Carrier Those Who Can Still Sign 2 Year Contracts - the Lucky Ones?

[puma1552]

I've always bought my phones through 2 year subsidized contracts, always getting a phone for $299.

I'm on Verizon, so I can still do this. I'm on a launch day 6, and after September 19th, I can get a new 64GB SE on contract for just $50, or presumably a 128GB 7 for whatever subsidized pricing is offered ($299 unless Apple raises prices, so maybe $350ish?).

Contracts really suck, nobody disputes that. Paying cash to own the phone outright is great, and all the installment plans probably fall somewhere in the middle. But there's one difference between the contract and all other methods - the contract is by far the de facto cheapest option, is it not? Assuming another year of $299, the phone is basically free or close to it after selling/trading your current out of contract subsidized phone (a 6 in this case). Can even profit depending on selling method.

To be honest I don't really want to sign another contract, but is it not true that this is indeed the cheapest way - should those of us who still have the contract option be considered "lucky"? Would you sign a contract if you still had the option?

 

[comptr]

I've always bought my phones through 2 year subsidized contracts, always getting a phone for $299.

I'm on Verizon, so I can still do this. I'm on a launch day 6, and after September 19th, I can get a new 64GB SE on contract for just $50, or presumably a 128GB 7 for whatever subsidized pricing is offered ($299 unless Apple raises prices, so maybe $350ish?).

Contracts really suck, nobody disputes that. Paying cash to own the phone outright is great, and all the installment plans probably fall somewhere in the middle. But there's one difference between the contract and all other methods - the contract is by far the de facto cheapest option, is it not? Assuming another year of $299, the phone is basically free or close to it after selling/trading your current out of contract subsidized phone (a 6 in this case). Can even profit depending on selling method.

To be honest I don't really want to sign another contract, but is it not true that this is indeed the cheapest way - should those of us who still have the contract option be considered "lucky"? Would you sign a contract if you still had the option?

2 year contracts are not the cheapest option on Verizon. Depending on What plan you have you dont menshion that in the post your plan, the newer plans have a have a "device subsidy" dpending on the plan its anywhere from 15.00 to 25.00 per month towards the device payment on a phone on Verizon device payment. So it makes the phone cheaper then 2 year.

 

[mjwebb]

I'm with Verizon as well, and personally I am done with the 2-year contracts. For the iPhone 7 I am actually upgrading to the iPhone Upgrade Program so I can get the newest iPhone every year, so I believe that's cheaper than doing a 2-year contract and I have the freedom to switch carriers as well.

Since the iPhone 4 (when it came to Verizon) I've had 2-year contracts for the iPhone 4, 5, & 6 (I've never had an S iteration) but when you look at it, it IS cheaper to have your phone unlocked. Under my new Verizon data plans, its $20 a month on my bill for unlocked phones whereas a locked, 2-year contract phone is $40 a month on the bill instead.

So I believe buying the phone unlocked will end up saving you money in the long run, even though it doesn't seem like it.

 

[bufffilm]

You have to understand that Verizon (of the big 4) is the only carrier still subsisting phones if you were with Verizon prior to 2015 (or thereabouts, I think).

So yes, if you qualify (and I'm like you in that regard)...unquestionably, it's a nice saving.

Since 2015, you might still sign up for a 2 year plan still, but the cost of the phone is divided by 24 monthly installments.

 

[puma1552]

2 year contracts are not the cheapest option on Verizon. Depending on What plan you have you dont menshion that in the post your plan, the newer plans have a have a "device subsidy" dpending on the plan its anywhere from 15.00 to 25.00 per month towards the device payment on a phone on Verizon device payment. So it makes the phone cheaper then 2 year.

I have the Single Line Loyalty plan - $60/mo for 2GB and unlimited talk and text. I don't believe there is any device portion in there (it does not break down further on their site). My total bill with tax and BS fees is $66/month, so I don't think there's any device portion in there, and I plan to keep the same plan.

 

[Givmeabrek]

I have the Single Line plan - $60/mo for 2GB and unlimited talk and text. I don't believe there is any device portion in there (it does not break down further on their site). My total bill with tax and BS fees is $66/month, so I don't think there's any device portion in there, and I plan to keep the same plan.

You are paying about $20 a month for the phone, even if you go beyond the 24 months. If you think you are getting a discounted phone for nothing then try cancelling your line! You'll pay an early termination fee which shows you how much you are really paying!
Contracts suck!

