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What's so bad about the NEXT plan?
- Thread starter drober30
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From what I understand is that you only trade the phone in if you want to get a new phone and have not paid off the balance yet.
Why even bother paying the phone off then?
If the amount you pay off is equal to what you sell the device for you end up even so there truly is no point. Just trade in the device and get your new one.
However, if remaining balance you pay off on the device is less than what you sell it for then at least you are making a few dollars.
Because if you don't pay the phone off then you're required to trade it in and continue paying the next phones monthly payments. Whereas if you pay it off, you can sell for $300 cash, and use it towards the new phone.
What you're proposing is a wash if you owe $300 and could only sell the phone out right somewhere else for $300. Its pointless. Just trade it in.
If you're on the Next 12/18 plan you don't keep paying after 12 months. The trade-in wipes out the balance.
I don't understand why so many people have trouble understanding. It's absolutely not pointless. If you don't pay the balance off, you won't receive the $300 cash that you would if you sold it elsewhere. All you will receive is the ABILITY to upgrade to another 20 month installment plan. Understand?
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Heres an example. I'm going to buy a 64GB iPhone 6 on AT&T Next this week. After having paid $37.50 for 12 months ($450), next September will come and I'll owe $300 to AT&T to pay off the balance of that iPhone 6.... to which then the phone will be owned by me and I am under no obligation to trade anything in. Then I can sell it, and use the CASH towards my next purchase. And if that purchase happens to be with AT&T Next again, then I can just pay off some of the balance with it. Because you can pay early.
I keep two extra lines for 9.99 a piece (one of which I use as my house phone..the other doesn't even have a phone associated with it). I alternate upgrading on each line every year... I kept my unlimited data on my main two lines... I upgrade every year..sell the old phones on ebay for ~$450 each.. pays for the new phones and makes up some of the cost of carrying the two extra lines
You're required to pay off the balance in full. You can't make additional partial payments besides the monthly payment.
It's not bad. You finance the phone for however # of months and when you pay it off you own the phone. It's completely different from verizon. Verizon's edge is the rip off. Verizon's edge you are renting the phone and when you upgrade you trade it in but it has to be in perfect working order.
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That is wrong. After 30 days you can completely pay off the remaining balance.
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Because when you pay off the phone you own it. It belongs to you. You can do whatever you want with it.
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That is wrong. After 30 days you can completely pay off the remaining balance.
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Because when you pay off the phone you own it. It belongs to you. You can do whatever you want with it.
Holy smokes...
Next divides the retail price of a phone into equal monthly installments at the end of which you can either a) trade in the device for a new device and new lease or b) pay the remainder of the balance and keep the device.
The originator stated that he would pay the remainder of the balance ~$300 and then sell the device for ~$300. For practical purposes coming out even then getting a new device. This is pointless! If you are only going break even simply trade the device in. It is the same thing. However as I mentioned before if you can sell the device for more than the remainder of the balance and make a few bucks good for you.
The entire pay off the balance and sell the device vs simply trading it in is only valid if you can sell the device for more than whatever that balance is.
That's what I said. Besides a regular monthly payment, you can only pay the phone off in full.
I'm in the same boat. Does anyone know the answer to this?
I went as far on apple.com to buy a 5s and select the shortest NEXT plan and it said that my plan was confirmed with NEXT and I was keeping my unlimited data for $39.99. I've heard other things so I'm curious of the answer to the quoted question.
Perhaps I don't understand the way it works, as I haven't read into it much, but I wouldn't want an additional $30-50 added to my already overpriced bill. I'd rather pay up front, sign another 2-year contract, and get it over with.
Then again, I have three lines on my family plan that I rotate for upgrades every year. The other two phones are basic phones that family members use.
Then again, I have three lines on my family plan that I rotate for upgrades every year. The other two phones are basic phones that family members use.
Depends on your plan. Some will give a monthly discount doe being on Next while not for being on contract, so by being on contract and paying more on those lines for the duration of the contract you are then paying more over the life of the contract.
Geez...this is a complete failure of elementary school math. You don't suddenly have an extra $300 if you buy out the term for $300 and then sell it for $300. You have a break even cash position. The only benefit to doing what you're proposing is if you don't want to buy another phone through AT&T or you can sell the device for more than the remainder of what you owe. If you're buying another phone, it is almost entirely pointless. You do not suddenly have an extra $300 through sale of the device, because you spent that $300 buying out the remainder of said device. This is the exact effect as if you had traded the device, because you don't owe $300 if you trade it.
If you trade the device after 12 months, you've paid:
$450
If you buy out the device after 12 months and then sell it for the balance you paid to buy it out, you've paid:
$450 + $300 - $300 = $450
Again, the only thing your idea does generally is sever your obligation to AT&T if you choose not to buy another device from them.
Furthermore, paying off the balance early on a 0% interest financing agreement is pretty dumb (unless you're trying to leave AT&T). You could technically make money by investing that $300 in something interest-bearing rather than giving it to AT&T before it's due.
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Dude. Really? People don't understand because you're not making any sense.
You either have the $300 from selling the phone or you have the $300 you didn't have to spend to pay off the balance. Like I said, it's a wash.
It really doesn't I've researched both of them. The edge you have to return the phone. You never actually own it. On top of that you still pay for the subsidy of the phone. That's why AT&T is cheaper on next than verizons edge.
Clearly you either haven't actually seen anything about the Edge program or deeply misunderstood it (or saw something that is completely not it and treated it like it somehow was) as it's basically Verizon's version of AT&T's Next and works in the same fashion.
I'll probably go the NEXT route on Friday. 4GB of data will be sufficient, but I want to be sure I'll still be able to use my iPhone as a mobile hotspot. I can't find anything on AT&T's site about tethering with a NEXT plan. I currently have the 5GB DataPro with tethering/mobile hotspot. Will I be able to keep that hotspot functionality?
Thanks.
Thanks.
Why would you pay the balance of $300 to sell it for $300? Why not just trade it in after 12 months, and avoid the $300 balance?
EDIT: Oops, I didn't read the rest of the thread, where everyone else questioned this ridiculous logic. "I want to pay $300, so I can sell it and get $300 cash." How about use that $300 you were going to use to pay off the balance, and take $300 cash out of the ATM? It's the same thing, but less hassle.