I'm trying to figure out what is the best plan to be on for someone who upgrades every yr (I alternate between my line and a 2nd line). I was speaking with some people on the Verizon Wireless forums, and one user thinks the Verizon Plan is cheaper. It seems we are doing our math differently, so I would like some more opinions. I'm going to paste some of what we've been talking about and you guys tell me what you think.
2yr contract:
$40 line access
$53.90 for 6GB data(w 1GB promo data)
$10 for insurance
$499 for new iPhone
$103.90 a month and $3033.60 over 2 yrs (including $499 for the phone and $40 activation fee)
After 1 year - sell iPhone for $499, buy new iPhone for $499, another $40 upgrade fee)
24 month cost (2 years - 2 phones)
$3033.60 + $40=3073.60
We agree on the 2yr pricing.
Verizon Plan:
$20 line access
$46.20 for 6GB data
$10 for insurance
If i go this route I plan to put $421 down on a $949 phone ($22/mo)
$98.20 a month and $2777.80 over 2 yrs
After 1 year - sell iPhone for $499 - buy new iPhone on payment plan $421 down ($949 phone again)
24 month cost (2 years - 2 phones)
Residual on 1st phone to be paid $264
2777.80 -$499 + $421 + $264 = $2963.80
This Verizon Plan calculation above is my initial calculation based on keeping the phone for 2 yrs and then he went in and edited it to calculate 2 phones over 2 yrs.
My math is different. I calculate that at the end of the first yr I would have paid $1863.60. This is the cost of the phone plus the service. So at the end of the 2nd yr as long as iPhone prices don't change, it would be another $1863.60. So for 2 yrs thats $3727.20. Now at the end of the first yr, I sell the first phone for lets say $499 and then put that profit down on the 2nd phone. Since that's not money out my pocket, I minus that from the $3727.20 and I get $3228.20
I know there are some differences between our 2 calculations based on how much is being put down on the phone, but that shouldn't matter because you end up paying the same in the end since either way since you're paying $949 for the phone. So can someone tell me if I'm wrong. And if I am, please break it down for me so I will understand.
2yr contract:
$40 line access
$53.90 for 6GB data(w 1GB promo data)
$10 for insurance
$499 for new iPhone
$103.90 a month and $3033.60 over 2 yrs (including $499 for the phone and $40 activation fee)
After 1 year - sell iPhone for $499, buy new iPhone for $499, another $40 upgrade fee)
24 month cost (2 years - 2 phones)
$3033.60 + $40=3073.60
We agree on the 2yr pricing.
Verizon Plan:
$20 line access
$46.20 for 6GB data
$10 for insurance
If i go this route I plan to put $421 down on a $949 phone ($22/mo)
$98.20 a month and $2777.80 over 2 yrs
After 1 year - sell iPhone for $499 - buy new iPhone on payment plan $421 down ($949 phone again)
24 month cost (2 years - 2 phones)
Residual on 1st phone to be paid $264
2777.80 -$499 + $421 + $264 = $2963.80
This Verizon Plan calculation above is my initial calculation based on keeping the phone for 2 yrs and then he went in and edited it to calculate 2 phones over 2 yrs.
My math is different. I calculate that at the end of the first yr I would have paid $1863.60. This is the cost of the phone plus the service. So at the end of the 2nd yr as long as iPhone prices don't change, it would be another $1863.60. So for 2 yrs thats $3727.20. Now at the end of the first yr, I sell the first phone for lets say $499 and then put that profit down on the 2nd phone. Since that's not money out my pocket, I minus that from the $3727.20 and I get $3228.20
I know there are some differences between our 2 calculations based on how much is being put down on the phone, but that shouldn't matter because you end up paying the same in the end since either way since you're paying $949 for the phone. So can someone tell me if I'm wrong. And if I am, please break it down for me so I will understand.