Its not a 2 year contract but if you decide to cancel you have to pay the retail price of the phone. I'd rather pay the amount of the phone $199.99 for a 2 year contract phone versus $500+ (or FULL retail price). You might not be paying that much up front but it adds up in the future and your paying for retail.... not worth it...
AT&T Next Plan or 2 Year Contract??
- Thread starter JWG2011
- Start date
Exactly. What At&t is pushing is that you can upgrade after 12-18 months which means that the phone is paid in full and you just became the owner of the phone and now your going to trade it in or keep it to get another phone to pay off at RETAIL price....
TL;DR - You pay about $150-$200 more on NEXT12 over 24 months (2 upgrade cycles). If your phone is in bad shape, you'll pay the same but won't get a new phone in 12 months. NEXT18 over 24 months (1.3 upgrade cycles) is cheaper at about $100 extra. If you don't care about upgrading sooner, the 2 Year plan is cheaper over 24 months but more costly upfront. If you have all the cash upfront, like to upgrade every 12months, and feel comfortable selling your phone...pay for it in cash. I think the NEXT12 "functions" like a loan with 10% APR relative to paying cash upfront. NEXT18 is more like 7% APR. 2Year Contract could be like 5% APR but a third as down payment.
---
Well you don't keep your phone when you upgrade on the Next.
Case1: If you bought the phone for cash off-plan you'd pay $749. If you could sell the phone on Craigslist or Amazon in a year for $300, then you'd only be paying $350.
Case2: If you go with Next plan, you don't pay anything but tax up front. You pay $32.45 per month for 12 months (total $389.40). You have to give the phone back to ATT if you want to upgrade to the next phone. ((trade-in of current-financed device in good and functional condition, and purchase of new qualified device with wireless service plan.))
Case3: With the 2year plan, you are on contract for 2-years. You pay $199 up front and then pay an additional $15/mo for 24 months or $360 dollars (if you're lucky could be up to $600). At the end of 2-years you've paid $559 (up to $799 depending on savings). If your phone is still worth anything after 2 years, you can sell it for say $150? So your final price is $400-600 dollars? To compare with the above 2 scenarios, we cut that in half so its maybe $200-300 per year you are paying?
Its still cheaper over the course of 2 years to stay on the 2-year plan. Granted, your phone is older by the end. ATT actually wants you to switch to the Next12, because they'd make the most money. Your phone is newer so it's resale should be higher for ATT when they sell it. Plus, you pay the most per month.
ATT is hoping your desire for a new phone exceeds your desire to save money. If you want a newer phone more often, pay in cash or go with NEXT. Incidentally if you can wait a little, the NEXT 18 actually saves you more because over the same time period (18 months) you pay less (NEXT12 is $584 vs NEXT18 is $489). Over 2 years, you pay NEXT12 $778 vs NEXT18$649 vs 2YRContract $559-$799 less anything you can sell the old phone for.
It all depends on the market for your old phone (assuming IPhones), paying cash could be the cheapest as IPhone 5s still going for $300-$400 on amazon. Or the Galaxy S4 is $350 and the S2 is $180.
---
Well you don't keep your phone when you upgrade on the Next.
Case1: If you bought the phone for cash off-plan you'd pay $749. If you could sell the phone on Craigslist or Amazon in a year for $300, then you'd only be paying $350.
Case2: If you go with Next plan, you don't pay anything but tax up front. You pay $32.45 per month for 12 months (total $389.40). You have to give the phone back to ATT if you want to upgrade to the next phone. ((trade-in of current-financed device in good and functional condition, and purchase of new qualified device with wireless service plan.))
Case3: With the 2year plan, you are on contract for 2-years. You pay $199 up front and then pay an additional $15/mo for 24 months or $360 dollars (if you're lucky could be up to $600). At the end of 2-years you've paid $559 (up to $799 depending on savings). If your phone is still worth anything after 2 years, you can sell it for say $150? So your final price is $400-600 dollars? To compare with the above 2 scenarios, we cut that in half so its maybe $200-300 per year you are paying?
