New Verizon plans (no more contract)

[corn18]

I have Verizon. Not sure why other than it's the only provider that seems to work at my house and that allowed me to drop our home phone. We have 4 phones (DW, 2xDD, 1xMIL). I was always irritated with the cost (4 x $40 + $80 for 10GB = $240 + taxes each month). When I heard about the new no contract plan, I was curious so I did some research. I would have thought explaining it would be straight forward, but everyone wanted to include the financing of a new phone vs. the old plan. After much frustration, I have determined that come next year when my 2 years starts expiring for each phone, I will save 4x$20 and another $15 for data. So a $95 / month savings.

But, oh no, we won't get a "free" upgrade every year. Well, we all know that wasn't free. $199 up front plus $20 / month for 2 years mans that free phone was always costing you $679. And if you were like my wife and didn't upgrade every two years, you were paying a lot of extra. I am very happy I now have the option to keep the phone I have and save $20 / month or not pay $679 out of pocket. If everyone keeps their phone for an extra year after our current obligation is up, that will save me $960 / year. Wow.

I think the fam will be grumbling a lot when I resist everyone getting new phones next year, but they never really wanted a new phone every 2 years anyway, so I think this will be a money saving change for us. KIndof like deciding to lease a new car every 3-4 years or buy one and keep it for a long time. Although smart phones change a lot faster than cars. I'll be honest, though, we have everything from iPhone 4's to 6's and the 4 does pretty much everything we need it to.

I'm betting the used verizon phone market will heat up after this change. Or people will just finance a new phone just like they used to vs. saving a lot of money buying a year old phone off eBay.

Tom

[FLA]

And if you were like my wife and didn't upgrade every two years, you were paying a lot of extra. I am very happy I now have the option to keep the phone I have and save $20 / month or not pay $679 out of pocket. If everyone keeps their phone for an extra year after our current obligation is up, that will save me $960 / year. Wow.


Tom

I don't have Verizon but I assume what you said about paying more if you don't upgrade every 2 yrs. is applicable to most plans. I have never heard this, I usually upgrade maybe year 3 when there is a free iPhone that I really do not pay for. My bill is always the same. Am I screwing up by not upgrading at year 2 and paying monthly for a new phone? I thought the way I did it was saving me money, ugh!

[corn18]

Well, it all depends on how your plan is set up. If you have Verizon under a 2 year contract, you pay $40 / month per phone no matter what. Old phone, new phone, doesn't matter. So there was no way to screw up if you are happy with your current phone. At least you would save $199 (or more) by not upgrading.

[Spiffster]

Bummer that youre stuck with Verizon. From my experience AT&T usually has similar coverage with many, MANY more options available. For example, Cricket, Straight Talk, and a few others operate on the AT&T network. So in our case, we have myself, the wife, and the in-laws all on Cricket for 100/month (Unlimited data). We just picked up some Moto Gs for < 200 each, awesome phones. Im usually a big fan of Apple products, but the iPhones are just insanely overpriced.

[FLA]

Well, it all depends on how your plan is set up. If you have Verizon under a 2 year contract, you pay $40 / month per phone no matter what. Old phone, new phone, doesn't matter. So there was no way to screw up if you are happy with your current phone. At least you would save $199 (or more) by not upgrading.

that kind of stinks! I looked up my AT and T, I'm not under contract and pay nothing for my phone monthly. But I get a$15 off right now, plus 24% employee discount. if I get a new phone, back to contract and lose that $15 discount.

Does anyone know if I can keep my current, no contract plan with, down the road, an unlocked phone? Now, I understand why unlocked is good, if it works in my care, lol

[corn18]

Only applies to new customers or current customers whose contract has expired. Some companies will buy out your Verizon contract if you switch to them.

[Drake3287]

In the exact same boat but with 5 phones on the Family Plan. I think I'll save just under $100. when our contracts are over. The nice thing about the $199. phones was that it made for an easy Christmas present every year! Certainly won't be buying $700. phones every 2 years anymore.

Not sure how this will effect my Apple stock in the long run though, certainly a lot fewer people will be buying phones every 2 years.

[pflyers85]

In the exact same boat but with 5 phones on the Family Plan. I think I'll save just under $100. when our contracts are over. The nice thing about the $199. phones was that it made for an easy Christmas present every year! Certainly won't be buying $700. phones every 2 years anymore.

Not sure how this will effect my Apple stock in the long run though, certainly a lot fewer people will be buying phones every 2 years.

Apple has a loyal following that will still pay full retail for the newest generation phones outside of the contract. Apple fanboys will buy the new generation iphone when it comes out and will sell their one year old iphone on ebay and will recoup a decent amount of money. In the end they will pay around $350-$400 out of pocket. Not very economical but still not $700.

[JoeP]

Can someone please explain the allure of a new phone every 2 years? We have AT&T no contract, and the only time we get "new" phones is when the old ones break, and we always get used ones off ebay or CL. Maybe once you get used to new phones every couple years it is hard to consider otherwise?

[FLA]

I don't want a new phone until this one breaks, I am maybe using 10% of all the features it has, I do not need something more high tech. But I'm on AT&T with no contract as well, they "let" you get your own phone and just stay no contract?

until now, AT&T has always offered me a free iPhone eventually, I wait longer than two years, I agree to go back under the same contract as my no contract plan and it works out. This last time, I don't think they even put me under contract, I just happened to ask maybe 6 months after I got the phone, how much longer was left on my contract and they said I didn't have one.

this is the first time I've gotten an email for a souped up new phone, that I actually have to pay for over time and I lose some $15 credit I get every month that I didn't even know I have. Well, this is not a good deal for someone like me so I will keep waiting. Eventually if they offer a totally free iPhone, no new fees, a contract but the same exact terms as my no contract plan, I'll bite. No way will I pay a ton for a phone, lose the $15 and go back under contract.

I hate this business, I don't like playing games and different people getting better deals.