Isn't VZW's 2-year requirement on Device Payment Plan essentially a 2-year contract? ($300 trade-in)

[LailaAK]

Isn't VZW's 2-year requirement on Device Payment Plan essentially a 2-yr contract?

Some of Verizon's current Device Payment Plan promos require customers to keep the plan active for 24 months in order to receive the full value of the promo. For example, to get a $300 trade-in credit, you have to stay with them for 24 months because the entire $300 promo is divided into 24 equal account credits to be applied each month. If you leave, they claw the promo back and make the customer pay the difference. (making the promo useless)

Correct me if I'm wrong, doesn't that make the DPP essentially a 2-year contract just like in the old days?

 

[Aquila]

Losing a credit and paying a penalty aren't the same thing legally, despite being very similar mathematically. So yes, but no.

 

[dpham00]

Isn't VZW's 2-year requirement on Device Payment Plan essentially a 2-yr contract?

Some of Verizon's current Device Payment Plan promos require customers to keep the plan active for 24 months in order to receive the full value of the promo. For example, to get a $300 trade-in credit, you have to stay with them for 24 months because the entire $300 promo is divided into 24 equal account credits to be applied each month. If you leave, they claw the promo back and make the customer pay the difference. (making the promo useless)

Correct me if I'm wrong, doesn't that make the DPP essentially a 2-year contract just like in the old days?

Device payment plan is an installment contract. This is what Verizon officially calls when you sign the dpp agreement. You agree to pay for 24 months or should you leave early then you must pay off the entire balance, which may exceed $900


Trade in promotion would in essence be a trade in contract since it requires a full 24 months to get the whole trade in value.

The old contracts are considered service contracts. You get the phone at a discounted price upfront and promise to keep service for 24 months, or agree to pay etf up to $350 should you leave early.


They are all deterrents for leaving the Carrier early.

 

[Mooncatt]

I think the biggest thing that separates DPP from traditional 2-year contracts is once the phone is paid off, your bill goes down (disregarding any promotional catches). With the old 2-year plans, the price stayed the same even after the contract was satisfied and the phone effectively paid off. It made about as much sense as paying off your car loan but continuing to send the bank payments, and is probably part of why phones became so "disposable". Upgrades were almost forced because they didn't offer discounts for phones being paid off.

 

[LailaAK]

Trade in promotion would in essence be a trade in contract since it requires a full 24 months to get the whole trade in value.

was doing a $300 minimum trade-in promo thing that required DPP. $300 trade-in credit will show up as 24 equal credits. A pop-up box said I must agree to remain on DPP for 24 month. If I pay off DPP remaining balance, I forfeit all remaining trade-in credit. To me, that's an evil way to force people to remain on DPP for 24 months, no?

 

[dpham00]

I think the biggest thing that separates DPP from traditional 2-year contracts is once the phone is paid off, your bill goes down (disregarding any promotional catches). With the old 2-year plans, the price stayed the same even after the contract was satisfied and the phone effectively paid off. It made about as much sense as paying off your car loan but continuing to send the bank payments, and is probably part of why phones became so "disposable". Upgrades were almost forced because they didn't offer discounts for phones being paid off.

Actually on some plans with the tiered line access charge for using dpp or contract, once you go off contract,your price can go up to the same as being on contract. Because the drop in price was considered a discount,which is now removed since it isn't a current plan anymore.

 

[dpham00]

was doing a $300 minimum trade-in promo thing that required DPP. $300 trade-in credit will show up as 24 equal credits. A pop-up box said I must agree to remain on DPP for 24 month. If I pay off DPP remaining balance, I forfeit all remaining trade-in credit. To me, that's an evil way to force people to remain on DPP for 24 months, no?

Yes. I certainly wouldn't do it for a lousy $300 credit,but getting $650 for a iphone 6 16gb is a good deal,imo,so long as you remain with the carrier for 2 years.

 

[Mooncatt]

Actually on some plans with the tiered line access charge for using dpp or contract, once you go off contract,your price can go up to the same as being on contract. Because the drop in price was considered a discount,which is now removed since it isn't a current plan anymore.

I know they give a line access discount during DPP, but I've been able to get an equal discount for being paid off, keeping the line access lower. You do have to call in to get the discount, as it's not automatic.

 

[dpham00]

I know they give a line access discount during DPP, but I've been able to get an equal discount for being paid off, keeping the line access lower. You do have to call in to get the discount, as it's not automatic.

Since it is a discount,they can take it away at any time....

 

[Mooncatt]

Since it is a discount,they can take it away at any time....

Unfortunately true.