Its still cheaper over the course of 2 years to stay on the 2-year plan. Granted, your phone is older by the end. ATT actually wants you to switch to the Next12, because they'd make the most money. Your phone is newer so it's resale should be higher for ATT when they sell it. Plus, you pay the most per month.
ATT is hoping your desire for a new phone exceeds your desire to save money. If you want a newer phone more often, pay in cash or go with NEXT. Incidentally if you can wait a little, the NEXT 18 actually saves you more because over the same time period (18 months) you pay less (NEXT12 is $584 vs NEXT18 is $489). Over 2 years, you pay NEXT12 $778 vs NEXT18$649 vs 2YRContract $559-$799 less anything you can sell the old phone for.
It all depends on the market for your old phone (assuming IPhones), paying cash could be the cheapest as IPhone 5s still going for $300-$400 on amazon. Or the Galaxy S4 is $350 and the S2 is $180.
It goes like this.
Its always going to be more expensive to upgrade every 12 months vs every 24 months. Probably.
ATT is hoping you won't want to pay the outstanding balance when you upgrade using the NEXT12 or NEXT18 plan. IF you do pay the outstanding balance when you want to upgrade and then sell it on Amazon/Ebay/CraigsList, THEN
Over 24 months the "monthly cost is like this"
NEXT12 is $32.45/mo
NEXT18 is $27.05/mo
2YEAR is $25/mo (plus $199 upfront) = 33.29
NEXT12 = NEXT18 = $649
2YEAR = $799
In all 3 cases, you have a phone in 20-24 months. You can then sell that phone for (Galaxy S3 goes for $150).
Net price is $500 on NEXT12/18 vs $649 on 2Year Plan.
BUT WAIT! You want to upgrade sooner. You want to upgrade much sooner...say in 12 months. Can't do that with the 2 year plan.
NEXT12 you paid $389 and trade-in old phone to get a new phone and restart the NEXT12 payment plan.
NEXT12 you paid $389 and pay-off your plan $260. Sell your phone (Galaxy S4 is $300) and so net pay $349. Do this again in 12 months.
NEXT12+Trade = $778
NEXT12+PayOff = $698.
Upgrading every 12 months costs you an extra $278 to $198 dollars. Or $8-$12/mo.
In all cases, I can't see why anyone would go for a 2 Year Contract?
Its always going to be more expensive to upgrade every 12 months vs every 24 months. Probably.
ATT is hoping you won't want to pay the outstanding balance when you upgrade using the NEXT12 or NEXT18 plan. IF you do pay the outstanding balance when you want to upgrade and then sell it on Amazon/Ebay/CraigsList, THEN
Over 24 months the "monthly cost is like this"
NEXT12 is $32.45/mo
NEXT18 is $27.05/mo
2YEAR is $25/mo (plus $199 upfront) = 33.29
NEXT12 = NEXT18 = $649
2YEAR = $799
In all 3 cases, you have a phone in 20-24 months. You can then sell that phone for (Galaxy S3 goes for $150).
Net price is $500 on NEXT12/18 vs $649 on 2Year Plan.
BUT WAIT! You want to upgrade sooner. You want to upgrade much sooner...say in 12 months. Can't do that with the 2 year plan.
NEXT12 you paid $389 and trade-in old phone to get a new phone and restart the NEXT12 payment plan.
NEXT12 you paid $389 and pay-off your plan $260. Sell your phone (Galaxy S4 is $300) and so net pay $349. Do this again in 12 months.
NEXT12+Trade = $778
NEXT12+PayOff = $698.
Upgrading every 12 months costs you an extra $278 to $198 dollars. Or $8-$12/mo.
In all cases, I can't see why anyone would go for a 2 Year Contract?
No way I'm making extra payments to my bill every month just so I can 'upgrade' my phone every 12 to 18 months. I'll just lay down the $100-$200 upfront for the phone and be done with it for 2 years. Mine and my wifes combined att bill is only $127 per month. 4 gb data, she has unlimited text, and I have 200 text. I never exceed text and we never even get close to 4 gigs of data used.
