Cost of ownership: Retail vs Subsidized vs Edge vs Moto credit

[gmermel]

I hope this helps people wondering how best to procure the phone. It's particularly relevant to those VZW folks concerned about when/if the phone will be released by the carrier.

Purchasing the Nexus 6 @ Retail or on an Edge contract saves you $200 vs getting it on a subsidized contract. Edge reduces your up-front cost, but requires a contract. Moto credit eliminates the up-front cost of retail purchase, and lets you retain the advantage of being off contract.

Retail purchase and Edge contract (for a 10gb or greater plan carries a discounted monthly service cost of $15/month vs $40 on contract/subsidized. After 24 months, cost of ownership is:

$650 + $360 (=$15 x 24) = $1010
if you buy at retail, your monthly payment is $15, off contract
If you buy on Edge, your monthly payment is $41 = $15 + 26 (=$650/24), on contract

Subsidized cost of the phone is $250. You do not get the discounted service fee. Cost of ownership is:

$250 + $960 = $1210
Monthly payment $40, on contract

Buying the phone from Moto and using their interest free financing combines the cost benefits of Retail and Edge, spreads the cost of the phone out over time, and does not require a contract:

=$1010
Monthly payment of $58 = $15 + $43 (=$650/15), off contract.

 

[Sweet Pikake]

You have to add taxes n fees on the subsidized phone, depending on the state, could be anywhere from 17-25%

 

[anon(5506951)]

You have to add taxes n fees on the subsidized phone, depending on the state, could be anywhere from 17-25%

Here in NY, it's 8.875%, so it's $51 for the 32 GB and $62 for the 64 GB, when bought outright, of course.

Posted via the Android Central App

 

[Sweet Pikake]

http://taxfoundation.org/article/wireless-taxation-united-states-2014

 

[Sweet Pikake]

Combined Fed, State, Local rates
HI 13.35%, NY 23.67%

 

[gmermel]

Here in NY, it's 8.875%, so it's $51 for the 32 GB and $62 for the 64 GB, when bought outright, of course.

Posted via the Android Central App

Taxes should be the same no matter how you get the phone.

 

[Sweet Pikake]

every state has a different sales tax rates.

 

[gmermel]

every state has a different sales tax rates.

Yeah. My point, poorly stated, is that when an individual goes out and gets the phone, he'll pay the same tax no matter what route he takes. For that person, taxes don't impact the cost of ownership.