Carrier Verizon Monthly vs. Apple iPhone Upgrade Program

[nanogirl21]

Everyone has a different line access mine is $15 , AppleCare + is included in the 12 month upgrade plan with Apple. I added it to the others to make an apple to apple comparison

I understand trying to do an Apple to Apple comparison. However, the Apple to Apple comparison should be made with what is REQUIRED to buy. You are required to have AppleCare+ when you buy directly from the Apple Store. However, it is optional when you go by carrier. It's also optional to have carrier insurance. I think people are more interested in what they HAVE to spend when looking at cost of joining program A vs program B. Next time maybe present both options?

 

[16Paws]

You are on an older (not the "New Verizon Plan") right now you are getting $25 off because of the payment plan. When I spoke with verizon they told me the if I did not finance the phone through them I would lose that $25, but I could switch to the "New Verizon Plan" which is $5 a line more and that plan receives an "off contract" discount of $20. So the verizon plan itself would be $5 extra a month.

As for the Apple Upgrade Program it is (from a financial POV) mainly a benefit since it is overall cheaper. The reason for this is only if you want Apple Care. Under the VZW payment plan they do not include AppleCare so you must purchase that separately for $129. Under the Apple Upgrade Program (not the other finance option) the AppleCare is included in the finance price so assuming you upgrade in 1yr you only pay for half of the AppleCare. The only main issue with the Apple Upgrade Program is the fact that it is a hard credit inquiry which (for me) is not something I like to do. If you are upgrading with Verizon and have a verizon account that is in good standing it never hits your credit.

 

[brianric]

How did that laundry pod get in your pocket?

I was on my way to the laundromat and only have one load to do, so it's two pods in the pocket. First time ever that a pod broke in my pocket.
[doublepost=1473365476][/doublepost]

Sorry this made me laugh. Why is a laundry pod in your pocket anyway? They should be in a laundry room or in actually being used in the washer. Not in your pocket where your phone is. This (to me) falls under the category of negligence just like those who give their 2 year olds iPhones with a full glass of water.

Sorry if that sound harsh. Didn't mean it to come off that way.

Never had a problem in five years. I live in an apartment, there is no laundry room.
[doublepost=1473365701][/doublepost]

You are on an older (not the "New Verizon Plan") right now you are getting $25 off because of the payment plan. When I spoke with verizon they told me the if I did not finance the phone through them I would lose that $25, but I could switch to the "New Verizon Plan" which is $5 a line more and that plan receives an "off contract" discount of $20. So the verizon plan itself would be $5 extra a month.

As for the Apple Upgrade Program it is (from a financial POV) mainly a benefit since it is overall cheaper. The reason for this is only if you want Apple Care. Under the VZW payment plan they do not include AppleCare so you must purchase that separately for $129. Under the Apple Upgrade Program (not the other finance option) the AppleCare is included in the finance price so assuming you upgrade in 1yr you only pay for half of the AppleCare. The only main issue with the Apple Upgrade Program is the fact that it is a hard credit inquiry which (for me) is not something I like to do. If you are upgrading with Verizon and have a verizon account that is in good standing it never hits your credit.

Same with AUP as long as you have 12 or more payments and less than 24. You turn the phone in and start all over, no hard pull on credit. I was at the Apple Delaware store Tuesday and verified that is in fact the case.

 

[Geckotek]

This person is on a previous plan. You're on the current Verizon Plan. They are on the More Everything Plan (which I'm also on and usually advise people to stick with if possible as it's cheaper overall).

Basically a standard line fee under 2 year contract on the old More Everything Plan is $40. If you are instead paying for your phone monthly rather than on contract you receive a "discount," aka a cut to your line access fee, which is determined based upon your monthly data. If you have below 10gb on your plan it would show on the bill as $40-$15, essentially making your line cost $25. If you have 10gb or more (like he has) it will show as $40-$25, making your monthly line fee $15.

Under the current new Verizon Plans all line fees for smartphones are $20 unless retaining a 2 year contract as a pre-existing customer. At that point you'd be paying a flat $40.

I was a sales representative in a mobile department dealt primarily with Verizon just for point of reference.

Thank you, this is the kind of explanation I was looking for. I was hoping I'd find a way to get to a $15 access fee...but seems that's not possible.

