Need some upgrading advice

[the block]

Let me preface this with that I have been out of the mobile news game for a little while now. I'm not up on what the best phones are, or the pros and cons of these new tiered data plans or whatever this Verizon Edge thing is. I'm pretty sure Verizon is not out to be saving anyone any money, and there is probably lots of fine print and strings attached than what is advertised on the surface.

I have a Galaxy Nexus and my wife has a Droid 4, both on a grandfathered unlimited AC Family Shareplan 700. I'm due for an upgrade now, but am holding out to hang on to my unlimited plan as long as possible. My wife's is up 2/28/14 and she is ready to upgrade asap as she hates her Droid 4 as it is incredibly slow and still has nagging, annoying bugs. I did a factory reset on it a few weeks ago for her which has helped speed it up and made her a little happier, though she does not share the desire to keep unlimited as I do, if it means she has to hold onto her phone longer than necessary.

Now what is this Verizon Edge? They make you pay full retail price for a phone, split it up so you pay for it monthly for 24 months, and then after 6 months you can upgrade to a new phone? Do you have to trade in your 6 month old phone? Do you have to still keep paying months 7-24 of a phone you no longer have? Does the new phone just take over the old phone's payments? Do you instead start having to pay for 2 phones, only one of which is active? It is very confusing to me.

The only way I can see this Edge making sense is if you are able to just pay the subsidized price of a new phone after having your previous phone for at least 6 months. This way it is pretty much up to you when you want to upgrade (minimum 6 months per phone) so you don't have to wait 2 years, and only have to pay the $200-$300 subsidized price every time you upgrade to a new phone. I'm guessing it does not work this way though, as that would be too good? Since new generations of phones are so much better than the previous, and a lot better than 2 generations prior, I feel like whatever she upgrades to on 2/28/14 is going to be so much better than her Droid 4, that she'll be able to make it last 2 years, thus making this Edge plan irrelevant to her needs. Case in note, I'm still using my Galaxy Nexus two years after it came out. It was lightyears faster than my previous OG Droid where I could comfortably go another 2+ years, and I expect that will continue to be the case.

The last order of business is dealing with unlimited data. Is there no way to hold onto it now, or at least hold onto it on one of our 2 phones after upgrading? Maybe doing some trick with transferring upgrades or temporarily activating old phones or something? I feel like I've read about people juggling their devices around to somehow retain their unlimited data. If we can't hold onto unlimited data, does verizon throw grandfathered accounts a bone by offering them a tier of data at a better price that is not offered to new customers?

Thanks for reading my questions and concerns. I want to be educated and prepared before I go into battle against VZ.

 

[Golfdriver97]

As I understand it, Edge works like this: You get a new phone (say sake of argument an HTC One), part of the bill is the payment like you said. After 6 months, you turn in the HTC, and your obligation to fulfill the purchase is done, and you can choose another device (say the Moto X), you then start paying off the X.

As far as I understand keeping your unlimited, you need to buy a phone suitable for your network at full price, and switch it over.

 

[Golfdriver97]

I would wait until someone can confirm this or double check the info. Like I said, that is how I am understanding it.

 

[srkmagnus]

With Edge, you'll be able to get a new phone after the 6th month. You give back your old phone and start from month 0 with the new phone in terms of payments. The only requirement is that you need to have 50% of the retail price paid off before making the switch to the new device. You don't have to pay of the remaining months of the device and you start at month 0 with the new device.

Here is the AC blog post about Edge with other useful links: Verizon's new 'Edge' program allows no-contract upgrades every 6 months | Android Central

Regarding the unlimited plan, you'll have to find a way to not use the upgrade in order to keep unlimited data. The only way is to purchase a new or used phone off contract and activate the device to your account(s). Once you use the upgrade, Verizon will move you away from unlimited and onto their tiered plans. I don't think there is any other way to stay with unlimited.

 

[the block]

Thanks all for the info. I think our best bet is to just sign a 2 year contract w/ 2GB data and go from there. Maybe between now and the end of Feb, VZW will have another 'software malfunction' on their website that lets people upgrade while keeping unlimited. Wishful thinking never hurts. Thanks.

 

[DayThyme]

Thanks all for the info. I think our best bet is to just sign a 2 year contract w/ 2GB data and go from there. Maybe between now and the end of Feb, VZW will have another 'software malfunction' on their website that lets people upgrade while keeping unlimited. Wishful thinking never hurts. Thanks.

