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

Discussion in 'iPhone' started by puma1552, Sep 4, 2016.

  1. puma1552 macrumors 601

    Joined:
    Nov 20, 2008
    #1
    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. comptr macrumors 65816

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    Oct 25, 2007
    Location:
    Arizona
    #2
    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.
     
  3. mjwebb macrumors member

    mjwebb

    Joined:
    Aug 28, 2016
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    Arizona
    #3
    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.
     
  4. bufffilm Suspended

    bufffilm

    Joined:
    May 3, 2011
    #4
    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.
     
  5. puma1552, Sep 4, 2016
    Last edited: Sep 4, 2016

    puma1552 thread starter macrumors 601

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    Nov 20, 2008
    #5
    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.
     
  6. Givmeabrek macrumors 68040

    Givmeabrek

    Joined:
    Apr 20, 2009
    Location:
    NY
    #6
    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!
     
  7. puma1552 thread starter macrumors 601

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    Nov 20, 2008
    #7
    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).
     
  8. Juan007 macrumors 6502a

    Juan007

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    Jun 14, 2010
    #8
    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.
     
  9. KUguardgrl13 macrumors 68020

    KUguardgrl13

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    May 16, 2013
    Location:
    Kansas, USA
    #9
    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).
     
  10. Givmeabrek macrumors 68040

    Givmeabrek

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    NY
    #10
    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.
     
  11. comptr macrumors 65816

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    Oct 25, 2007
    Location:
    Arizona
    #11
    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.
    --- Post Merged, Sep 4, 2016 ---
    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.
     
  12. joeblow7777 macrumors 601

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    Sep 7, 2010
    #12
    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.
     
  13. C DM macrumors Westmere

    Joined:
    Oct 17, 2011
    #13
    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.
    --- Post Merged, Sep 4, 2016 ---
    Discounts like that don't apply to older plans.
     
  14. Peter K. macrumors 6502a

    Peter K.

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    Location:
    SoCal
    #14
    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.
     
  15. JustMadeThisNameUp macrumors regular

    Joined:
    Jun 15, 2015
    #15

    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.
     
  16. puma1552 thread starter macrumors 601

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    Nov 20, 2008
    #16
    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)?
     
  17. Peter K. macrumors 6502a

    Peter K.

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    #17
    100% correct.
     
  18. Mindbender14 macrumors regular

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    Aug 25, 2014
    #18
    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.
     
  19. valinda macrumors 6502

    valinda

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    May 16, 2015
    Location:
    Virginia Beach, VA
    #19
    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.
    --- Post Merged, Sep 5, 2016 ---
    Your brother's 4s, and mom's 5s are still under contract?????
     
  20. grockk macrumors 6502

    grockk

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    Mar 16, 2006
    #20
    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.
     
  21. C DM macrumors Westmere

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    Oct 17, 2011
    #21
    For some people new plans can be more expensive, for others they might not be, depending on the particular plan details.
     
  22. puma1552 thread starter macrumors 601

    Joined:
    Nov 20, 2008
    #22
    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.
     
  23. KUguardgrl13 macrumors 68020

    KUguardgrl13

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    May 16, 2013
    Location:
    Kansas, USA
    #23
    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 ;)
     
  24. valinda macrumors 6502

    valinda

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    May 16, 2015
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    #24
    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.
     
  25. KUguardgrl13 macrumors 68020

    KUguardgrl13

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    #25
    Yeah well he'd have to negotiate with CSR's, which he doesn't like to do ;)
     

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