For reference, I'm on THE VERIZON PLAN XX LARGE 18GB

 

[16Paws]

Same with AUP as long as you have 12 or more payments and less than 24. You turn the phone in and start all over, no hard pull on credit. I was at the Apple Delaware store Tuesday and verified that is in fact the case.

I think you are missing what I am saying about the AUP... with the AUP you get the benefit of only having paid for half of AppleCare where as if you get AppleCare in addition to the VZW plan you pay for the full 129 for AppleCare.

As for the credit pull... i am not trying to argue but this is language directly from the Apple Website:

1. The Apple iPhone Upgrade Program is available to qualified customers with a credit check and eligible U.S. credit card. Requires a 24-month installment loan with a 0% APR from Citizens Bank, N.A. (subject to any interest, fees, or other costs payable to the issuer of the credit card), purchase of AppleCare+, and iPhone activation with one of these national carriers: AT&T, Sprint, or Verizon. Activation on T-Mobile available in Apple Retail Stores. Sales tax and any applicable fees due at time of purchase. Full terms apply.

 

[yanks12025]

Question about the Verizon monthly plan. Like right now for the 7 plus would be about $36 a month for 24 months. If I upgrade next year and want the iPhone 8 if it comes out. What would I then have to pay? Does it stay the 36???

 

[Geckotek]

Question about the Verizon monthly plan. Like right now for the 7 plus would be about $36 a month for 24 months. If I upgrade next year and want the iPhone 8 if it comes out. What would I then have to pay? Does it stay the 36???

Depends on the price of the device you chose. You basically start a new 24 mo financing on a new loan amount.

Ok, I've updated my spreadsheet to reflect selling my iPhones after 24 months on the IUP. It's clear now that there is a cost associated (about $325 in my case) with giving up your phone every 12 months for a more frequent upgrade. The cheapest options seem to be keeping your iPhone for 2 years and selling it (assuming you can get a decent price).

In this example I'm not including selling my MIL's iPhone SE. In fact, we're debating just giving her one of our old iPhones.

 

[nanogirl21]

Question about the Verizon monthly plan. Like right now for the 7 plus would be about $36 a month for 24 months. If I upgrade next year and want the iPhone 8 if it comes out. What would I then have to pay? Does it stay the 36???

No. You trade in your phone and pay whatever the cost of iPhone 8 is divided by 24.

 

[16Paws]

Question about the Verizon monthly plan. Like right now for the 7 plus would be about $36 a month for 24 months. If I upgrade next year and want the iPhone 8 if it comes out. What would I then have to pay? Does it stay the 36???

All depends on the price of the phone. It is basically a 0% interest loan. So you take the cost of the phone divided by 24 (the term) to get the monthly. If next year the phone is 2x the price (not saying it would be, but for example) then the monthly cost is 2x.

 

[C DM]

You are on an older (not the "New Verizon Plan") right now you are getting $25 off because of the payment plan. When I spoke with verizon they told me the if I did not finance the phone through them I would lose that $25, but I could switch to the "New Verizon Plan" which is $5 a line more and that plan receives an "off contract" discount of $20. So the verizon plan itself would be $5 extra a month.

Yeah, they used to offer the same discount for owned equipment on those plans (basically for devices you already paid off or aren't on contact anymore) and then they stopped offering it, which is rather shady of them to charge the full $40 for equipment that's been paid off already. Now the only way to pay less than the full line price is to switch to an even newer plan but now for $5 more per month.

 

[16Paws]

Yeah, they used to offer the same discount for owned equipment on those plans (basically for devices you already paid off or aren't on contact anymore) and then they stopped offering it, which is rather shady of them to charge the full $40 for equipment that's been paid off already. Now the only way to pay less than the full line price is to switch to an even newer plan but now for $5 more per month.

Agreed it is shady... i wouldn't care if the new plan had the same features and was priced similarly, but to increase the price to not get ripped off? I don't think so. If I had decent service from someone other than VZW where I live I would consider a switch.

 

[Geckotek]

Ok, new data point here. I decided to add a column where I finance the iPhone 7 through Verizon and upgrade after 1 year. Seems to cost quite a bit more. Someone please check my math? (I went ahead and showed the device paid in full by keeping the monthly payments to total $1800).