I went with NEXT, because I was in the middle of my 2 year contract with AT&T, but wanted new phones. I also wanted to keep my $25 off each line with my Mobile Share Plan.
Sent from my Galaxy S5 Active using Tapatalk
Sent from my Galaxy S5 Active using Tapatalk
I am so confused with this ATT Next plan. Am I doing this math correct for two lines? - can someone please confirm. I will appreciate.
10GB Data $100
Monthly Access $40 x 2 = $80
Next 12 Payment $32.50 x 2 = $65
Discount on Monthly Access -$25 * 2 = $50
Total = $195 + Tax
How is that even cheap compared to two year contract? - My current bill for two year contract is $145 .. one line with 3GB data and one line with unlimited data. (Which BTW I never use much)
Isn't it better to do a 2 year contract on say Black Friday when phones are $100 cheap and sometime even 99c
10GB Data $100
Monthly Access $40 x 2 = $80
Next 12 Payment $32.50 x 2 = $65
Discount on Monthly Access -$25 * 2 = $50
Total = $195 + Tax
How is that even cheap compared to two year contract? - My current bill for two year contract is $145 .. one line with 3GB data and one line with unlimited data. (Which BTW I never use much)
Isn't it better to do a 2 year contract on say Black Friday when phones are $100 cheap and sometime even 99c
I went with NEXT and I got $25 off each line a month, so $15 for each line, instead of $40. Although, I have the 10GB share plan also, so I already had the discount on the lines.
My bill was $140 for two lines with 10GB (before my employee discount was added) and now it's $170 with two phones through NEXT added to it. I decided to go that route, because I didn't have $400 to throw down on two Galaxy S5's, plus if I were to upgrade ahead of my 2 years, I would have had to start all over again and lose my $25 off a line. When I first got AT&T back in November, I was paying between $170 to $180 with just 4GB of shared data and then the newer Mobile Share Plans hit, so I hurried up and switched to the 10GB for that line discount, but then I wanted to upgrade ahead of time in August, so it was best for me to go with NEXT and keep my discount. Also, since going with NEXT, I am not considered to be in a 2 year contract anymore and can upgrade every 18 months if I wish to and be able to leave without paying an EFT, just have to still pay the installments a month.
Though, it's easier for my boyfriend and I with this, because he'll be paying the $118 a month (I get a 21% off discount off my bill through my employer) and I'll be paying the $55 for the two phones. So it makes it cheaper for him and I can get a new phone every 18 months. I guess they stopped doing the line discount unless people switch to NEXT now, it wasn't like that before.
Click that link and it will take you to a chart to show you the difference in savings.https://www.att.com/shop/wireless/next.html?WT.srch=1&wtPaidSearchTerm=at+and+t+%2Bnext&tgccParam=1#fbid=7OQSJQgFq_w
Sent from my Galaxy S5 Active using Tapatalk
Last edited:
The next has its perks.
One, the 1 year manufacturer warranty on electronics. If you are stuck in a two year contract, you have to use the device a year out of warranty. Anything electronic out of warranty scares me lol.
Another reason next is great, in February my husband got the HTC one. Made 6 payments, brought the phone back, paid the last 6 installments and upgraded to the galaxy s5. In all with installments and taxes on the s5, it costed $ 220. That's still cheaper than a 2 year contract. ($200 contract price, $40 activation fee, plus taxes ) plus my bill is cheaper every month.
People get confused on the next cause they think they are paying full retail price for the phone but technically you're not cause you're not gonna keep it that long, you'll be bringing back to upgrade every year.
Posted via the Android Central App
One, the 1 year manufacturer warranty on electronics. If you are stuck in a two year contract, you have to use the device a year out of warranty. Anything electronic out of warranty scares me lol.
Another reason next is great, in February my husband got the HTC one. Made 6 payments, brought the phone back, paid the last 6 installments and upgraded to the galaxy s5. In all with installments and taxes on the s5, it costed $ 220. That's still cheaper than a 2 year contract. ($200 contract price, $40 activation fee, plus taxes ) plus my bill is cheaper every month.
