Think about it this way. You sign a new contract, get the phone for 249 and sign up for the replacement program. In six months, you return it to best buy and get half retail price (300) as a gift card. You can then get a new phone off contract (600) but you have a gift card which will knock it down to 300, roughly the same as contract price. You can repeat this every six months.
Pretty much it's ideal for those who like to have the newest thing, and have the money to pay about contract price for a phone every six months.
Even better would be to sign a one.year contract at Verizon and get the.phone from them. Sell it on eBay or something, use the money to go towards a retail price phone at best buy. Then do the process I listed above all the same. Except, in six months, you get a new phone at contract price, and six months from then, your contract is up and you can get a new phone essentially for free, by renewing your one year at Verizon, selling the phone you get, and returning your other phone that you got from best buy to them for half retail. Combined, enough to get a new phone from best buy essentially for free and start the process over.
Involved, I know. But its my diabolical plan to always have the hottest android device on Verizon without breaking the bank.
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