 

[C DM]

Agreed it is shady... i wouldn't care if the new plan had the same features and was priced similarly, but to increase the price to not get ripped off? I don't think so. If I had decent service from someone other than VZW where I live I would consider a switch.

It's just they could have simply left things as they were on the previous plans (offering the discount to lines with owned equipment as well) and simply offer the new plan to new customers or those who might want to switch to it.

 

[Arnezie]

I understand trying to do an Apple to Apple comparison. However, the Apple to Apple comparison should be made with what is REQUIRED to buy. You are required to have AppleCare+ when you buy directly from the Apple Store. However, it is optional when you go by carrier. It's also optional to have carrier insurance. I think people are more interested in what they HAVE to spend when looking at cost of joining program A vs program B. Next time maybe present both options?

This was MY comparison and I would add AppleCare + and that would be an apple to Apple comparison since everything would be the same (kinda the point of a comparison)

 

[16Paws]

Ok, new data point here. I decided to add a column where I finance the iPhone 7 through Verizon and upgrade after 1 year. Seems to cost quite a bit more. Someone please check my math? (I went ahead and showed the device paid in full by keeping the monthly payments to total $1800).

I am not following why the device cost is so high with the VZW payment plan. Remember that when you upgrade in a year you return the old phone so you have only paid for 50% of it.

 

[hoopaholic400]

Ok I am pleasantly confused. I am on a family plan and wanting to upgrade my line to iPhone 7.
I am currently using a iPhone 6S, with monthly device payment plan. I have paid 50% of my device off.
I am also receiving the $25 monthly discount for financing through verizon.
My question is: where should I upgrade to ensure I keep the $25/month discount? Do I have to use the verizon website? or can I upgrade via the apple store app? I also want to be able to pick up my phone ON THE 16th (not shipped to me).

 

[Geckotek]

I am not following why the device cost is so high with the VZW payment plan. Remember that when you upgrade in a year you return the old phone so you have only paid for 50% of it.

Thanks, this is the feedback I'm looking for. So I don't have to pay off the remainder, but this also means turning in the device on not being able to CL it...correct? Just like Apple's IUP?

 

[16Paws]

Ok I am pleasantly confused. I am on a family plan and wanting to upgrade my line to iPhone 7.
I am currently using a iPhone 6S, with monthly device payment plan. I have paid 50% of my device off.
I am also receiving the $25 monthly discount for financing through verizon.
My question is: where should I upgrade to ensure I keep the $25/month discount? Do I have to use the verizon website? or can I upgrade via the apple store app? I also want to be able to pick up my phone ON THE 16th (not shipped to me).

I can answer a couple of questions you asked:

1. As long as you upgrade and continue device payments (using the VZW upgrade program) your $25/month discount will be intact from what VZW told me.

2. VZW website, apple does not do the VZW device payment plan on their site only the 2yr contract for verizon. They do device plan plans with ATT.

3. This is the one I don't know. I don't like having these things shipped to me either, I always have them shipped but held at the UPS Distribution center which so far has been a great way of handling it and is decent middle ground option.
[doublepost=1473370274][/doublepost]

Thanks, this is the feedback I'm looking for. So I don't have to pay off the remainder, but this also means turning in the device on not being able to CL it...correct? Just like Apple's IUP?

You have two options:

1. Return the device and upgrade which is pretty straight forward (like the AUP).
2. You can pay off the device and sell it on CL. It all depends on what the market will yield for the device in 1 yr, but you have the option at that point and can do which ever will make more sense then.

 

[comptr]

So I have 3 lines on Verizon and I am on the the older Verizon plan where I get 25.00 off my line access fee for having the phone on Device Payment. 2 of my lines are on the old Verizon Edge and my line was on 2 year but the contract ended yesterday, so when I pre-order the iPhone 7+ tonight and I choose Device Payment, what happens after 23 months can I pay off the last month off early and how do upgrades work with device payments do I need to wait till the last payment is paid off if I want to get all of the 25.00 off per month for the 24 months ?