People get confused on the next cause they think they are paying full retail price for the phone but technically you're not cause you're not gonna keep it that long, you'll be bringing back to upgrade every year.
Posted via the Android Central App
ABOSWORTH007
Well-known member
I did something similar. I bought my S4 last September. Rather than waiting until September to upgrade, I went in to AT&T in July and paid the last 2 months so I could upgrade to the S5 sooner. I might do the same thing in a few months if I really like the S6. I am kind of leaning toward the next HTC One that comes out (M9?) though. I'm the only person on my plan so I do have to pay more each month but I think it's worth it to be able to trade the phone in every year. I used to keep my phones for 2 years but I'm such a smart phone dork now that I want newer phones all the time. LOL
steve Sharra
Well-known member
On 2 year contract they charge 200.00 up front plus activation fee and taxes the carrier make up the rest of the cost of the phone is on your bill small fees and other miscellaneous stuff...thats why on the next they charge you full price phone at installments and lower monly bill...at the end they wash off one another..its up to if you want contract and can afford 200.00 up front or installments...but carrier never lose
Posted via the Android Central App
Posted via the Android Central App
Last edited:
Yeah I have always had to buy used phones to try out different things. Now with the next it's possible to get a phone every 6 months now (they require you to keep the phone for 6 installments before you can bring it back early)
Posted via the Android Central App
Posted via the Android Central App
I switched from a grandfathered unlimited data plan and a mobile hotspot device to the next plan. This was this past April and I had been with the iPhone for 5 years and was bored with it and couldn't stand it anymore but I was still in a contract until the middle of September. A former co-worker now works at AT&T so I went and saw him; basically I got out of my iPhone contract early, got rid of the mobile hotspot device, signed up for the 6gb data plan, lowered my monthly bill about $20 and walked out with a brand new Galaxy S5 with only paying about $60. Basically it seems like you lease the phone for a year and trade it in for a new one without having to pay a couple hundred dollars up front... that was kind of the way he explained it to me. He also said their ideal goal is to get everyone off the 2 year plans and switch to the Next plan. Honestly if it costs me an extra $10 a month to be able to upgrade every year I'm good with that. Prior to getting the iPhone3 I used to get a new cell phone about every 4-6 months... I had a gadget problem 
I know this is an Android forum and I'm an iPhone user, however I just wanted to share why I just switched to Next. I don't want to upgrade every year like some folks, I was perfectly happy to have been on a 2-year upgrade cycle starting with the iPhone 3G (skipped the 3GS and got the iPhone 4, skipped the 4s, got the 5, skipped the 5s, and now just ordered the iPhone 6).
After running the numbers, I save $10.33 per month by switching to AT&T Next (or $247.96 total over 2 years) even if I decide to wait 2 years until my next upgrade which I'll probably end up doing (skip the 6s and wait for the iPhone 7).
Here's the breakdown. YMMV obviously but I have the 10GB data plan.
AT&T Next:
$31.21 per month for iPhone 6 installment plan over 24 months
$100.00 per month for 10gb data, unlimited phone & text
$15.00 per line access
---------
$146.21 total per month
$3,509.04 total over 2 years
AT&T 2 year contract with subsidized iPhone 6:
$100.00 per month for 10gb data, unlimited phone & text
$40.00 per line access
------
$140.00 per month
$3,360.00 total over 2 years
PLUS
$357.13 - subsidized phone cost + tax
$40 - AT&T upgrade/activiation fee
-----
$3,757.30 grand total over 2 years
$156.55 per month
So to recap for an upgrade-every-2-years guy like me:
With AT&T Next - $146.21 per month plus you get to keep the phone after 2 years and resell it if you wish
With AT&T 2-year contract - $156.55 per month plus you get to keep the phone after 2 years and resell it if you wish
After running the numbers, I save $10.33 per month by switching to AT&T Next (or $247.96 total over 2 years) even if I decide to wait 2 years until my next upgrade which I'll probably end up doing (skip the 6s and wait for the iPhone 7).
