First let me say that this is my first post here so be gentle.
I know this has probably been through the ringer multiple times but i am now having trouble deciding on either a 2 year contract or the AT&T next program. But based on my math (which let me say, i am horrible at) it seems like it really comes down to personal preference and whether you want to do zero down or fork over $240 right off the bat.
This is based off of what i want to do. This is for the GS6. and i want to get the insurance for the phone.
ATT Next 24
Data plan: $40
Service Charge: $40
Discount: -$15
due monthly for phone: $22.84
Insurance: $6.99
Total per month: $94.83
2 Year Contract
Data plan: $40
Service charge: $40
Discount: $0
Due monthy fr phone: $0
Insurance: $6.99
Total per month: $86.99
From here there are two different ways of thinking about it. One being (in my case) $86.99 looks a heck of a lot better per month than $94.83. The other being, i just saved $240 (phone plus activation fee) by going with Next.
But over the long haul, which is better?
If you take your $22.84 per month your paying for the phone and times it by 24 months (when your eligible for upgrade) $22.84 X 24 = $548.16
Now do the same with the 2 year contract BUT you multiply $15 by 24 months. $15 X 24 =$360 The $15 in this case is your "discount" that you dont have with the contract, which in my eyes isn't really a discount anyways. It is something that they have to do or else you are paying for the phone twice. See, when you fork over $200 up front, that is essentially a down payment, then within your monthly payment you are paying off the remainder of the phone is some way shape or form. Somewhere, somebody figured that out and that is why they issue a "discount" so that is why i say the $15 is your monthly charge for your phone when under contract for the phone subsidy. I am sure TECHNICALLY in the fine print it may be more but this is the easiest way to compare.
So someone might say, well with the contract it is $360 for 24 months, but what about the $240 you had to pay to get it? ok, $360 + $240= 600. But here you need to take the money that you are saving per month and deduct that from $600.
$94.83 - $86.99= $7.84 THEN times by 24 months=$188.16 minus that from $600=$411.84 is what you pay for the phone in 24 months. VS the $548.16 on Next. and let me point out that with Next, you still dont own the phone. its only at 30 months you own the phone which means you pay $685.20 for it.
To get down to brass tax and see which one is saving the most here it is.
$94.83 X 24 months = $2,275.92
$86.99 X 24 months = $2,087.76 +$240 Phone plus activation =$2,327.76 - $188.16 savings per month = $2,139.60
You end up saving $136.32 by going with a contract in 24 months. At this point it is nickles and dimes but it is a difference. And with Next, you still dont own the phone. Really what it comes down to is preference. If you want to upgrade every 2 years (or sooner if you go with Next 12 or 18) and dont mind paying the extra each month, then next is for you. If you dont mind the $240 up front and want a cheaper monthly payment the get a contract. For me, i will forget the $240 after a few weeks but will always see my bill. i mean, technically you are under an agreement with next to pay a monthly payment and if leave early or want to upgrade early, you are responsible to pay off the remainder of the phone anyway, sounds a lot like a 2 year contract.
Let me point out that i could be completely wrong here although i think its pretty accurate so be nice and apparently i had to much time on my hands last night.
Thanks
I know this has probably been through the ringer multiple times but i am now having trouble deciding on either a 2 year contract or the AT&T next program. But based on my math (which let me say, i am horrible at) it seems like it really comes down to personal preference and whether you want to do zero down or fork over $240 right off the bat.
This is based off of what i want to do. This is for the GS6. and i want to get the insurance for the phone.
ATT Next 24
Data plan: $40
Service Charge: $40
Discount: -$15
due monthly for phone: $22.84
Insurance: $6.99
Total per month: $94.83
2 Year Contract
Data plan: $40
Service charge: $40
Discount: $0
Due monthy fr phone: $0
Insurance: $6.99
Total per month: $86.99
From here there are two different ways of thinking about it. One being (in my case) $86.99 looks a heck of a lot better per month than $94.83. The other being, i just saved $240 (phone plus activation fee) by going with Next.
But over the long haul, which is better?
If you take your $22.84 per month your paying for the phone and times it by 24 months (when your eligible for upgrade) $22.84 X 24 = $548.16
Now do the same with the 2 year contract BUT you multiply $15 by 24 months. $15 X 24 =$360 The $15 in this case is your "discount" that you dont have with the contract, which in my eyes isn't really a discount anyways. It is something that they have to do or else you are paying for the phone twice. See, when you fork over $200 up front, that is essentially a down payment, then within your monthly payment you are paying off the remainder of the phone is some way shape or form. Somewhere, somebody figured that out and that is why they issue a "discount" so that is why i say the $15 is your monthly charge for your phone when under contract for the phone subsidy. I am sure TECHNICALLY in the fine print it may be more but this is the easiest way to compare.
So someone might say, well with the contract it is $360 for 24 months, but what about the $240 you had to pay to get it? ok, $360 + $240= 600. But here you need to take the money that you are saving per month and deduct that from $600.
$94.83 - $86.99= $7.84 THEN times by 24 months=$188.16 minus that from $600=$411.84 is what you pay for the phone in 24 months. VS the $548.16 on Next. and let me point out that with Next, you still dont own the phone. its only at 30 months you own the phone which means you pay $685.20 for it.
To get down to brass tax and see which one is saving the most here it is.
$94.83 X 24 months = $2,275.92
$86.99 X 24 months = $2,087.76 +$240 Phone plus activation =$2,327.76 - $188.16 savings per month = $2,139.60
You end up saving $136.32 by going with a contract in 24 months. At this point it is nickles and dimes but it is a difference. And with Next, you still dont own the phone. Really what it comes down to is preference. If you want to upgrade every 2 years (or sooner if you go with Next 12 or 18) and dont mind paying the extra each month, then next is for you. If you dont mind the $240 up front and want a cheaper monthly payment the get a contract. For me, i will forget the $240 after a few weeks but will always see my bill. i mean, technically you are under an agreement with next to pay a monthly payment and if leave early or want to upgrade early, you are responsible to pay off the remainder of the phone anyway, sounds a lot like a 2 year contract.
Let me point out that i could be completely wrong here although i think its pretty accurate so be nice and apparently i had to much time on my hands last night.
Thanks
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