 

[C DM]

So I have 3 lines on Verizon and I am on the the older Verizon plan where I get 25.00 off my line access fee for having the phone on Device Payment. 2 of my lines are on the old Verizon Edge and my line was on 2 year but the contract ended yesterday, so when I pre-order the iPhone 7+ tonight and I choose Device Payment, what happens after 23 months can I pay off the last month off early and how do upgrades work with device payments do I need to wait till the last payment is paid off if I want to get all of the 25.00 off per month for the 24 months ?

You an pay off anytime, but if you don't upgrade at that point then, yeah, you are kind of getting screwed by having to pay a higher line access fee because you no longer have the discount for owned equipment. It's almost like contracts in that sense where they are urging you to stay for the 2 years by giving you that discount and not giving it to you when you are done unless you upgrade again. That is unless you change to the current plans where it should be just $20 per line whether or not you are on a payment plan (only $40 if you are on contract I believe).

 

[yanks12025]

So I'm grand fathered in with Verizon for unlimited data. I'm thinking about getting the new iPhone 7 plus. So is it better to go with the Apple iPhone upgrade program or pay the monthly Verizon plan. I think thru apple its $42 with apple care but Verizon is like $33-35. Is there any other costs besides my data plan that I need to know about that would also be added. thanks

 

[comptr]

You an pay off anytime, but if you don't upgrade at that point then, yeah, you are kind of getting screwed by having to pay a higher line access fee because you no longer have the discount for owned equipment. It's almost like contracts in that sense where they are urging you to stay for the 2 years by giving you that discount and not giving it to you when you are done unless you upgrade again. That is unless you change to the current plans where it should be just $20 per line whether or not you are on a payment plan (only $40 if you are on contract I believe).

O ok well I am staying on this plan since when ever a line is done paying off their phone I will upgrade that line and sell off their phones. So it makes sense I will use the device payments then and I always upgrade every one of my lines once their phones are paid off so I should not see a lapse in the 25.00 off at all.
[doublepost=1473374602][/doublepost]Verizon is Waving the Device Upgrade Fee if you buy the iPhone 7/7+ online or over the phone from Verizon if you were on 2 year and your contract ended and choose Device Payment this time. It will save you the ($20.00) upgrade fee.

 

[astnkllm]

I did a personal analysis and this is what I found. Overall, for me, it will be cheaper to go through Apple's Upgrade Program than Verizon's. It isn't much cheaper, but any savings is good, plus with the lower deductible of AppleCare+ compared to Verizon, going through Apple is the best choice.

With Verizon’s Plan (32 gb)


Monthly charges - $15

Equipment - $27.08

Surcharges - $1.95

Government - $2.36

Activation - $2

Insurance - $11

—————————————————
$59.39



With Apple’s Plan 32gb—


Monthly charges - $15 (according to verizon - out of contract) 40 - 25

Equipment - $0

Surcharges - $1.95

Government - $2.36

Apple: $37.41

—————————————————
$56.72

 

[yanks12025]

I did a personal analysis and this is what I found. Overall, for me, it will be cheaper to go through Apple's Upgrade Program than Verizon's. It isn't much cheaper, but any savings is good, plus with the lower deductible of AppleCare+ compared to Verizon, going through Apple is the best choice.

With Verizon’s Plan (32 gb)


Monthly charges - $15

Equipment - $27.08

Surcharges - $1.95

Government - $2.36

Activation - $2

Insurance - $11

—————————————————
$59.39



With Apple’s Plan 32gb—


Monthly charges - $15 (according to verizon - out of contract) 40 - 25

Equipment - $0

Surcharges - $1.95

Government - $2.36

Apple: $37.41

—————————————————
$56.72

From Verizon are you charged the $27 equipment fee because you're doing the monthly thing or is that part of a plan?? Because i don't have that charge(maybe cause ei bought my last iPhone outright). So if I sign up for the Verizon plan, will I have to pay a equipment fee also?????

 

[C DM]

From Verizon are you charged the $27 equipment fee because you're doing the monthly thing or is that part of a plan?? Because i don't have that charge(maybe cause ei bought my last iPhone outright). So if I sign up for the Verizon plan, will I have to pay a equipment fee also?????

If you are financing the phone then you'd have an equipment fee (basically the finance/payment plan charge).