 2 more years which is ok since Verizon is the only decent service here.

What if I wait a year? I'll own the 5s by then but it's unlikely that it will have resale value of more than $300, right? The value of the phone next year will be about the same as the value of the rebate today.

It seems like a no-brainer to take the deal as long as the contract extension isn't an issue.

Am I missing something?

 

[campingsk8er]

1 Year into a 2 yr Verizon contract:

I have a 5s/32 and want to upgrade to a 6/64. A $300 rebate makes this free. It locks me into 2 more years which is ok since Verizon is the only decent service here.

What if I wait a year? I'll own the 5s by then but it's unlikely that it will have resale value of more than $300, right? The value of the phone next year will be about the same as the value of the rebate today.

It seems like a no-brainer to take the deal as long as the contract extension isn't an issue.

Am I missing something?

Yeah, I'm pretty sure you have to be eligible for your upgrade to take part in this offer, but I may be mistaken.

 

[dmaxdmax]

Yeah, I'm pretty sure you have to be eligible for your upgrade to take part in this offer, but I may be mistaken.

So this deal works only for those who bought their 5s at full retail?

 

[campingsk8er]

So this deal works only for those who bought their 5s at full retail?

That's how I am taking it...

I have the 5S and I bought it full retail but I am NOT going through Verizon to trade it in, go on eBay or make a Facebook post and you can get at least, bare minimum $100 more

 

[leenak]

So yeah, if you bought your phone as part of a 2 year contract, you got a discounted price. If you 'break' that contract prior to 2 years, you have to pay equivalent to full price for the original phone. So getting a new phone after 1 year is essentially breaking the original contract. You'd have to contact verizon to figure it out but it isn't very economical what you want to do You will pay a lot more than free.

 

[dmaxdmax]

You will pay a lot more than free.

But I like free!

 

[leenak]

But I like free!

Don't we all! But you got a subsidized phone. Another option is you could look at the Amazon trade-in program.

I'm now considering the verizon program but from what I can read, you wouldn't get a gift certificate until after you turned in your phone. So if you wanted to pre-order, you'd be without a phone for a week.

 

[groupersandwich]

Don't we all! But you got a subsidized phone. Another option is you could look at the Amazon trade-in program.

I'm now considering the verizon program but from what I can read, you wouldn't get a gift certificate until after you turned in your phone. So if you wanted to pre-order, you'd be without a phone for a week.

No, you have 30 days to turn your phone in AFTER you initiate the trade-in process. You just won't get your gift card until 2 weeks after they receive your phone. So if you initiate your trade-in online today, pre-order before the sun comes up tomorrow, you will keep your old phone until you iPhone 6 arrives. That's what I'm doing with my iPhone 5. Prices locally are only going for about $225 on craigslist, so this is close enough for me and a lot less hassle. I don't trust Gazelle or eBay.

 

[leenak]

No, you have 30 days to turn your phone in AFTER you initiate the trade-in process. You just won't get your gift card until 2 weeks after they receive your phone. So if you initiate your trade-in online today, pre-order before the sun comes up tomorrow, you will keep your old phone until you iPhone 6 arrives. That's what I'm doing with my iPhone 5. Prices locally are only going for about $225 on craigslist, so this is close enough for me and a lot less hassle. I don't trust Gazelle or eBay.

That isn't what their website says
https://www.trade-in.vzw.com/home.php5?c=en-us

Your Verizon Wireless Virtual Gift Card will be delivered electronically to the email address you provided during the online submission within 2 weeks from the time we receive your device.

 

[leenak]

And I read the verizon trade in thread. Basically, they will give you a gift card but the gift card can be used towards your bill.

 

[accountforit]

I don't trust Gazelle or eBay.

You don't trust ebay? One of the most successful websites ever created? This is what paranoid people say.

If you want to cut yourself short, then trade your phone in. There is a reason they allow you to trade it in.....they sell it for more.

