Why are people still doing contract upgrades with AT&T?

[neteng101]

Its not all that straightforward - even with a lower plan, if you're still on a 2 year contract, then switching to NEXT, depending on when you get your 2 year contract device, gets that device cleared so you're getting out of the old contract without any EFT plus you get to keep/resell the old device.

The old unlimited data are nice but you can't get mobile hotspot on it, which can be quite handy. Again all depends on one's own needs.

NEXT is subsidized on mobile share, not as much as a contract device, so either way, one isn't really going to be paying full price.

But don't believe the full AT&T marketing math, NEXT is definitely not always cheaper as they'd try to make you believe.

 

[soundxplorer]

Next is literally a 0% APR financing contract (see the attachment) where you own the phone after it's paid for.
Why would you call that a lease?

My bad, you are correct, that's the wrong word and I'll admit I haven't researched NEXT as much as I should. One question though, on NEXT if you've paid all of your installments and you don't upgrade your phone, do they remove those installments and lower your monthly bill?

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The thing is this, on the new Mobile Share Value Plans, once you finish your 2-year contract, your price still drops $15/25 as you're considered off-contract/BYOD at the time.

Are you 100% sure about this?
Clevans said the exact opposite just a few posts ago. I'm not being confrontational, just trying to wade through the misinformation, because obviously only one is correct.

 

[rui no onna]

The thing is this, on the new Mobile Share Value Plans, once you finish your 2-year contract, your price still drops $15/25 as you're considered off-contract/BYOD at the time. The only time you'll be paying extra is for the duration of the 2-year contract.

Prices with iPhone 6 64GB or iPhone 6 Plus 16GB assuming device is kept for 3 years.

2-Year Contract MSVP 2GB
Year 1: $80/mo * 12 = $960 service, $299 upfront
Year 2: $80/mo * 12 = $960 service
Year 3: $65/mo * 12 = $780 service
TOTAL: $2,999

BYOD MSVP 2GB
Year 1: $65/mo * 12 = $780 service, $749 upfront
Year 2: $65/mo * 12 = $780 service
Year 3: $65/mo * 12 = $780 service
TOTAL: $3,089

NEXT 12 MSVP 2GB
Year 1: $65/mo * 12 = $780 service, $37.50/mo * 12 = $450
Year 2: $65/mo * 12 = $780 service, $37.50/mo * 8 = $300
Year 3: $65/mo * 12 = $780 service
TOTAL: $3,090

NEXT 18 MSVP 2GB
Year 1: $65/mo * 12 = $780 service, $31.25/mo * 12 = $375
Year 2: $65/mo * 12 = $780 service, $31.25/mo * 12 = $375
Year 3: $65/mo * 12 = $780 service
TOTAL: $3,090

 

[zhenya]

My bad, you are correct, that's the wrong word and I'll admit I haven't researched NEXT as much as I should. One question though, on NEXT if you've paid all of your installments and you don't upgrade your phone, do they remove those installments and lower your monthly bill?

Yes, you only pay for the phone until it is paid off. It is simply the price of the phone divided by 20 or 24 payments. No interest, no fees, no contract. Once it is paid for, you pay only for service.

As for your comments re: leasing, I would strongly disagree. Whether in business or in personal life there can be strong economic benefits to leasing so long as it is done intelligently.

 

[rui no onna]

Are you 100% sure about this?
Clevans said the exact opposite just a few posts ago. I'm not being confrontational, just trying to wade through the misinformation, because obviously only one is correct.

Not 100% sure but 95% sure (from reading the fine print). I'm on the 10GB plan so for me, BYOD/NEXT is always cheaper than 2-year contract. Also, this statement only applies to the new Mobile Share Value Plans. Clevans' comment is correct for anyone still on older grandfathered plans.

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Its not all that straightforward - even with a lower plan, if you're still on a 2 year contract, then switching to NEXT, depending on when you get your 2 year contract device, gets that device cleared so you're getting out of the old contract without any EFT plus you get to keep/resell the old device.

The old unlimited data are nice but you can't get mobile hotspot on it, which can be quite handy. Again all depends on one's own needs.

NEXT is subsidized on mobile share, not as much as a contract device, so either way, one isn't really going to be paying full price.

No, NEXT is not at all subsidized. It's 0% financing and you basically pay full MSRP / # of installments. Also, the early upgrade/no ETF thing is just a special case for this year and only applies to folks who signed a 2-year contract before February 2014. Going forward, if you're still on 2-year contract, then you won't be eligible for NEXT.

