You don't own phone on AT&T Next unless you pay much more

[Steviejobz]

Just want to make some things clear as I've read conflicting posts and I just did some research.

If you are on, for example, a 12-month cycle and you want to upgrade each year you have to trade in the phone. You cannot sell the phone unless you pay it off which is either 8 or 12 more payments. After those extra payments you own it but you will have paid 2x the subsidy price. So the 6+ 64GB is $43/mo which will be $860 on the 20 month plan. That's MUCH more to "own" the phone vs. getting it subsidized for $400 and then being able to sell it for around $200 in a year. So we're talking $860 or $200 for a $660 difference.

If you can get $25 off you bill then that shaves $300 from that $660 but you are still paying more to "own " the phone. Note that the $25 discount is only available for some can but others like me can only save $10.

It might make some sense if you can get the $25 monthly discount and then plan on trading in every 12 months. You will have paid $516 and get a new phone and less a $300 discount the difference is $216 which is basically what it costs the person who does the buy on contract and then sell for 50% of cost of next phone.

 

[rui no onna]

If you are on, for example, a 12-month cycle and you want to upgrade each year you have to trade in the phone. You cannot sell the phone unless you pay it off which is either 8 or 12 more payments. After those extra payments you own it but you will have paid 2x the subsidy price. So the 6+ 64GB is $43/mo which will be $860 on the 20 month plan. That's MUCH more to "own" the phone vs. getting it subsidized for $400 and then being able to sell it for around $200 in a year. So we're talking $860 or $200 for a $660 difference.

If you can get $25 off you bill then that shaves $300 from that $660 but you are still paying more to "own " the phone. Note that the $25 discount is only available for some can but others like me can only save $10.

It might make some sense if you can get the $25 monthly discount and then plan on trading in every 12 months. You will have paid $516 and get a new phone and less a $300 discount the difference is $216 which is basically what it costs the person who does the buy on contract and then sell for 50% of cost of next phone.

Correction. You pay in installments. While the price of the phone is $850, you've only paid around $510 after one year ($42.45*12 months). AT&T will waive the remaining $340 ($42.45*8 months) worth of payments when you trade in your phone. If you're already on a new Mobile Share Value Plan 10GB, Next is cheaper than 2-year contract. By the way, $200 resale is pretty abysmal for a 1-year old 64GB iPhone. Also, unless you can get a cross upgrade for free (meaning some other schmuck is probably subsidizing it), you'll be paying $650 for that early upgrade, not $400.

 

[potaco]

Threads like this are borderline pointless; the cheapest option will depend on what plan you're on, how many lines, upgrade eligibility, etc.

If you're currently on a 10GB Mobile Share Value plan with an off-contract phone and wanted to pay the subsidy price... You would pay $199 for the contract-priced phone and an extra $25/mo for 2 years. That's a total of $199 + $600 = $799 (+ tax/fees) for a $649 phone AND you're not eligible to upgrade for another year.

If you're currently on a 10GB Mobile Share Value plan with an off-contract phone and wanted to switch to AT&T Next... You would pay $0 up-front for the phone (just tax), $32.50/mo for AT&T Next 12, and your monthly bill would stay the same. When your phone is up for trade-in, you can opt to pay the remaining balance and keep the phone. In this case, you'd pay $649 (+ tax) for a $649 phone and can get a new phone every year. Or you can trade in the phone, which comes out to $390 for the year, but with resale being so high, it's almost definitely better to keep it and sell it on your own.

In these scenarios, AT&T Next is the cheaper option, which is the same as buying it off-contract with 0% APR.

 

[rui no onna]

If you're currently on a 10GB Mobile Share Value plan with an off-contract phone and wanted to pay the subsidy price... You would pay $199 for the contract-priced phone and an extra $25/mo for 2 years. That's a total of $199 + $500 = $699 (+ tax/fees) for a $649 phone AND you're not eligible to upgrade for another year.

Correction, $25*24 = $600 so that's $199 + $600 = $799 (+ tax/fees).

 

[PellieM]

what value do I get if I trade in an iphone 4s with a cracked back

 

[CrAkD]

If you upgrade every year you never pay that $199 price. I plan to do next and pay it off in 11 months unlock it and sell it. Same as paying outright without the need to have the money upfront.

 

[potaco]

Correction, $25*24 = $600 so that's $199 + $600 = $799 (+ tax/fees).

I knew those numbers seemed closer than I had calculated them in the past... I think I was in AT&T Next mode and thinking of "20" installments, though a 2 year contract would obviously consist of 24 months. Thanks for the catch!

 

[gregnauman]

http://www.theverge.com/2013/7/16/4528404/att-next-phone-upgrade-plans-a-huge-ripoff