Here's the breakdown. YMMV obviously but I have the 10GB data plan.
AT&T Next:
$31.21 per month for iPhone 6 installment plan over 24 months
$100.00 per month for 10gb data, unlimited phone & text
$15.00 per line access
---------
$146.21 total per month
$3,509.04 total over 2 years
AT&T 2 year contract with subsidized iPhone 6:
$100.00 per month for 10gb data, unlimited phone & text
$40.00 per line access
------
$140.00 per month
$3,360.00 total over 2 years
PLUS
$357.13 - subsidized phone cost + tax
$40 - AT&T upgrade/activiation fee
-----
$3,757.30 grand total over 2 years
$156.55 per month
So to recap for an upgrade-every-2-years guy like me:
With AT&T Next - $146.21 per month plus you get to keep the phone after 2 years and resell it if you wish
With AT&T 2-year contract - $156.55 per month plus you get to keep the phone after 2 years and resell it if you wish
Only use 2 or 4 GB data.
I am looking for iPhone 6 plus 16 gb.
So with next 18 month- 31.21+40 for 2gb data+25 line access
Eligible for upgrade in November- can get the device for 299
I am not sure which one to pick- 2 yr contract or get it now with next. Help please?
I am looking for iPhone 6 plus 16 gb.
So with next 18 month- 31.21+40 for 2gb data+25 line access
Eligible for upgrade in November- can get the device for 299
I am not sure which one to pick- 2 yr contract or get it now with next. Help please?
T Mobile Jump, At&t Next, and Verizon Edge Explai…: http://youtu.be/EHd4OKrdwiQ
Posted via Android Central App
Posted via Android Central App
That video has great info. All those early upgrade plans are a rip off...
Posted via Android Central App
Posted via Android Central App
NEXT IS AN ABSOLUTELY CLEAR RIPOFF
"Let's do the math: AT&T says that the Samsung Galaxy S4 will have a monthly installment fee of $32, on top of your existing AT&T service fees, which already include a device subsidy. The exact amount of that subsidy is unknown — AT&T declined to comment when I asked — but most industry estimates have put it at something like $20 per month. That's how you can get a GS4 for $199 with a new two-year contract, even though it costs $620 at retail: after two years, AT&T will have collected $680 in total device payments from you, and you get to keep the phone.
But the balance tips entirely towards AT&T with Next. Assuming that same $20 subsidy, after 12 months of Next you will have paid AT&T $384 in Next monthly installments and $240 in device subsidies, for a grand total of $620. Again, that's exactly the full retail cost of an unlocked Galaxy S4 — but you don't get to keep that phone, even though you just paid full price for it. You have to trade it in to get a new phone — effectively giving AT&T a free GS4 to refurbish and resell to its next unwitting customer.
Now, you do get to keep your Next phone if you pay 20 monthly installments, which will cost you a whopping $1,040 if you assume a $20 subsidy: $640 in Next payments, plus $400 in subsidies built into your AT&T plan. That's $420 in pure profit for AT&T, which just made you pay full price for a phone while charging you inflated service prices that include a subsidy specifically designed to lower the upfront cost of that phone." Google "The Verge ATT Next Rip off"
"Let's do the math: AT&T says that the Samsung Galaxy S4 will have a monthly installment fee of $32, on top of your existing AT&T service fees, which already include a device subsidy. The exact amount of that subsidy is unknown — AT&T declined to comment when I asked — but most industry estimates have put it at something like $20 per month. That's how you can get a GS4 for $199 with a new two-year contract, even though it costs $620 at retail: after two years, AT&T will have collected $680 in total device payments from you, and you get to keep the phone.
But the balance tips entirely towards AT&T with Next. Assuming that same $20 subsidy, after 12 months of Next you will have paid AT&T $384 in Next monthly installments and $240 in device subsidies, for a grand total of $620. Again, that's exactly the full retail cost of an unlocked Galaxy S4 — but you don't get to keep that phone, even though you just paid full price for it. You have to trade it in to get a new phone — effectively giving AT&T a free GS4 to refurbish and resell to its next unwitting customer.