 

[aristobrat]

One question though, on NEXT if you've paid all of your installments and you don't upgrade your phone, do they remove those installments and lower your monthly bill?

Correct. As soon as you've paid the full price for the phone, the price of the installment plan drops off the bill.

If you guys ever do decide to upgrade your phones, you can use BYOD and pay the full price of the phone up-front, or you can use NEXT and pay the full-price of the phone over over 20/24 months. There's no penalty for paying for the phone monthly with Next, and no discount for paying for the phone all-at-once with BYOD. Either way, you pay full price for the phone.

 

[sooner518]

heres our 2 iphone bill, both with unlimited data. I dont want to give up our unlimited data, and the Next plan was not cheaper when AT&T tried to push me to it.

my wife and i both sell our old phones for about the same as the new phone costs (a little less but maybe a difference of $50-60 or so).

 

[sonicrobby]

I personally dont like paying more monthly, and I dont like having to return phones that I am 'renting'. Though I may consider going on next in a few years, and just buy my phones outright to only pay $15 a month. It honestly doesnt affect me how much I pay over a 2 year period, what gets me is what I pay monthly.

 

[Daniel L]

I'm currently paying
29.99 for 300 minutes
30 for unlimited data
10 for unlimited text

I was told my currently monthly bill won't change once my contract is up on dec 6. If I'm paying a subsidy for my current phone, then wouldn't my current bill go down once the contract is up?

conversely, if I were to enroll in Next I was told my current bill wouldn't change at all. If I'm paying a subsidy now, then wouldn't that discount my bill on next?

The subsidy is hidden in your monthly charges. That's why it's always better to do a contract if you're on an older plan (not mobile share). You can either pay full price on the phone or get a $450 discount on it, your monthly charges will be the same.

 

[rui no onna]

I personally dont like paying more monthly, and I dont like having to return phones that I am 'renting'. Though I may consider going on next in a few years, and just buy my phones outright to only pay $15 a month. It honestly doesnt affect me how much I pay over a 2 year period, what gets me is what I pay monthly.

Seems like your aversion to Next is more psychological than financial. Also, Next is a financing program. If you're buying your phone outright, then you're not on Next.

 

[RetiredInFl]

My guess is the vast majority of people HERE (not "normal" people ) keep their phone for ONE or TWO (at most) years. I think a 3yr comparison for THIS FORUM is unrealistic.

Prices with iPhone 6 64GB or iPhone 6 Plus 16GB assuming device is kept for 3 years.

 

[T5BRICK]

I personally dont like paying more monthly, and I dont like having to return phones that I am 'renting'.

You don't have to return the phones and you aren't renting them. You can keep the phones once they are paid off, and the monthly payment is essentially a 0% interest loan(that you can pay off with a lump sum at any time after the first 2 months).

 

[rui no onna]

My guess is the vast majority of people HERE (not "normal" people ) keep their phone for ONE or TWO (at most) years. I think a 3yr comparison for THIS FORUM is unrealistic.

Not usual but they exist. Those numbers were for comparison for soundxplorer who's still using an iPhone 3GS.

 

[normanfox]

this is why.... saving over $1000 over the course of 2 years:

 

[rui no onna]

You don't have to return the phones and you aren't renting them. You can keep the phones once they are paid off, and the monthly payment is essentially a 0% interest loan(that you can pay off with a lump sum at any time after the first 2 months).

Actually, it seems like you can pay off the lump sum balance at any time. The 2-month requirement is only if you plan on just paying of the 12-month or 18-month balance in order to do an early upgrade (which is pretty stupid, imho, a 2-month old phone will have much better trade-in/resale value than just 25-40% of MSRP).

 

[sonicrobby]

Seems like your aversion to Next is more psychological than financial. Also, Next is a financing program. If you're buying your phone outright, then you're not on Next.

Not really, I just renewed my 2 year contract. If I switched to next I would be paying $12 more a month than what I pay now. Thats why Im not on next.

If I'm on my 2 year contract, and the contract is up, theyd charge me the same monthly rate as previously correct? Therefore Id be paying the same price as paying for the phone + service, but without actually getting a new phone. At that point switching to next would make sense since it would drop my monthly payments by $35 or so.

I just want the option that takes the least amount of my paycheck each month. I keep very close tabs on my finances, and prefer to make 1 time purchases over monthly payments.

 

[greytmom]

I don't need a 10GB line so why spend money on that. I don't feel like having my bill go up by 27 dollars a month for 2 years to pay off the iPhone (I know the net is less then 27 but either way my bill goes up).

