What is the downside to ATT Next

robjulo

macrumors 65816
Original poster
Jul 16, 2010
1,240
1,922
I typically upgrade every year and pay full price. Is there any financial downside to doing the Next 12? It seems like it's an interest free payment plan.
 

Cabby

macrumors regular
Jun 28, 2010
134
0
There isn't one other than you have to turn in the phone you've been making payments on to get the new phone. It's kind of like leasing a car without interest.
 

RyanG

macrumors 6502
Sep 18, 2007
497
31
There isn't one other than you have to turn in the phone you've been making payments on to get the new phone. It's kind of like leasing a car without interest.
Only if you don't make all the payments. You're paying off the phone over your 2 year contract; It's no different with Next.

You can turn in your phone after 12 months (or 18 months if on AT&T Next 18) and receive a trade-in credit towards a new phone. Alternatively, you can continue making payments until it's paid off and it's all yours.
 

nyfliiboy

macrumors regular
Jun 15, 2010
216
108
Downside for me is paying the added fee for "leasing" the phone versus paying a subsidized price. My bill would be cheaper if I sign a 2 year contract because I wouldn't have the added $30 bucks every month.
 

Deguello

macrumors 6502a
Jun 29, 2008
912
480
Texas
Downside for me is paying the added fee for "leasing" the phone versus paying a subsidized price. My bill would be cheaper if I sign a 2 year contract because I wouldn't have the added $30 bucks every month.
What added fee do you mean?

Also, you don't have to turn in the phone if you pay if off.
 

maflynn

Moderator
Staff member
May 3, 2009
63,864
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Boston
The downsides?

I think leasing the phone and having to trade it in to upgrade means you're probably paying more then if you bought outright and sold it.
 

WannaApple?

macrumors 6502a
Jun 9, 2008
617
68
I'm confused over NEXT, maybe someone can clue me in.

If I'm going to essentially pay $650 for a phone, why would I pay it to AT&T to keep their service over 18 months when I can just buy a in-contract phone for $199? If I decided to pay $650 for a phone, it would be unlocked so I could use it on another carrier.

The only advantage I'm seeing so far is the ability to upgrade early, but I only upgrade once every 2 years anyway. Or maybe for those that can't afford to put out the money up front, but it just doesn't seem like a wise financial decision to pay another $450 just so you can have longer to pay for it.

Is there something I'm missing here?
 

Deguello

macrumors 6502a
Jun 29, 2008
912
480
Texas
I'm confused over NEXT, maybe someone can clue me in.

If I'm going to essentially pay $650 for a phone, why would I pay it to AT&T to keep their service over 18 months when I can just buy a in-contract phone for $199?
Because if you buy for $199 you'll be paying more for monthly service so that AT&T gets its money from you.
 

nyfliiboy

macrumors regular
Jun 15, 2010
216
108
What added fee do you mean?

Also, you don't have to turn in the phone if you pay if off.
I just mean the monthly payment for the phone versus just paying 2-300 upfront for a subsidized phone. Like for example I bought the Galaxy S5 in April and right now if I want to get the iPhone 6 I have to either pay 240 plus return my galaxy or pay 560 total and keep the phone. I will most likely sell my S5 for $400 and add the rest to keep my out of pocket price down.
 

bmms8

macrumors 68020
Dec 19, 2007
2,481
91
Because if you buy for $199 you'll be paying more for monthly service so that AT&T gets its money from you.
+1. Keep in mind that $40 upgrade fee as well.

Anyone in their right mind should not "lease" the phone. Pay it off before upgrading next year and sell the phone personally.
 

Dreday24

macrumors regular
Apr 30, 2012
110
4
Downside for me is paying the added fee for "leasing" the phone versus paying a subsidized price. My bill would be cheaper if I sign a 2 year contract because I wouldn't have the added $30 bucks every month.
if you sign a contract you pay a higher line fee
 

maflynn

Moderator
Staff member
May 3, 2009
63,864
30,392
Boston
+1. Keep in mind that $40 upgrade fee as well.