 

[puma1552]

You are paying about $20 a month for the phone, even if you go beyond the 24 months. If you think you are getting a discounted phone for nothing then try cancelling your line! You'll pay an early termination fee which shows you how much you are really paying!
Contracts suck!

If this is true, which it may be - then wouldn't I still be worse off buying a new phone outright and keeping this plan? As you said, this plan will not get cheaper after 24 months which I wholeheartedly agree and am certain of. So then if there really is a hidden device portion built in to this plan that will never disappear, then I'd be paying full price for the new phone plus a never ending subsidy chunk even though my device isn't subsidized (and on that note you'd be foolish not to upgrade every 24 months on contract).

 

[Juan007]

One way or another you're paying for it. Pay now or pay later, you're still paying. 2 year shackles are nothing to brag about.

 

[KUguardgrl13]

2 year contracts are not the cheapest option on Verizon. Depending on What plan you have you dont menshion that in the post your plan, the newer plans have a have a "device subsidy" dpending on the plan its anywhere from 15.00 to 25.00 per month towards the device payment on a phone on Verizon device payment. So it makes the phone cheaper then 2 year.

This. My dad just upgraded his 4S to an SE a couple days ago. He went from $40 for his line access off-contract to $15 plus $20ish for the SE device payment. Compare that to my brother's 4S and my 5 that are still $40 each, my mom's 5s at $50 something (not sure how that works, she's had it for about a year and a half), and her $10 iPad access. Plus our talk, text, and 6gb of data for $70. If we all had newer phones on device payment plans, we probably wouldn't be paying upwards of $260 a month (knowing that it could be more anyway, since I think there's an employer discount in there).

 

[Givmeabrek]

If this is true, which it may be - then wouldn't I still be worse off buying a new phone outright and keeping this plan? As you said, this plan will not get cheaper after 24 months which I wholeheartedly agree and am certain of. So then if there really is a hidden device portion built in to this plan that will never disappear, then I'd be paying full price for the new phone plus a never ending subsidy chunk even though my device isn't subsidized (and on that note you'd be foolish not to upgrade every 24 months on contract).

If you bought the phone outright you wouldn't have a contract plan. You would get a discount and a cheaper plan. And you are not shackled to anything, and would never have an early termination fee.

 

[comptr]

I have the Single Line Loyalty plan - $60/mo for 2GB and unlimited talk and text. I don't believe there is any device portion in there (it does not break down further on their site). My total bill with tax and BS fees is $66/month, so I don't think there's any device portion in there, and I plan to keep the same plan.

Ya the Loyalty Plans do not have device payment discount. Try calling 611 on your phone and talk to a Verizon CS and see if they can find you a better plan.
[doublepost=1473017615][/doublepost]

This. My dad just upgraded his 4S to an SE a couple days ago. He went from $40 for his line access off-contract to $15 plus $20ish for the SE device payment. Compare that to my brother's 4S and my 5 that are still $40 each, my mom's 5s at $50 something (not sure how that works, she's had it for about a year and a half), and her $10 iPad access. Plus our talk, text, and 6gb of data for $70. If we all had newer phones on device payment plans, we probably wouldn't be paying upwards of $260 a month (knowing that it could be more anyway, since I think there's an employer discount in there).

Ya we have the 10 GB talk text plan for 80.00 its a slightly older plan so we get 25.00 instead of 20.00 of the line access for having a phone on device payment.

 

[joeblow7777]

If this is true, which it may be - then wouldn't I still be worse off buying a new phone outright and keeping this plan? As you said, this plan will not get cheaper after 24 months which I wholeheartedly agree and am certain of. So then if there really is a hidden device portion built in to this plan that will never disappear, then I'd be paying full price for the new phone plus a never ending subsidy chunk even though my device isn't subsidized (and on that note you'd be foolish not to upgrade every 24 months on contract).

When you buy a subsidized phone under contract part of what you pay each month is paying for the phone. If you buy a phone outright, you'll be able to sign up for plans (that you can leave any time) that will cost less each month.

So whether you buy a phone outright, under a contract, or in an instalment plan, one way or another you end up paying the full price of the phone before you get your next one.