I'm happy with the subsidized plan, it works for me and that's what its all about isn't it? One size does not fit all. What may work for you, doesn't work for me.

I'm with you.

 

[rui no onna]

Not really, I just renewed my 2 year contract. If I switched to next I would be paying $12 more a month than what I pay now. Thats why Im not on next.

If I'm on my 2 year contract, and the contract is up, theyd charge me the same monthly rate as previously correct? Therefore Id be paying the same price as paying for the phone + service, but without actually getting a new phone. At that point switching to next would make sense since it would drop my monthly payments by $35 or so.

I just want the option that takes the least amount of my paycheck each month. I keep very close tabs on my finances, and prefer to make 1 time purchases over monthly payments.

Hmm, quick guess, are you on Mobile Share 10GB with either iPhone 6 64GB or iPhone 6 Plus 16GB? In that case, you paid $299 upfront for the phone (+$40 upgrade fee if you couldn't get it waived). That upfront cost could have easily covered the extra $12.50/mo for 20 months ($250) for Next payments and still leave you with change.

 

[soundxplorer]

Not 100% sure but 95% sure (from reading the fine print). I'm on the 10GB plan so for me, BYOD/NEXT is always cheaper than 2-year contract. Also, this statement only applies to the new Mobile Share Value Plans. Clevans' comment is correct for anyone still on older grandfathered plans..

I just talked to AT&T customer service and they confirmed - on Mobile Share, after the 2 year contract is up, your monthly smartphone plan goes down to the BYOD rate. This makes total sense, it is how it should be, but I know never to assume anything with a cellular company.

So, what you said earlier is indeed a very simple way to figure it out. If you pick one of the lower Mobile Share data plans, going with a 2 year contract will save you money. For an iPhone 6 (16GB) you're basically saving $100 off the price of the phone in exchange for a 2 year service agreement.

 

[Clevans]

Why are people still doing contract upgrades with AT&T?

[/COLOR]

Are you 100% sure about this?
Clevans said the exact opposite just a few posts ago. I'm not being confrontational, just trying to wade through the misinformation, because obviously only one is correct.

I was replying to zazaza about their 2 year contract that is not a mobile share plan and the costs and what was in the article I read. For a mobile share plan the price does go down at the end of the 2 years

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I just talked to AT&T customer service and they confirmed - on Mobile Share, after the 2 year contract is up, your monthly smartphone plan goes down to the BYOD rate. This makes total sense, it is how it should be, but I know never to assume anything with a cellular company.



So, what you said earlier is indeed a very simple way to figure it out. If you pick one of the lower Mobile Share data plans, going with a 2 year contract will save you money. For an iPhone 6 (16GB) you're basically saving $100 off the price of the phone in exchange for a 2 year service agreement.

But, keep in mind that you will pay that 2 year contract extra charge for the full 24 months even if the cost of the phone is already paid, depending on which family share plan you have

 

[Brien]

Because I still have unlimited data and want to keep it that way.

Next question?

Ditto.

 

[green tea]

Why are people still FINANCING mobile phones with ATT?

($40 for 2gb + $40 smartphone + 12 taxes) *24mos = $2208
$299 iphone + $48 taxes + $40 upgrade fee = $387
Total $2595

Non contract without financing
35/mo 1gb (no overage risk) tax inc. * 24mo = $840
Iphone $750 + 48taxes = $798
Total 1638

you're not even comparing the same data plan...
not to mention all the variables in people's plan

 

[sonicrobby]

Hmm, quick guess, are you on Mobile Share 10GB with either iPhone 6 64GB or iPhone 6 Plus 16GB? In that case, you paid $299 upfront for the phone (+$40 upgrade fee if you couldn't get it waived). That upfront cost could have easily covered the extra $12.50/mo for 20 months ($250) for Next payments and still leave you with change.

I want to pay less monthly though ._.

 

[smohr33]

2 year contract works out just slightly better for me.

6GB mobile share with 2 lines.
One 6, one 6+.

24 month cost with NEXT 18 would be $4632. Monthly = $193. $63 monthly for phones.
24 month cost with 2yr contract is $4518. Monthly = $160. $598 +$80 down for phones.

 

[rui no onna]

I want to pay less monthly though ._.

And as I mentioned, that's more psychological rather than financial. You do save a little bit of money over a 2-year period with Next. However, I can definitely understand the psychology of not wanting the higher monthly bill.