Carrier Verizon: Cash or Subsidy for new iPhone 6 on Family Plan

Discussion in 'iPhone' started by steveaus, Sep 29, 2014.

  1. steveaus macrumors newbie

    Joined:
    Jul 15, 2009
    #1
    I've tried several online calculators, browsed through 12 pages of topics on this forum and read a half dozen reviews and it seems that many folks would have a similar question I can't find the answer to....


    I want to swap (sell/trade) one 32GB iPhone 5s for a 64GB 6 and I want to add a new line with a new 64GB iPhone 6. I have an 8 GB / month plan currently.

    I am happy to pay cash up front for the full retail value, buy a subsidized phone or the much maligned Edge - whichever makes more financial sense.

    I'm happy with Verizon and expect to stay with them for two years or more. I expect to keep these phones for up to 2 years.

    Currently I have three iPhone 5S phones that are 9 months old (15 months remaining on contract) - none available for a subsidized upgrade anytime soon.
     
  2. dcharleyultra macrumors 6502

    Joined:
    Sep 28, 2013
  3. steveaus thread starter macrumors newbie

    Joined:
    Jul 15, 2009
  4. rui no onna macrumors 601

    rui no onna

    Joined:
    Oct 25, 2013
    #4
    More Everything 8GB 2-year
    upfront: $300
    line fee: $40 * 24 mos = $960
    TOTAL: $1,260

    More Everything 10GB Edge
    8GB -> 10GB upgrade: $10 * 24 mos = $240
    upfront: $0
    line fee: $15 * 24 mos = $360
    Edge: $37.50 * 20 mos = $750
    TOTAL: $1,350

    More Everything 10GB buy outright
    8GB -> 10GB upgrade: $10 * 24 mos = $240
    upfront: $750
    line fee: $15 * 24 mos = $360
    TOTAL: $1,350

    Stick to your current plan and just sign a 2-year contract for the new line. When the 3 lines are all out of contract and if Verizon is still running the Edge/BYOD promo, that's when it makes sense to switch to the 10GB Plan + Edge/buy outright.
     
  5. Delmar macrumors 6502

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    May 10, 2012
    Location:
    Texas
  6. steveaus thread starter macrumors newbie

    Joined:
    Jul 15, 2009
    #6
    Super helpful. My understanding is that tax and activation fees are the same regardless of how you buy so would push the price up the same across all options.

    Given these numbers, I'm curious why it would make sense to buy outright or go with Edge when the three contracts are up. Buying outright costs another $90 more than with the contract subsidy (though perhaps for only $90 it's worth it to be able to end my Verizon relationship at anytime). Worse yet, with Edge I wouldn't own the devices so wouldn't recoup the resale value.

     
  7. rui no onna macrumors 601

    rui no onna

    Joined:
    Oct 25, 2013
    #7
    Actually, activation/upgrade fees only applies to 2-year contract. There's no upgrade fee for BYOD/Edge. There's currently a moratorium on internet taxation so with contract, you get taxed for the $40 line fee and on BYOD/Edge, you get taxed on the $15 line fee. Sales tax varies on location. Some states only charge sales tax on the upfront cost. In California, I get charged full sales tax on MSRP so sales tax is the same whether I go subsidized, Edge or buy outright.

    The thing that makes Edge/BYOD slightly more expensive in the above scenario is the switch to 10GB. For Edge/BYOD to actually make sense, you need to get the $25 per line discount and that requires a minimum 10GB plan. With 3 lines out of contract, you get $75/mo discount (3 * $25) and the increase for the 10GB plan is still just $10/mo so you still come out ahead with Edge/BYOD even after factoring device costs. Also, on Edge, you own the device after 20 months and can do whatever you want with it. Edge is just a 0% financing offer. The trade-in part is entirely optional and it's only if you want to do an early upgrade. Even then, you have the option of selling the device yourself and just paying off the remaining balance.

    As a comparison when your 3 lines are out of contract:

    More Everything 8GB 2-year
    upfront: $300 * 3 = $900
    line fee: $40 * 3 * 24 mos = $2,880
    TOTAL: $3,780

    More Everything 10GB Edge
    8GB -> 10GB upgrade: $10 * 24 mos = $240
    upfront: $0
    line fee: $15 * 3 * 24 mos = $1,080
    Edge: $37.50 * 3 * 20 mos = $2,250
    TOTAL: $3,570

    More Everything 10GB buy outright
    8GB -> 10GB upgrade: $10 * 24 mos = $240
    upfront: $750 * 3 = $2,250
    line fee: $15 * 24 mos = $1,080
    TOTAL: $3,570
     
  8. steveaus thread starter macrumors newbie

    Joined:
    Jul 15, 2009
    #8
    So it seems that with the new line that I want to add, I should purchase via Edge? The others I can roll over into Edge when their contracts expire.
     
  9. dcharleyultra macrumors 6502

    Joined:
    Sep 28, 2013
    #9
    I think only unactivated phones can be added to Edge.
     

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