Your bill will stay the same even with monthly payment on the phone because your cost per line will be cut in half. See, VZ makes you feel you are getting a good deal with 2 year contract but you are actually paying double the fee per line access. It's all a scam. Actually, it's a much better deal to do monthly payments because that way you can upgrade every year.
I would be paying double per line but I would be paying $349 for the phone instead of $864 for the phone with the payment plan. That's where it equals out.
I would pay cash in the amount of $349 and pay $40 per month access fee for 2 years. That is a total of $1309. My total price on the phone would be $829.
If I bought the phone on payment, the price is $864. and if I activated with Verizon, I would be charged $20 per month access fee for 2 years. That is a total of $1344. I am am saving $35.
If I did not get a new phone and sign a new contract every 2 years, I would still be charged the $40 access charge instead of the $20.
In that situation, you are correct that I would be getting the shaft paying $40 per month and still using my old phone. That is why I get a new phone every 2 years.
If you buy a phone on payment, you pay retail price.
That would be $864 (36 × 24 ) plus $20 access fee × 12 = $1104
In two years that would be $1344 ($20 × 24 + $864)
$1344 - $1309 = $35. You would be paying an extra $35 for the privilege of being able to get a new phone every year, which is a decent deal.
On the payment plan you are still locked into 2 years unless you want to pay the remaining balance.
The benefit is having no contract and the freedom to go to another carrier.
It's all about the same either way.