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

Discussion in 'iPhone' started by Steviejobz, Sep 10, 2014.

  1. Steviejobz macrumors 68000

    Jun 19, 2010
    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.
  2. rui no onna macrumors 603

    rui no onna

    Oct 25, 2013
    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.
  3. potaco, Sep 10, 2014
    Last edited: Sep 11, 2014

    potaco macrumors regular

    Mar 12, 2010
    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.
  4. rui no onna macrumors 603

    rui no onna

    Oct 25, 2013
    Correction, $25*24 = $600 so that's $199 + $600 = $799 (+ tax/fees).
  5. PellieM macrumors newbie

    Sep 10, 2014
    what value do I get if I trade in an iphone 4s with a cracked back :D
  6. CrAkD macrumors 68040


    Feb 15, 2010
    Boston, MA
    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.
  7. potaco macrumors regular

    Mar 12, 2010
    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!

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