 

[benjamminh]

I got the discount for my wife just before they changed this, but I agree it was quite the machination to keep someone on Verizon.

 

[eshropshire]

I am a little confused when people now say they are eligible for an upgrade. Does that me they are eligible to buy a new phone and make device payments to Verizon? Are there still old plans where people can resign a two year deal and get a new device and have the cost buried in the Verizon contract? After looking over all the options of Verizon I choose their now plan and save almost $100 a month on 4 lines. I have one dpp that I will pay off soon. DPP was pretty good 18 months ago, but now I can't see any reason to use Verizon's DPP.

True this generally will keep my family away from having the latest and greatest phone when it comes out. If my kids want a better phone they are welcome to go and buy a phone. For me, I will upgrade when I feel like it and get off getting tied into payment plans that are worse than the old two year agreements.

 

[Aquila]

Yes there are still old plans out there with contracts and upgrades at contract prices. Nationwide Family Plan, etc.

 

[benjamminh]

If you're also getting a line discount plus a device discount the device payment plans can be quite a good deal. It's just too bad they're now splitting up those device discounts across the length of the device payment plan.

 

[eshropshire]

If you're also getting a line discount plus a device discount the device payment plans can be quite a good deal. It's just too bad they're now splitting up those device discounts across the length of the device payment plan.

I agree, the old plan with a dpp discount per line was nice. I do save quite a bit of money each month on the new plan and the roll over data is nice. But there are zero incentives to change devices. My kids now keep their phones until the phone dies or they decide to buy a new phone. One of my daughters bought a S5 off Swappa this summer for a great price and looks brand new.

I have a Note 4 and there is not a single phone on the market right now that I would consider.

 

[Joshua Luther2]

I'm wondering if it would be possible for me to get into a new phone. I still owe around $300 on dpp for an LG G4. Would there be a way for me to get a new phone and not have to pay the remaining balance off as long as I sign up for a new dpp? If I could do it, I would. I've already had one G4 bootloop on me and had Verizon replace it for me. But it would be nice to be able to get something newer and more reliable.

 

[11B1P]

....but now I can't see any reason to use Verizon's DPP.

I'm using a Nokia Lumia Icon now. But when the Black Friday deals open, I'm switching to a Samsung S7 for $10/mn for 24 months. I'm not planning on leaving Vzw in the next 2 yrs, so yeah, the DPP is worth it to me. I will get a $700 phone for $240

 

[tribbleorlfl]

Yes, it's frustrating as the whole move away from contract plans and subsidized phones was driven by consumer demands to increase freedom, choice, competition (and thereby prices for plans and phones). Breaking up promotional credits (be it trade-in value or promotional discounts) over the life of the DPP instead of simply lowering the cost of the device upfront shows the carriers (and VZW in particular) aren't interested in any of that.

So, yes, while your bill will go down once the device is paid off unlike traditional contract plans, DPP's and promotional credits are the new defacto 2 year contract.

 

[Ry]

Yes, it's frustrating as the whole move away from contract plans and subsidized phones was driven by consumer demands to increase freedom, choice, competition (and thereby prices for plans and phones). Breaking up promotional credits (be it trade-in value or promotional discounts) over the life of the DPP instead of simply lowering the cost of the device upfront shows the carriers (and VZW in particular) aren't interested in any of that.

So, yes, while your bill will go down once the device is paid off unlike traditional contract plans, DPP's and promotional credits are the new defacto 2 year contract.

At least it's more transparent now.

 

[anon(9733642)]

Won't go all crazy here but...it's the value of the trade that matters most. If you were to pay offer retail price of the new phone say during the first bill, you would still be owed a $300 credit. So you could keep that $300 credit at Verizon and apply it else where or port out and they would cut you a $300 check.

I learned this the hard way but it'd true. I traded a paid off and off contract iPhone 7. They gave me $650 for trade towards the Pixel making it free...per se. Regardless of why or how...I learned afterwards that it was actually going to be 24 months with a $27 credit.

So as I worked my way up and talked to different people I was told and got in an e-mailed PDF that if I paid off the retail amount or what was left at anytime I was still owed the $27 a month credit. If I'd like I could leave and port out and would be refunded the owed credit.

So if I paid $650 tomorrow, and ported out the next day they would cut me a check for the $650 in credit they owe me. It would take a month or two to sort out. But "technically" they are not breaking any type of laws.

It's simply a deterrent to pay off early as most people wouldn't want to pay up front and wait to get their money back. If they could do that they would have paid retail upfront. In my case I thought my even trade was same as cash...I learned it was, but over 24 months...lol...now. Wasn't laughing til I fully understood I have plenty of options.