Add a line to your family plan and use it to transfer upgrades to it. You can use the upgrade/subsidized phone available on the added line to buy an iPhone and sell it to recoup the cost of the added line. There is a whole thread about this process on this forum.

http://forums.androidcentral.com/verizon/227608-instruction-how-keep-unlimited-data-verizon.html

 

[dpham00]

Add a line to your family plan and use it to transfer upgrades to it. You can use the upgrade/subsidized phone available on the added line to buy an iPhone and sell it to recoup the cost of the added line. There is a whole thread about this process on this forum.

http://forums.androidcentral.com/verizon/227608-instruction-how-keep-unlimited-data-verizon.html

Other option if you don't want to deal with selling would be to add a line with new phone, then transfer upgrade from unlimited line to the non unlimited line then cancel the new line after all is done and return the phone opened on the new line. You would have to pay $35 activation and $35 restocking fee though. Make sure to return within the return period. If bought now, you can return until 1/15. But normally return period is 14 days

Sent from my Verizon Samsung Galaxy Note 3 via Tapatalk Pro

 

[DayThyme]

You would have to pay $35 activation and $35 restocking fee though.

If you cancel the line within 3 days, no activation fee; just a restocking fee.

Return Policy & Termination Fee | Verizon Wireless

 

[dpham00]

If you cancel the line within 3 days, no activation fee; just a restocking fee.

Return Policy & Termination Fee | Verizon Wireless

True, but to add a line, wait a few days for the order to be finalized(so that you can transfer the upgrade to the new line) , then order a new phone online, receive and activate it, chances are that you would be past the 3 day mark on the original phone, which is why I didn't mention it.


If the first order finalizes early then it might work, but last time, it took about 4-5 days for me. Might be best to buy it early Tuesday morning in store, then as soon as the order finalizes, order online.

Sent from my Verizon Samsung Galaxy Note 3 via Tapatalk Pro

 

[tech_fan]

I did the Edge program about a week ago. Here is what I understood.

At the time of purchase, I paid the first months payment of about $30 and the tax on the phone. This came to about $80 due at the time I enrolled.

After having the phone for 6 months, I can trade up to another phone. They will then tell me what the payoff on the phone is which I calculated to be about $150. Or, I can wait until 12 months are up and then the payoff would be zero to upgrade. Basically, I have to pay at half of the phone's full retail to upgrade. Once I pay off half the phone, I can choose to Edge Up again or walk away from the Edge contract.

When I choose to upgrade or walk away from the Edge program, I have to surrender the phone. if I choose to upgrade once again, the old Edge program will end and a new Edge program will start and my monthly payment will be calculated by dividing the retail price of the phone into 24 monthly payments. Then I will make my first monthly payment and sales tax at the time of the upgrade.

To my knowledge, this program has gained in popularity. What will Verizon and others do with these phones once they are traded in for other phones? My feeling is that they will be sold or offered as an additional buying option. Either way, I think it will flood the market full of resale phones and those that are used to buying under contract and selling their phones after a year to help cover costs might find that the phones are not really worth anything after a year. This happened with the laptop market and computers in general.

 

[DayThyme]

What will Verizon and others do with these phones once they are traded in for other phones?

I would guess they will be refurbished and resold or used as Certified Like New Replacements.

 

[tech_fan]

I would guess they will be refurbished and resold or used as Certified Like New Replacements.

Yep and that is what I feel will increase competition in the resale market and drive down the cost of phones in the used marketplace. So, in a sense, the strategy of renewing the contract for 2 years in hopes of selling a phone after its a year old might backfire.

 

[DayThyme]

Yep and that is what I feel will increase competition in the resale market and drive down the cost of phones in the used marketplace. So, in a sense, the strategy of renewing the contract for 2 years in hopes of selling a phone after its a year old might backfire.

Let's do the math.

Bought a GNote3 for $200 + tax = $212 + $30 upgrade fee = $242. Use it for a year, and at current market prices net $300 when resell it (that is what a GNote2 in excellent condition will net right now so my assumption is that a year from now that is what a GNote3 will net).

So $300 - $242 = $58 profit on the transaction.

Buy a new GNote4 the next year for $700 + tax = $742. Cost of the GNote4 is $742 - $58 profit on the sale of the GNote3 = $684.

