what's the difference between paying full price and using Device Payment Plan?

[KiwiCoalBattery]

Let's say a phone is $720. With Device Payment Plan, it is $30 per month.
Since there's no interest, at the end of 24 months, the total is the also $720.
(full sales tax is paid at time of purchase in both cases)

I have been with Verizon for a very long time and have not plans to switch.
I couldn't even if I wanted to because AT&T and T-Mobile has very bad to
zero signals in my area.

What's the real difference between paying $720 now or spreading it out
over 24 months with no interest? There's gotta be a catch, right? Why
else does Verizon let me pay for something and not charge me interest?

 

[dpham00]

Well Verizon does it so it locks you into a device payment plan for 2 years... If you leave early then you would have to pay off the balance... Similar point as etf... To help keep people on Verizon.

Sent from my Verizon Samsung Galaxy Note 5

 

[Almeuit]

Well Verizon does it so it locks you into a device payment plan for 2 years... If you leave early then you would have to pay off the balance... Similar point as etf... To help keep people on Verizon.

Sent from my Verizon Samsung Galaxy Note 5

This.

It is no different than 0% interest from stores or places like Amazon, Newegg, Apple, etc. More people will buy if you help finance it so they can pay a little each month versus walking in and dropping $700 down right there.

 

[KiwiCoalBattery]

This.

It is no different than 0% interest from stores or places like Amazon, Newegg, Apple, etc. More people will buy if you help finance it so they can pay a little each month versus walking in and dropping $700 down right there.

So Device Payment Plan is more of a marketing tool to get people to buy phones, even if they don't have $720 on hand?

If I do have $700 cash in my pocket, should I just pay the $720 up front? Or should I stash the $720 somewhere and pay Verizon only $30 a month? Oh wait... scratch that idea... better just pay the whole thing right now. I know me and I'll probably just spend the $720 on booze/hookers/strippers or an trip to Colorado to study some leafy green plants.

 

[Almeuit]

So Device Payment Plan is more of a marketing tool to get people to buy phones, even if they don't have $720 on hand?

If I do have $700 cash in my pocket, should I just pay the $720 up front? Or should I stash the $720 somewhere and pay Verizon only $30 a month? Oh wait... scratch that idea... better just pay the whole thing right now. I know me and I'll probably just spend the $720 on booze/hookers/strippers or an trip to Colorado to study some leafy green plants.

If you're able to I would say just pay it off. I always buy mine in full .. Or if I don't I do the $0 down and pay like $200-300 a month so I have it paid off quick. You can't do this with Verizon sadly.

 

[dpham00]

So Device Payment Plan is more of a marketing tool to get people to buy phones, even if they don't have $720 on hand?

If I do have $700 cash in my pocket, should I just pay the $720 up front? Or should I stash the $720 somewhere and pay Verizon only $30 a month? Oh wait... scratch that idea... better just pay the whole thing right now. I know me and I'll probably just spend the $720 on booze/hookers/strippers or an trip to Colorado to study some leafy green plants.

It depends on the situation... For example the Verizon Samsung Galaxy Note 5 was $233 with device payment plan after promotions ... Or $696 at full retail.

there are usually more promotions for the device payment plan.

Also keep in mind that if you have the nationwide or America's choice or some other legacy plans, then you would not be able to buy a subsidized phone until you pay off the dpp balance.

Sent from my Verizon Samsung Galaxy Note 5

 

[dpham00]

This.

It is no different than 0% interest from stores or places like Amazon, Newegg, Apple, etc. More people will buy if you help finance it so they can pay a little each month versus walking in and dropping $700 down right there.

Many people don't think things through... Oh it is just $30/mo... They don't fully comprehend what that actually means. That's why Verizon advertises the monthly payment price in bold and the retail price is in the fine print...

Sent from my Verizon Samsung Galaxy Note 5

 

[hal1]

No difference. It's just two years are free financing. Has nothing to do with locking you in for 2 years, because one way or the other you're responsible for the full price of the phone. I believe You can even pay it off earlier if you want.

Unfortunately, we're use to getting our phones for next to nothing for the past 10 years, that's the only reason this seems so high

Posted via the Android Central App

 

[KiwiCoalBattery]

Many people don't think things through... Oh it is just $30/mo... They don't fully comprehend what that actually means. That's why Verizon advertises the monthly payment price in bold and the retail price is in the fine print...

