New phone and Verizon Wireless contract pricing

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Incendiary
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New phone and Verizon Wireless contract pricing

Post by Incendiary » Tue Oct 18, 2016 10:03 pm

I'm thinking of getting a new smartphone (Google/HTC's Pixel XL, 32 GB). I have a few options available from Verizon:

1. Buy the phone outright for $770, continue to pay $20/mo for line charge with no obligations
2. Pay $32.08 for the phone each month, and also pay $20/mo for line charge for 24 months
3. Pay $320 for the phone up front (2 yr contract), and then pay $40/mo for line charge for 24 months
4. Pay $360 for the phone up front (1 yr contract), and then ???

Is anyone familiar with the terms of the 1 yr contract option? Is it $40/mo line charge for 12 months, and then $20/mo thereafter? If so, that seems to be the clear choice.

Best Buy is also selling the phone. They offer 3 payment options. Interestingly, their 24-month payment plan and their 2-year contract plan options are cheaper than Verizon's, but their upfront charge is more. They do offer a $100 Best Buy gift card, but I'm thinking the eBates 1% cash back would not apply if I chose the 24-month payment plan option...

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pondering
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Re: New phone and Verizon Wireless contract pricing

Post by pondering » Tue Oct 18, 2016 10:46 pm

Interesting post. What are the main benefits of the phone over your current one?
--Robert Sterbal | 412-977-3526 call/text

Incendiary
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Re: New phone and Verizon Wireless contract pricing

Post by Incendiary » Tue Oct 18, 2016 10:57 pm

My current phone has terrible battery life, is slow, buggy, restarts or freezes frequently, and has poor GPS reception. My hope is the new phone will not have any of these issues.

cholan
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Re: New phone and Verizon Wireless contract pricing

Post by cholan » Tue Oct 18, 2016 11:04 pm

I am considering the same questions. Will appreciate any answers.

I was thinking of getting the Pixel too. But today's review in NYTimes has given me pause, especially when there is no price advantage over the iphone 7.
http://www.nytimes.com/2016/10/20/techn ... ottom-well

edited to include link to article
Last edited by cholan on Tue Oct 18, 2016 11:26 pm, edited 1 time in total.
...leaving not a rack behind.

SpaceCowboy
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Re: New phone and Verizon Wireless contract pricing

Post by SpaceCowboy » Tue Oct 18, 2016 11:15 pm

Check out the Verizon trade in options. To get those promos, you need to go with option 2, device payments over 24 months.

Incendiary
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Re: New phone and Verizon Wireless contract pricing

Post by Incendiary » Tue Oct 18, 2016 11:29 pm

Comments on the NYTimes article seem to disagree with the review. At least there's that...

bnes
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Re: New phone and Verizon Wireless contract pricing

Post by bnes » Tue Oct 18, 2016 11:37 pm

Or, a way that seems really bogglehead compatible:
  • Purchase a one generation back smartphone (the Nexus 5X for example dipped to $250 for a while).
  • Get pay as you go service from a reseller like Ting ( https://z26qaj3liq9.ting.com/ ). $6 line fee, shareable buckets of voice/text/data.
  • Replace the battery after a year, replace the phone after two.
What's important in cell service: How many lines on same account? Which towers are good in your area (Verizon, ATT, Sprint, T-Mobile or a regional carrier)? What's your past data/text/voice usage? How effectively can you shift usage from data to wifi? How important is penny pinching to you? Do you travel internationally?

Spirit Rider
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Re: New phone and Verizon Wireless contract pricing

Post by Spirit Rider » Wed Oct 19, 2016 2:50 am

5. Wait for Black Friday,

I had Razor Maxx with a severely cracked screen (dropped several times on concrete). It would sometimes not respond to screen touches and other times it would just totally spaz out and start executing things on its own.

Last year on Black Friday, Verizon offered the Droid Turbo 2 /w shatterproof glass /w 2 yr screen warranty (designed for me). It was normally priced at $624 with an instant $200 off, $100 promo code, and a $200 special promotion for the Droid Turbo 2. You could trade in any phone with a cracked screen and get $200 a credit, no matter how bad as long as it would turn on and they could get to the settings for the IMEI.

I ended up with a $13.50 payment for 24 months ($324) and a $200 immediate credit to my bill within a month. The phone essentially cost me $124 net with a $200 free loan for two years.

Of, course wouldn't you know, I now have a phone with a shatter proof screen and extended warranty and even a protective case and I haven't dropped it once.

Incendiary
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Re: New phone and Verizon Wireless contract pricing

Post by Incendiary » Wed Oct 19, 2016 9:19 am

cholan wrote:I am considering the same questions. Will appreciate any answers.

I was thinking of getting the Pixel too. But today's review in NYTimes has given me pause, especially when there is no price advantage over the iphone 7.
http://www.nytimes.com/2016/10/20/techn ... ottom-well

edited to include link to article
I spoke with Verizon today. The 1-year plan is available for businesses only and it is indeed the cheapest option (aside from getting a Nexus 6P or waiting till Black Friday). It is $40/month for 1 year, then back down to $20/month afterwards.

RudyS
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Re: New phone and Verizon Wireless contract pricing

Post by RudyS » Wed Oct 19, 2016 9:56 am

If you go (on any phone) and chose a no-contract option, then Verizon's offer 24 month to pay for the phone option has a hidden drawback. My Galaxy J3 ($168 or $7 a month for 24 months) comes with a 1 year warranty. If I put the whole $168 on my credit card, I get an extended year of warranty. Not so if I use the $7/month plan from Verizon.