Now, you do get to keep your Next phone if you pay 20 monthly installments, which will cost you a whopping $1,040 if you assume a $20 subsidy: $640 in Next payments, plus $400 in subsidies built into your AT&T plan. That's $420 in pure profit for AT&T, which just made you pay full price for a phone while charging you inflated service prices that include a subsidy specifically designed to lower the upfront cost of that phone." Google "The Verge ATT Next Rip off"
I couldn't agree with you more. The fact is, ALL the phone companies are making you pay full price for the phone, while at the same time trying to make you lease the thing. They need to just admit that the days of subsidized phones are over, and that they're making you pay full price. Of course, they won't do that because then people will start looking for otherways to pay full price for the phone. Then there will be widespread competition, which non of the phone companies want.
Feldon
Well-known member
I too was confused. I just bought a Samsung Galaxy S5 and assumed that the 2 year contract is the same contract AT&T has had for a decade. It's not. 3 days after buying the phone, I got a text message from AT&T congratulating me on my new phone purchase and advising me that my bill would be increasing by ~$30 a month for the next 2 years. I guess sometime last year AT&T decided to stop subsidizing phones?
After an hour on the phone with India, we decided to switch to Next since for a few bucks more a month we'll be able to switch phones early. So we took the phones back to Best Buy and sat through a 2 1/2 hour process of them fiddling in the computer, refunding our phones, getting everything turned off, switching back to our old phones, switching back to the new phones, getting put onto the Next plan and then rebuying the phones at the new price ($58 sales tax rather than $199 down).
The Best Buy guy wasn't even sure if he'd be able to use these phones or if Best Buy would have to do a full refund and mail them back to Samsung while giving us new-in-box phones. Plus InvisibleShield would have gotten screwed in the process as we'd already applied their Glass screen protectors. Fortunately, the Best Buy guy was a wiz on the computer and found out how to work around all this horse**** and was able to redeploy our phones with new sim cards and on the Next plan. Suffice it to say I have a lot more respect for the guys at Best Buy. Meanwhile AT&T can stuff it!!
So anyway...Here are your AT&T choices now:
- Next 12 (actually a 20 month lease, tradeable after 12 months)
- Divides the regular price of your smartphone into 20 low monthly installments. Trade in your qualified smartphone to upgrade after 12 installments. Pay $34.95/mo for a $699 phone, plus sales tax up front (~$58).[/*]
- Next 18 (actually a 24 month lease, tradeable after 18 months)
- Divides the regular price of your smartphone into 24 low monthly installments. Trade in your qualified smartphone to upgrade after 18 installments. Pay $29.13/mo for a $699 phone, plus sales tax up front (~$58)[/*]
- 2 Year "Contract" (really Rent-to-Own for 24 months)
- Pay $199 up front for a $699 phone, plus $25 a month for 24 months.[/*]
The best cost savings is the 2-year contract because, after 2 years, you can trade in that phone to Best Buy or sell on eBay and use that $200 to cover the cost of getting into the new contract. The main thing to realize here is, There is NO WAY to buy a SUBSIDIZED phone from AT&T anymore. It does not exist. You can Lease or Rent-to-Own, but no matter what, you WILL pay the full price of the phone over 2 years (or less).
I asked a Samsung rep wtf is going on and they said that it's because people were finding a homeless person, sending them to an AT&T store or other retailer to buy these subsidized phones, then swap the SIM card and AT&T gets to eat the $499 subsidy cost. This was happening on the order of thousands of phones. That plus "contractless" marketing pressure from T-Mobile and Verizon forced them to say screw it and just eliminate subsidies.
Last edited:
Similar threads
Trending Posts
-
Question Bought an "unlocked" phone, it was network locked, is there any way to unlock it?
- Started by Chwoka
- Replies: 2
-
-
-
-
Question Need help, not receiving software updates in new s24 plus phone
- Started by J0SH
- Replies: 36
Facebook
Twitter
Instagram