Anyone in their right mind should not "lease" the phone. Pay it off before upgrading next year and sell the phone personally.
Convenience, ATT (as well as the other carriers) are making it easy and I think a lot of people don't want to go through the hassle of selling the phone
 

Deguello

macrumors 6502a
Jun 29, 2008
912
480
Texas
I just mean the monthly payment for the phone versus just paying 2-300 upfront for a subsidized phone. Like for example I bought the Galaxy S5 in April and right now if I want to get the iPhone 6 I have to either pay 240 plus return my galaxy or pay 560 total and keep the phone. I will most likely sell my S5 for $400 and add the rest to keep my out of pocket price down.
You're still going to have an ETF if you buy on contract in April and want to buy again in September.
 

bmms8

macrumors 68020
Dec 19, 2007
2,481
91
Convenience, ATT (as well as the other carriers) are making it easy and I think a lot of people don't want to go through the hassle of selling the phone
Thats true. ATT is banking on the average consumer I'm sure. On MR i tend to think the average poster is a bit more tech savvy :)

I would buy Next but i have gift cards so ill buy the phone outright instead.
 

ricktat

macrumors 68000
Feb 18, 2013
1,557
1,194
I paid $749 outright for a 32GB 5S.

If I was on NEXT 12 then I would owe $300 if I wanted to continue or keep it.

Trade in value is between $270-$325 on sites now.

Sure selling on Craigslist or Ebay would be higher than that but most will not want to have the hassle.

So it seems like a wash.

NEXT may not be for those on old unlimited plans and can cost more for people with 1 or 2 lines vs subsidy. But if you do the subsidy and want to trade every year... NEXT will still save you money.
 

swarmster

macrumors 6502a
Jun 1, 2004
624
89
The downside is you don't get a subsidy, and the plan is only discounted by $15 (if <10GB). An iPhone subsidy is $450. It would take close to 3 years to make up the difference on Next.
 

Jman13

macrumors 68000
Aug 7, 2011
1,509
150
Columbus, OH
I did the math based on what my wife and I do every year (buy new phone on one line, I get the new one, she gets my old one, rinse and repeat). I'm doing Next for this phone and subsequent. Monthly, my cost will be roughly the same, and yearly, my cost will be roughly the same (I'll owe about $300 left on the payments at 12 months, of which I'll sell the old phone and pay off the previous contract so we're only financing one phone at a time).

The difference for me? This year, I get the iPhone 6 for 'free' upfront instead of spending $300, and we'll just get to pocket the $200 from my wife's iPhone 5 sale. So for me, it's a wash after this, but a $300 benefit immediately. Nice!
 

maflynn

Moderator
Staff member
May 3, 2009
63,864
30,392
Boston
Thats true. ATT is banking on the average consumer I'm sure. On MR i tend to think the average poster is a bit more tech savvy :)

I would buy Next but i have gift cards so ill buy the phone outright instead.
I sold a phone on swappa last July, and I'm still dealing with the buyer, while I recommend that service, I got a buyer who was a little more high maintenance. Since I had to tread lightly due to Paypals 45 day window to dispute a sales, I bent over backwards.

I think in a sense that's what a lot people are afraid, selling it, then dealing with disputes.
 

scoop2mylue

macrumors 6502a
Sep 8, 2010
715
43
Indiana
add a line to your account get the 2yr pricing for whatever phone you want cancel that new line pay the early termination fee of $325 and you will still come out cheaper than doing the Next upgrade
 

Small White Car

macrumors G4
Aug 29, 2006
10,888
1,125
Washington DC
Depends on your situation.

For me, moving my family to NEXT will save me about $350 per year.

And yes, I'll still own the phones at the end of 2 years, exactly like now.

Your mileage may vary, don't make your decisions based on anyone else's situation. Work it out using your own situation.
 

WannaApple?

macrumors 6502a
Jun 9, 2008
617
68
Because if you buy for $199 you'll be paying more for monthly service so that AT&T gets its money from you.
Thanks! I wasn't aware the plans were cheaper, but now that I look at it, I can see a savings of $38 a month fro my family plan if I go with NEXT!

A follow-up question then if anyone can answer. The monthly costs for the NEXT phones on Apple are for the 16GB only. Is there anywhere online, or does anyone know what kind of monthly cost we would be looking at for a 64GB?
 

sixxmum

macrumors 6502a
Aug 15, 2010
601
56
The downside is you don't get a subsidy, and the plan is only discounted by $15 (if <10GB). An iPhone subsidy is $450. It would take close to 3 years to make up the difference on Next.
Not quite, just because on the subsidy plan you are also paying an upgrade fee, so the difference is more like $400. So, at just over 2 years, it's the same.

But, I agree that if your plan is under 10G and you will generally keep your phone 2 years, it may make more sense to go with the subsidy.

For people who have a shared plan over 10G, it's the other direction. There isn't a huge savings, but there is a savings of Next over the subsidy.