 

[C DM]

I have the Single Line Loyalty plan - $60/mo for 2GB and unlimited talk and text. I don't believe there is any device portion in there (it does not break down further on their site). My total bill with tax and BS fees is $66/month, so I don't think there's any device portion in there, and I plan to keep the same plan.

For you a contract is definitely the way to go as going with anything else will mak you pay more. For those on current plans there is a discount for going with financing or owning a device, so for them contract isn't really better in many instances.
[doublepost=1473019869][/doublepost]

If you bought the phone outright you wouldn't have a contract plan. You would get a discount and a cheaper plan. And you are not shackled to anything, and would never have an early termination fee.

Discounts like that don't apply to older plans.

 

[Peter K.]

If this is true, which it may be - then wouldn't I still be worse off buying a new phone outright and keeping this plan? As you said, this plan will not get cheaper after 24 months which I wholeheartedly agree and am certain of. So then if there really is a hidden device portion built in to this plan that will never disappear, then I'd be paying full price for the new phone plus a never ending subsidy chunk even though my device isn't subsidized (and on that note you'd be foolish not to upgrade every 24 months on contract).

The answer to the first question is YES. The rest of your post seems spot-on, as well, to me. If you intend to keep buying subsidized phones, you should stay on your current plan.

 

[JustMadeThisNameUp]

I've always bought my phones through 2 year subsidized contracts, always getting a phone for $299.

I'm on Verizon, so I can still do this. I'm on a launch day 6, and after September 19th, I can get a new 64GB SE on contract for just $50, or presumably a 128GB 7 for whatever subsidized pricing is offered ($299 unless Apple raises prices, so maybe $350ish?).

Contracts really suck, nobody disputes that. Paying cash to own the phone outright is great, and all the installment plans probably fall somewhere in the middle. But there's one difference between the contract and all other methods - the contract is by far the de facto cheapest option, is it not? Assuming another year of $299, the phone is basically free or close to it after selling/trading your current out of contract subsidized phone (a 6 in this case). Can even profit depending on selling method.

To be honest I don't really want to sign another contract, but is it not true that this is indeed the cheapest way - should those of us who still have the contract option be considered "lucky"? Would you sign a contract if you still had the option?

Contracts (like the ones on AT&T) are a ripoff. Between all the surcharges, fees, and other bogus charges you will end up paying as much for the phone as you would in an Apple Store if not more. When AT&T first started carrying the iPhone when it was a carrier exclusive AT&T was losing money on every phone. Over the years they've learned different ways to make up for that cost. And any time some other competing carrier has come out with a cost saving measure AT&T comes out with a seemingly similar one but they take out the benefit to the consumer under the guise of saving money.

Apple's upgrade program is the best option for someone like me on AT&T (I'm sure the other big carriers are the same). I will end up paying the full amount of the phone eventually but I know what I'm getting into and I get to easily get my new phone without having to go through AT&T and be lied to about countless things.

 

[puma1552]

Ya the Loyalty Plans do not have device payment discount. Try calling 611 on your phone and talk to a Verizon CS and see if they can find you a better plan.
[doublepost=1473017615][/doublepost]

Ya we have the 10 GB talk text plan for 80.00 its a slightly older plan so we get 25.00 instead of 20.00 of the line access for having a phone on device payment.

When you buy a subsidized phone under contract part of what you pay each month is paying for the phone. If you buy a phone outright, you'll be able to sign up for plans (that you can leave any time) that will cost less each month.

So whether you buy a phone outright, under a contract, or in an instalment plan, one way or another you end up paying the full price of the phone before you get your next one.

For you a contract is definitely the way to go as going with anything else will mak you pay more. For those on current plans there is a discount for going with financing or owning a device, so for them contract isn't really better in many instances.
[doublepost=1473019869][/doublepost]
Discounts like that don't apply to older plans.

The answer to the first question is YES. The rest of your post seems spot-on, as well, to me. If you intend to keep buying subsidized phones, you should stay on your current plan.

So I guess at least in my situation on Verizon with the Single Line Loyalty plan, if I keep the plan, I should stick with contracts, but if I buy the phone outright, I should talk to Verizon and see what kind of plans I can get to see if there's something cheaper (though anything cheaper than $66 all in with tax and fees seems unlikely in this day and age)?

 

[Peter K.]