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Alexa9
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Re: New phone and Verizon Wireless contract pricing

Post by Alexa9 » Wed Oct 19, 2016 10:01 am

Compare the total cost over two years. The value of the 2 year contract subsidy is around $450. The value of not being in a contract has worth too. Prices could continue to go down.

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DaftInvestor
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Re: New phone and Verizon Wireless contract pricing

Post by DaftInvestor » Wed Oct 19, 2016 10:15 am

Does your state charge tax on the FULL phone cost regardless of whether or not you get a discount or the discounted rate? That might make a slight difference - but in any case - Why not just compare the 2 years costs? Then lean away from a contract if you can...
When you do the math you will see Verizon has it figured out so that they make about the same amount of money regardless. The contract and no-contract options are provided so they can compete with any major competitor regardless of how they price.
Incendiary wrote: 1. Buy the phone outright for $770, continue to pay $20/mo for line charge with no obligations
$770+$20x24 = $1250

With this option you are not constrained to a contract. If better pricing comes along you can switch plans. You can also unlock the phone and switch to another carrier in the future. However - it has the highest upfront cost.
Incendiary wrote: 2. Pay $32.08 for the phone each month, and also pay $20/mo for line charge for 24 months
($32.08+$20)x24 = $1249.42

With this option - you have no contract but if you cancel Verizon they will expect you to pay for the balance on the phone. When you compare it to option 1 you are saving from having to pay upfront.
Incendiary wrote: 3. Pay $320 for the phone up front (2 yr contract), and then pay $40/mo for line charge for 24 months
$320+$40x24=$1280.


Looks like you pay a slight bit more and get locked into a contract - I actually thought this option would be a bit less or exactly equal. (its probably not exactly equal because verizon likes the nice round $20 and $40 numbers). The difference may be even higher than this due to fees/taxes on the $40 versus $20 (do you know what these are in your state).


We can't evaluation option 4 without complete info. Given above - if it were me - I'd go with option 2.

Incendiary
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Re: New phone and Verizon Wireless contract pricing

Post by Incendiary » Wed Oct 19, 2016 10:46 am

DaftInvestor wrote:Does your state charge tax on the FULL phone cost regardless of whether or not you get a discount or the discounted rate? That might make a slight difference - but in any case - Why not just compare the 2 years costs? Then lean away from a contract if you can...
When you do the math you will see Verizon has it figured out so that they make about the same amount of money regardless. The contract and no-contract options are provided so they can compete with any major competitor regardless of how they price.
Incendiary wrote: 1. Buy the phone outright for $770, continue to pay $20/mo for line charge with no obligations
$770+$20x24 = $1250

With this option you are not constrained to a contract. If better pricing comes along you can switch plans. You can also unlock the phone and switch to another carrier in the future. However - it has the highest upfront cost.
Incendiary wrote: 2. Pay $32.08 for the phone each month, and also pay $20/mo for line charge for 24 months
($32.08+$20)x24 = $1249.42

With this option - you have no contract but if you cancel Verizon they will expect you to pay for the balance on the phone. When you compare it to option 1 you are saving from having to pay upfront.
Incendiary wrote: 3. Pay $320 for the phone up front (2 yr contract), and then pay $40/mo for line charge for 24 months
$320+$40x24=$1280.


Looks like you pay a slight bit more and get locked into a contract - I actually thought this option would be a bit less or exactly equal. (its probably not exactly equal because verizon likes the nice round $20 and $40 numbers). The difference may be even higher than this due to fees/taxes on the $40 versus $20 (do you know what these are in your state).


We can't evaluation option 4 without complete info. Given above - if it were me - I'd go with option 2.
Thanks. Last option is $40 for a year, then $20 afterwards.

jjface
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Re: New phone and Verizon Wireless contract pricing

Post by jjface » Wed Oct 19, 2016 10:50 am

cholan wrote:I am considering the same questions. Will appreciate any answers.

I was thinking of getting the Pixel too. But today's review in NYTimes has given me pause, especially when there is no price advantage over the iphone 7.
http://www.nytimes.com/2016/10/20/techn ... ottom-well

edited to include link to article
I took one look at the article and they said that the pixel is initially available on verizon or google FI. Of course that is not correct as you can buy it from the google store to use it on any network (whilst it is in stock). So just one quick glance and I already found a mistake. You really need to check out a decent site for tech reviews and not the NYTimes. Phonearena, android authority, gsmarena, android police, engadget, theverge etc. Virtually everyone is smitten with the new pixels. Main issues are the price and lack of waterproofing. Take a look at the camera comparison they did - very small sample and the ugly yellow cast the iphone 7 has was apparently chosen most over the two better cameras. Most sites give the nod to the S7 over the iphone 7 and then the pixel will give the S7 a run for its money (too early to tell though). The NYtimes is obviously in love with the iphone and very biased. Note that I own an iphone myself so I am not pro android!

If cost is an issue then the nexus 5x and 6P are great cheaper alternatives. I'm not sure the premium of the new pixels is worth it especially if you want the XL. The 6P is an excellent phone and can be bought for $399 - basically half the price for something virtually identical.

Contracts stink and should be banned. I'd buy it outright and just pay the $20 a month. Or do the monthly installments if you must.

smee44
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Re: New phone and Verizon Wireless contract pricing

Post by smee44 » Wed Oct 19, 2016 5:39 pm

I am considering the same phone with the same plan. As my phone is over 3 years old and the battery is lacking these days.

Best buy has told me over the phone if I buy with them the 2 yr contract price doesn't change my month billing at all. I am not sure I believe them yet but I may make a trip into the store once they have the Pixel to figure it out. When I do I'll report back. If it isn't true I'll be looking elsewhere for a phone.

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