Sent from my Verizon Samsung Galaxy Note 5

so it's kind of like the US debt of over 18 trillion..($18,000,000,000,000)
which looks bad on paper.but hey, we only have to pay back 10 billion per
month.($10,000,000,000), so that's doable.

 

[dpham00]

No difference. It's just two years are free financing. Has nothing to do with locking you in for 2 years, because one way or the other you're responsible for the full price of the phone. I believe You can even pay it off earlier if you want.

Unfortunately, we're use to getting our phones for next to nothing for the past 10 years, that's the only reason this seems so high

Posted via the Android Central App

Respectfully, I disagree. Say you buy an iPhone for $200 on contract. You want to leave 2 months later you gotta pay $350 etf. Now you buy it on dpp for 0 deposit, then in 2 months you gotta pay $600, the balance of the dpp, to leave.

Obviously those with enough cash to float it don't really care....but for those who are paycheck to paycheck, paying off the balance of the dpp or etf can be a difficulty.

Sent from my Verizon Samsung Galaxy Note 5

 

[Cwey55]

No difference. It's just two years are free financing. Has nothing to do with locking you in for 2 years, because one way or the other you're responsible for the full price of the phone. I believe You can even pay it off earlier if you want.

Unfortunately, we're use to getting our phones for next to nothing for the past 10 years, that's the only reason this seems so high

Posted via the Android Central App

You cannot pay it off early by just making an extra payment whenever you want here or there. It's pay the monthly payments or pay the entire thing off, no in between. That's the only problem I have been dealing with.

Posted via the Android Central App

 

[dpham00]

You cannot pay it off early by just making an extra payment whenever you want here or there. It's pay the monthly payments or pay the entire thing off, no in between. That's the only problem I have been dealing with.

Posted via the Android Central App

Right. This is where Verizon gets some people who wish to pay a little more but don't have enough to pay off the entire balance...they are stuck with Verizon until the balance is paid off.

Sent from my Verizon Samsung Galaxy Note 5

 

[cbeattie411]

so your saying people aren't responsible enough to just tuck away the extra they want to pay? stash it until you can pay it off. your current plan should decide how you obtain your new phone. if your on and old 6gb or higher plan it's stupid to pay off early. as Verizon pays 25 each month. if your on the new Verizon plan it's your choice to pay full retail or dp. same money.

Posted via the Android Central App

 

[teejay69]

I get a Note 5 from Sprint normal 2 year deal, or I lease it for a year, or I buy in installments, or I buy it outright. Bottom line, how does it affect my monthly payment in each case? That's all I want to know, does the monthly service charge change. That's the only thing we should be looking at!

Posted via the Android Central App

 

[KiwiCoalBattery]

so your saying people aren't responsible enough to just tuck away the extra they want to pay? stash it until you can pay it off. your current plan should decide how you obtain your new phone. if your on and old 6gb or higher plan it's stupid to pay off early. as Verizon pays 25 each month. if your on the new Verizon plan it's your choice to pay full retail or dp. same money.

Posted via the Android Central App

like others have said, Verizon frequently has big discounts on new smartphones, but ONLY if you buy the phone with a Device Payment Plan. Even when I have the cash($700 or so), I still sign up for a Device Payment Plan... then I guess i'll just pay off the whole balance later on.

 

[gerrya]

I am currently getting the $25 monthly credit for being month to month on the More Everything plan, if I buy a device at full price I would continue getting the discount, would I still get it if I use the device payment plan?

 

[SandersJC1964]

Yes

Posted via the Android Central App

 

[JnEricsonx]

And this is why unless I can say get a phone at Best Buy at a subsidized price and keep my UDP, screw it, I'd be better off getting a Note 4 on swappa. Right now its still going for like 300 at BB, when for not much more on swappa, I could probably get one+extras!

 

[sulla1965]

No difference whatsoever. You are buying it full retail, Verizon is simply let you pay it off over time. But the phone is now yours. If you leave Verizon, the full amount becomes due. Your not "locked in" as you've already bought the phone and can simply leave anytime by paying the balance. 0% just makes it easier to buy anything. That's why many customers like it and use financing.