 

[groupersandwich]

That isn't what their website says
https://www.trade-in.vzw.com/home.php5?c=en-us

Your Verizon Wireless Virtual Gift Card will be delivered electronically to the email address you provided during the online submission within 2 weeks from the time we receive your device.

That IS what they say, and what I said. You get it two weeks AFTER they receive your phone. And you have 30 days to get your phone to them. I verified this on their site and via chat with customer service. You shouldn't have to be without a phone a single second through this entire process.


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You don't trust ebay? One of the most successful websites ever created? This is what paranoid people say.

If you want to cut yourself short, then trade your phone in. There is a reason they allow you to trade it in.....they sell it for more.

I've been scammed through eBay and lost money AND an item, so no, I don't trust them. The way their rules are now you have almost no protection as a seller.

 

[leenak]

That IS what they say, and what I said. You get it two weeks AFTER they receive your phone. And you have 30 days to get your phone to them. I verified this on their site and via chat with customer service. You shouldn't have to be without a phone a single second through this entire process.

I wasn't aware the gift certificate could be used towards your bill. I thought the gift certificate was used to buy the phone.

 

[dmaxdmax]

What about glyde? Their suggested list price is $371. My early penalty should be in the low 200's. It means I could get a 6/16 for about $30 or a 6/64 for about $130. Not bad.

But I'm sure there are fees for transferring the number etc. Ugh.

***********

Never mind. It didn't take much research to tell me to avoid glyde.

 

[groupersandwich]

What about glyde? Their suggested list price is $371. My early penalty should be in the low 200's. It means I could get a 6/16 for about $30 or a 6/64 for about $130. Not bad.

But I'm sure there are fees for transferring the number etc. Ugh.

The median price on Glyde for my 5 is only $226. It goes to $167 if I decide to keep the charger. I briefly listed it for sale locally on Craigslist and only got low ball offers of $150-$180. BTW, for a 5S Verizon is giving $300, not $200. For the little bit extra that these phones fetch, it seems reasonable to me to go the safe route and get my $200 for my ip5.

BTW, the "in the pocket" amount on Glyde for my 5 at the median price is $200.92 (they charge a transaction fee and a mailer fee). $.92 doesn't seem worth it to me.

 

[dmaxdmax]

The median price on Glyde for my 5 is only $226. It goes to $167 if I decide to keep the charger. I briefly listed it for sale locally on Craigslist and only got low ball offers of $150-$180. BTW, for a 5S Verizon is giving $300, not $200. For the little bit extra that these phones fetch, it seems reasonable to me to go the safe route and get my $200 for my ip5.

I agree except I'm not eligible for upgrade, can't get the $300, and have to pay the early penalty.

 

[groupersandwich]

Yeah, that would make a difference. I didn't see that part originally. LOL

 

[accountforit]

I've been scammed through eBay and lost money AND an item, so no, I don't trust them. The way their rules are now you have almost no protection as a seller.

This just means you didn't read and follow the guidelines before doing business. There is a lot of protection. I have done $150,000 in revenue on ebay annually for the past 6 years and never once been "scammed".

 

[groupersandwich]

This just means you didn't read and follow the guidelines before doing business. There is a lot of protection. I have done $150,000 in revenue on ebay annually for the past 6 years and never once been "scammed".

Congrats to you. You want a cookie for accomplishments? I'm not a professional ebayer, have been scammed and therefore don't trust it. I'll forgo the additional $25-$50 I could get for my ip5 and take the safe route. You're under no obligation to do the same.

 

[accountforit]

Congrats to you. You want a cookie for accomplishments? I'm not a professional ebayer, have been scammed and therefore don't trust it. I'll forgo the additional $25-$50 I could get for my ip5 and take the safe route. You're under no obligation to do the same.

No, but you can give me a cookie for having common sense enough to know, as an adult, you should read policies before doing business. Don't they teach you to read, learn, and follow rules in kindergarten?