At&t new installment plans

[Ezzzzy1]

Just wondering what anyone outside of At&t has to say about this. It still seems like it makes more sense to just commit to the 2 year contract (ive been with them for almost 20 years) and pay for the phone vs. paying the installments and upgrading sooner with a potential trade in option.

Buuut, I spoke with someone that works for At&t and they said the way to go now days is the installments(At&t Next).

So what gives?

Anyone dun gone down this path yet that understands it all?

[Slo]

Sorry, I don't understand it completely, but..... I am on the next program, so every year I get a new phone and trade the old one in. However, if you want a new phone early, AT THE STORE you will pay the cancellation fee and the remainder of the phone.

But if you call into AT&T, they have more leverage.... I believe the last I was told when I was asking about cancelling was, if there was a new phone you wanted, you could pay 1 termination fee and start with a new phone but you had to call into AT&T to do so. I will be calling them soon to inquire about the galaxy s6 so maybe a better update in another week or so.

[vort3xr6]

AT&T Next is a scam. You are leasing your device and do not get to keep it after you are done. Requirement is 20 months of payments for a phone you don't own.

No. AT&T’s plan only kicks in after 12 months, so you can’t turn the device in after 6, or even 10 months. You pay for the device in installments, in addition to the Next scam, and you still wait a year before you can turn the phone back in.Let’s break it down: If you paid full price for the Samsung Galaxy S4 ($640), you’d have that cost amortized over 20 months ($32/month). On top of that extra $32/month, you’ll pay a subsidy for the Next program, which is currently unknown. The common thinking is right around $20/month, so we’ll go with that.
Over the course of 12 months, which is the earliest you can opt-out of this plan, you’ll have spent $624 for the device. At that point, you still don’t own the device. After 12 months, you will have paid AT&T nearly the exact cost of the device, and it’s still not yours.

If you keep that device for the full 20 months,you will spend over $1,000 on a $640 phone. I don’t know if you know this, but cell phones don’t appreciate in value. Rather than biting the bullet and paying for the device upfront, you will have gone and paid AT&T a lot of money for the pleasure of using their device for 12-20 months.

[Jmetz]

It's all ball bearings these days.

[madvlad]

Same with the Verizon Edge, nothing but a scam. You're screwed either way on a 2 year contract or this lol

[DriverDave]

It's all ball bearings these days.

...I think it's the 7th fetzer valve.

[Jmetz]

Probably the humidity.

[DriverDave]

That's my all-time favorite movie.

[Matty]

AT&T Next is a scam. You are leasing your device and do not get to keep it after you are done. Requirement is 20 months of payments for a phone you don't own.

Ummm... Not quite!

Same with the Verizon Edge, nothing but a scam. You're screwed either way on a 2 year contract or this lol

i work for AT&T, how is it a scam?!?

[Matty]

On the AT&T 'NEXT 18' plan for example you are simply leasing to own your phone. at 18 months of the 24 month payoff you can simply trade your current device back in and start on a new lease. However, at the 24 month mark you own the device outright. At that point your installments drop off your bill and the device is yours.

Because you're not in a contract anymore you can accelerate your payments at any time and either trade in your device and start over on a new device. Or you can also accelerate your payoff of your device, continue to use it, sell it, give it to someone else, etc...

if you do the "NEXT 18" on say an iPhone 6. You'll pay tax only at point of purchase. At 18 months trade it in you'll have spent $520 at 24 months $650 (the full retail). So ideally you trade it in at the 18 month you don't end up spending the full retail and get to trade to a new device.

the 2yr agreement is still around for the people in the old plans where you paid al a carte for your data and shared minutes.

on the Mobile Share Value Plans the 2 year is NOT the way to go. First there is a $40 one time upgrade fee. And then for only paying the subsidized price say $199 of the $650 retail price for the iPhone 16gb. Att has to earn back the loss of $450 for the subsidized price therefore there's an increase on that line of service.

So on a 10gb plan or higher on the 2 year contract for the iPhone 6 16gb you'll pay $199 plus Tax + $40 (upgrade fee) + $15 (line of service charge) + $25 (monthly increase on line of service for the savings on the subsidized price of the device) for 2 years that equals $1,199.
on 'Next 18'
Tax only + $15 (line of service) + $27.09 (monthly installment for iPhone) over 2 years equals $1,010.

That's a savings of $180 over 2 years on the 'Next' Plan.

Long story short you'll spend less on a 2 year span if you go with the 'NEXT' installment route.

Att, Verizon, T-Mobile, sprint none of them make money on the phones. Only the service. Which is why you now pay for your plans only and add the phones on as installments.

hope that helps, I work at the corporate AT&T store in the Lincoln Commons off of Lincoln and Yosemite in Lone Tree. I make commission so come see me!!!

[madvlad]

Thanks for the explanation Matty. My contract is up with Verizon in August, may come see ya.

[Matty]

Think of it like your cable provider. You pay for a plan. You want a new TV go buy a TV from say Best Buy, Target, Walmart, etc at Full Retail or get a hook up third party.

same with your cell phone provider. You pay for your service. you want a phone, go buy a phone at Full Retail. Or get it third party. The 'NEXT' option just gives you the ability to switch up your phone more often if you choose too!!! As well as not having to fork over the Full Retail right away its amortized, there's no interest. Yiure not financing anything.

[Jmetz]

From what I've read you don't really "trade in" (as I haven't seen anything stating a credit) you give back the phone that you've almost paid off and start back over at $0. Is that correct?

[madvlad]

I guess technically because it's considered a "lease" then yeah you wouldn't get anything credited I'm sure

[Matty]

From what I've read you don't really "trade in" (as I haven't seen anything stating a credit) you give back the phone that you've almost paid off and start back over at $0. Is that correct?

You don't have to give anything back.
You basically choose from 3 installment terms 12/20, 18/24, or 24/30. At the 12, 18, or 24 month mark you've satisfied enough of what you owe to trade in the device and start over on a new installment for a new phone if you choose. Or once you've reached the 20, 24, or 30 month mark you now own the device, your installment drops off, and you can keep the phone or do with whatever you choose to.

[Mother Goose]

hope that helps, I work at the corporate AT&T store in the Lincoln Commons off of Lincoln and Yosemite in Lone Tree. I make commission so come see me!!!

If I had known that, I would have come to you for my Tab S when I picked it up last week! I'll remember that for when my Next is up on my G3.

[Ezzzzy1]

Thanks for all of the info Matty!

I will probably just come down and see you, have you take a look at everything and let me know whats available.

I just bought an Ipad Mini and will need to get that hooked up.

[WolFeYeZ]

Here is my analysis of the 3 choices that I made for myself not too long ago.
https://docs.google.com/spreadsheets...it?usp=sharing

If you want to see my formulas, go to file > download. Really you are losing around $100 to use the option to upgrade every 12 months... which to some degree is worth it.

[Ezzzzy1]

Thanks for posting that Wolfeyez.

Something else worth consideration would be that this is also interest free. Watch them start charging that next year.

[I`m Batman]

I pay $47.22 a month including all taxes and fees for unlimited talk/text/data (up to 3 GB until throttle) with no contract. Still on the network of my choice, AT&T. Just buy my own phone. I did the speed test with my friend that is on AT&T with the same model phone and we got the same speed.

You should look into NET10 or Straight Talk. Same networks (just bring the right phone for the network you want) but much cheaper.

P.S. The phone doesn't have to be unlocked either since you are on the same network. I tested it.