Aflaaaak
Well-known member
- Jun 23, 2015
- 804
- 27
- 28
So, Verzion, ATT or T-mobile sell you the phone with zero interest out of the goodness of their hearts or because they love their customers?![]()
No, they do it because you sign a contract and over the two or three year period pay more for the services you receive than if you went to an MVNO that was using their towers. And yes the plans are the same with or without the sale of the phone, but the contract guarantees you are a customer for x-number of months and if broken, you pay to leave.
Although I am not going to research their rates, I'm sure they are making a lot more on the over charges than they would if they financed they phone. They are using their money to purchase the phones from the manufactures, thus they tying up their money for phones.
There is a reason people need to finance phones; no doubt. But even if Zero Interest, believe me, the carriers are making a profit on the sale of that phone to you because they only love your money and they have no hearts.
And yes, I know not all are in the position to purchase expensive phones outright. And all have the right to get an expensive phone if that is what they desire and that is what they can afford to pay over a contractual period of time. Not my place to say good or bad, just to say. not for me. Only contact I have is on a mortgage and that is for tax purposes more than anything else. (Showing my age, but I can remember when credit card interest, as well as interest from other "consumer loans" was tax deductible.)
Carriers used to give phones away for free, which is how I got my LG G4. I think phones are a Lost Leader for them. They don't need to make a profit on them because they do in signing you up and charging your monthly Service Fee and many other, Nickle and Dime, other charges. Financing a phone costs no more than paying for it up front. It's a nice option.