So I guess at least in my situation on Verizon with the Single Line Loyalty plan, if I keep the plan, I should stick with contracts, but if I buy the phone outright, I should talk to Verizon and see what kind of plans I can get to see if there's something cheaper (though anything cheaper than $66 all in with tax and fees seems unlikely in this day and age)?

100% correct.

 

[Mindbender14]

I'm in exactly the same situation. $60 for 2gb and unlimited talk and text really is the best out there. I'm hoping for an incentive to get me to switch to a device payment but as of right now I'll probably just take the subsidized phone.

 

[valinda]

I'm with Verizon as well, and personally I am done with the 2-year contracts. For the iPhone 7 I am actually upgrading to the iPhone Upgrade Program so I can get the newest iPhone every year, so I believe that's cheaper than doing a 2-year contract and I have the freedom to switch carriers as well.

Since the iPhone 4 (when it came to Verizon) I've had 2-year contracts for the iPhone 4, 5, & 6 (I've never had an S iteration) but when you look at it, it IS cheaper to have your phone unlocked. Under my new Verizon data plans, its $20 a month on my bill for unlocked phones whereas a locked, 2-year contract phone is $40 a month on the bill instead.

So I believe buying the phone unlocked will end up saving you money in the long run, even though it doesn't seem like it.

For some reason they have all my phones $20, even the one's on contract. Maybe they have made a mistake on mine, but it's been that way for awhile now.
[doublepost=1473091663][/doublepost]

This. My dad just upgraded his 4S to an SE a couple days ago. He went from $40 for his line access off-contract to $15 plus $20ish for the SE device payment. Compare that to my brother's 4S and my 5 that are still $40 each, my mom's 5s at $50 something (not sure how that works, she's had it for about a year and a half), and her $10 iPad access. Plus our talk, text, and 6gb of data for $70. If we all had newer phones on device payment plans, we probably wouldn't be paying upwards of $260 a month (knowing that it could be more anyway, since I think there's an employer discount in there).

Your brother's 4s, and mom's 5s are still under contract?????

 

[grockk]

I have ATT unlimited and wife has 2gb contract. For us a 4GB shared plan was $500 more over 2 years despite being $20/month cheaper because you have to pay full price for phones even with device discount. Also corporate discounts don't count on the device access fees.

Contracts with built in subsidies were great. You just had to make sure you upgrade when eligible to make most savings. New plans, while more straight forward, are more expensive if you count total cost of ownership.

 

[C DM]

I have ATT unlimited and wife has 2gb contract. For us a 4GB shared plan was $500 more over 2 years despite being $20/month cheaper because you have to pay full price for phones even with device discount. Also corporate discounts don't count on the device access fees.

Contracts with built in subsidies were great. You just had to make sure you upgrade when eligible to make most savings. New plans, while more straight forward, are more expensive if you count total cost of ownership.

For some people new plans can be more expensive, for others they might not be, depending on the particular plan details.

 

[puma1552]

I'm in exactly the same situation. $60 for 2gb and unlimited talk and text really is the best out there. I'm hoping for an incentive to get me to switch to a device payment but as of right now I'll probably just take the subsidized phone.

That's kind of how I'm leaning, as much as I would hate to sign another contract. If I go with a 7, it's free or close to it, and if I go with a $50 SE, then I can pocket a couple hundred bucks.

 

[KUguardgrl13]

For some reason they have all my phones $20, even the one's on contract. Maybe they have made a mistake on mine, but it's been that way for awhile now.
[doublepost=1473091663][/doublepost]

Your brother's 4s, and mom's 5s are still under contract?????

My mom's 5s is. She only got it a year and a half ago and probably signed a new contract. Both my 5 and my brother's 4S are off-contract, but I don't think my dad has applied the discounts for that. You have to contact Verizon and request those.

Suffice to say we're probably overpaying. We're Verizon's favorite kind of customers

 

[valinda]

My mom's 5s is. She only got it a year and a half ago and probably signed a new contract. Both my 5 and my brother's 4S are off-contract, but I don't think my dad has applied the discounts for that. You have to contact Verizon and request those.

Suffice to say we're probably overpaying. We're Verizon's favorite kind of customers

I would have your Dad give them a call. Any phone off contract should be $20. That would be $40 off his bill a month.

 

[KUguardgrl13]

I would have your Dad give them a call. Any phone off contract should be $20. That would be $40 off his bill a month.

Yeah well he'd have to negotiate with CSR's, which he doesn't like to do