Why shouldn't I use AT&T Next to get an iPhone 5C

[Adelphos33]

Hear me out... I think I made a way to make the math work

I am at the end of my 4S contract. I like the 5C but I am looking forward to what Apple may do next year with the iPhone 6 (or whatever they call it).

AT&T is offering iPhone 5C for $27 per month under its Next plan.

Let's say I get the iPhone 5C for that. Over 12 months, I pay $324 + tax for my iPhone 5C, which would have cost $199 + tax if I got a two year contract. So over the first twelve months, I pay $125 extra.

At that point in September 2014, I purchase the new iPhone 6 on a two year contract at $299, switching out of the Next program after turning in my iPhone 5C. I called AT&T to confirm I could do this with no penalty under Next.

What I am essentially doing in that case is paying a $125 early termination fee over the 12 month period, which is less than the $375 normal early termination fee for AT&T. That's savings of $250. I could attempt to sell my iPhone 5C to finance payment of the early termination fee, but that takes work, eBay fees, depreciation cost on the phone, etc. Plus, I would have to pay retail for the iPhone 6, which would likely be $749 for a 32 G model.

So under Next, I pay $324 + $299 + $36 (upgrade fee in 2014) = $659 for two phones: iPhone 5C and iPhone 6.

Under two years contracts, I pay $199 + $375 (Early Termination Fee) + $749 - $300 (value of sold iPhone 5C) = $1,023 for two phones: iPhone 5C and iPhone 6

Am I wrong here? Of course my AT&T service bill never changes during because I can't get a lower bill for being off contract, but that's a separate issue

 

[617aircav]

Etf after one year of service is not $350

I look at it this way. If I'm paying for the phone separately, I should not be paying the same bill as if I bought the phone with a subsidy. Att is having you essentially pay for the phone twice.

 

[HDJulie]

I decided to use the Next plan to get my mother an iPad Mini. I was adding it to my existing Mobile Share plan so I'm already out that money regardless of how I get the Mini. With the Next plan, AT&T is financing the cost of the Mini at 0% interest. It's not a bad deal if you aren't adding anything other than the device to a plan you already have to pay for.

 

[skyking517]

One thing you were misinformed about. After the 12th payment you can take the phone back and get a new phone, but you will have to stick with another next program device for a new 20 months, you will NOT be able to sign a two year contract and get a device, unless you pay off the remaining balance of the first device. Again this is only if you want to go into a contract again after the 12th payment.

 

[kthruz143]

honestly i would never use ATT next. We have 2 Iphones and 4 lines on our account ( 2 use to be to talk to my mom and sister that didn't have att a few years ago) Since then we just use the 2 extra lines as upgrades. it gives us 2 upgrades a year. it cost us 240 a year extra but we are able to keep the phones and resell them evening everything out. it works for us

 

[Adelphos33]

One thing you were misinformed about. After the 12th payment you can take the phone back and get a new phone, but you will have to stick with another next program device for a new 20 months, you will NOT be able to sign a two year contract and get a device, unless you pay off the remaining balance of the first device. Again this is only if you want to go into a contract again after the 12th payment.

I called AT&T this morning and they CR told me I would be able to sign a new two year contract at that time. The CR could be misinformed, but she asked a manager for that information.

 

[Curun]

I called AT&T this morning and they CR told me I would be able to sign a new two year contract at that time. The CR could be misinformed, but she asked a manager for that information.

Get it in writing. Come next year... it's your word against theirs and whatever they have writen down in their published policy.

You are playing with fire.

ETF would not be $375 after 12 months as you claim. It's $325 - $10 per month of service. After 12 months it would be $205. http://www.wireless.att.com/learn/articles-resources/early-term-fees.jsp

 

[skyking517]

I called AT&T this morning and they CR told me I would be able to sign a new two year contract at that time. The CR could be misinformed, but she asked a manager for that information.

I'm sorry, but you were definitely misinformed. I work in a AT&T COR store and have for 4 years. You will not be able to go into a two year contract unless u pay off the remaining balance of the phone.

 

[CEmajr]

Etf after one year of service is not $350

I look at it this way. If I'm paying for the phone separately, I should not be paying the same bill as if I bought the phone with a subsidy. Att is having you essentially pay for the phone twice.

I agree. Since they don't lower the bill it makes Next a terrible deal. You're better off just renewing your contract, taking the subsidy, and selling the phone when you're ready to upgrade to the next iPhone.

 

[bohbot16]

I'm going to propose a different plan that I can't guarantee, but I think would help you out. I think you could get a better deal using the new Apple Store trade-in program and traditional AT&T contracts. I haven't seen the trade-in prices at the Apple Store, so I'll estimate them.

9/2013 start a new 2 year contract:
Buy a 32GB iPhone 5C @ $299
Trade in iPhone 4S @ -$200
AT&T upgrade fee @ $36

After 12 months AT&T lets you start a new 2 year contract and charges an extra $250.

9/2014 early upgrade:
Buy a 32GB iPhone 6 @ $549
Trade in iPhone 5C @ -$300
AT&T upgrade fee @ $36

299 - 200 + 36 + 549 - 300 + 36 = $420

It gets down to $348 if you can get AT&T to waive the upgrade fee each year.

 

[617aircav]

I'm going to propose a different plan that I can't guarantee, but I think would help you out. I think you could get a better deal using the new Apple Store trade-in program and traditional AT&T contracts. I haven't seen the trade-in prices at the Apple Store, so I'll estimate them.

9/2013 start a new 2 year contract:
Buy a 32GB iPhone 5C @ $299
Trade in iPhone 4S @ -$200
AT&T upgrade fee @ $36

After 12 months AT&T lets you start a new 2 year contract and charges an extra $250.

9/2014 early upgrade:
Buy a 32GB iPhone 6 @ $549
Trade in iPhone 5C @ -$300
AT&T upgrade fee @ $36

299 - 200 + 36 + 549 - 300 + 36 = $420

It gets down to $348 if you can get AT&T to waive the upgrade fee each year.

32gb iPhone 6 for $549 is not happening. More like $750.

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The only thing needed to decide how bad the next program is-- fact that you are paying twice for a phone

 

[bohbot16]

32gb iPhone 6 for $549 is not happening. More like $750.

I bought an iPhone 5 at launch, starting a new contract with AT&T. Because it's been 12 months I'm now eligible to buy a 32GB iPhone 5S for $549 if I sign a new 2 year contract.

 

[617aircav]

I bought an iPhone 5 at launch, starting a new contract with AT&T. Because it's been 12 months I'm now eligible to buy a 32GB iPhone 5S for $549 if I sign a new 2 year contract.

Sorry didn't know you meant on contract subsidy.

 

[Adelphos33]

I'm sorry, but you were definitely misinformed. I work in a AT&T COR store and have for 4 years. You will not be able to go into a two year contract unless u pay off the remaining balance of the phone.

I bought the phone on contract after another representative wasn't sure about what would happen in this scenario. I get the picture that it will be difficult to get out of a Next plan without at some point paying $20 months.

 

[OneMike]

I've learned to do as much as possible with AT&T through email or live chat so everything is documented.

I would not proceed with this route until you get everything in writing and then hold in to that document.