Thus, to get a new GNote3 and a new GNote4 would cost you $684. However, you still have the GNote4 to sell and assuming current market prices, you should be able to net $300 on that sale (assuming you keep it in excellent shape; obviously it would be less if you don't). So $684 - $300 = $384.

Over 24 months, that works out to be $384/24 = $16/mo, which is about half what the Edge program charges when you figure in the tax. So in the current market environment, you would be better off by half to stick with subsidized phones and still get a new phone each year. Of course, I am assuming you keep your phone in excellent condition and that the resale value a year from now for a 1 year old Note is the same as it currently is.

So the Edge program is nice if you wouldn't sell your phone on your own, or don't want to try to keep your phone in excellent condition, but you pay for that convenience, which is how things always work. Only time will tell if these programs knock down the resale value of these phones.

BTW - what happens if you ding up your phone on the Edge program? Can you pay off 50% of the value and still upgrade if you are giving them back a damaged phone? What about one that works but is cosmetically damaged?

 

[tech_fan]

Wow, your tax rate out there is low. Mine is close to 10%. I thought the device was $300 when you upgrade a line. Or at least it was when I was in the store. Therefore, the out of pocket cost when you upgrade the line would be close to $410. At any rate, I do not plan on keeping my phone past a year and if something better comes out in 6 months, I will want to upgrade. The additional cost does not bother me that much. Technology and innovation has always been my weak side. Therefore, the Edge program makes sense for me. It will not make sense for my wife because she likes to keep her phone until it no longer works.

Let's do the math.

Bought a GNote3 for $200 + tax = $212 + $30 upgrade fee = $242. Use it for a year, and at current market prices net $300 when resell it (that is what a GNote2 in excellent condition will net right now so my assumption is that a year from now that is what a GNote3 will net).

So $300 - $242 = $58 profit on the transaction.

Buy a new GNote4 the next year for $700 + tax = $742. Cost of the GNote4 is $742 - $58 profit on the sale of the GNote3 = $684.

Thus, to get a new GNote3 and a new GNote4 would cost you $684. However, you still have the GNote4 to sell and assuming current market prices, you should be able to net $300 on that sale (assuming you keep it in excellent shape; obviously it would be less if you don't). So $684 - $300 = $384.

Over 24 months, that works out to be $384/24 = $16/mo, which is about half what the Edge program charges when you figure in the tax. So in the current market environment, you would be better off by half to stick with subsidized phones and still get a new phone each year. Of course, I am assuming you keep your phone in excellent condition and that the resale value a year from now for a 1 year old Note is the same as it currently is.

So the Edge program is nice if you wouldn't sell your phone on your own, or don't want to try to keep your phone in excellent condition, but you pay for that convenience, which is how things always work. Only time will tell if these programs knock down the resale value of these phones.

BTW - what happens if you ding up your phone on the Edge program? Can you pay off 50% of the value and still upgrade if you are giving them back a damaged phone? What about one that works but is cosmetically damaged?

 

[DayThyme]

Wow, your tax rate out there is low. Mine is close to 10%.

6%, so yeah, if your sales tax is that high, then the math would be different. But you can buy from Amazon or other online retailers and avoid the tax many times.

I thought the device was $300 when you upgrade a line. Or at least it was when I was in the store.

Verizon had it at $200 from Thanksgiving through the weekend after. Best Buy and Amazon have it for $200 right now. And if you had signed up for the Best Buy $50 gift card in February, you could get it for $150 at Best Buy right now. But again, paying attention to sales and gift card offers takes time, and if you don't have the time, you can pay more for convenience. That's how it always works. Those of us who are on the look out for deals all the time will fair well, but it comes at the cost of our time. People not willing to look for deals all the time will have to pay more for that luxury.

Oh and did I mention that I bought the GNote3 through the comcast $200 VISA prepaid promo so not only did I only pay $242 for it, I will get a $200 VISA gift card so it comes to $42 Thanks dpham00 for the heads up on that deal!!!!

It will not make sense for my wife because she likes to keep her phone until it no longer works.

I used to be like that, too, lol! But the swift pace of technological advances in smartphones caused me to change my ways.

 

[dpham00]

I bought my Note 2 for $37 in February, first Note 3 on release day for $90, and second Note 3 for free on black friday weekend. But for comparison, I will assume a $100 Note contract phone cost, which is a sale price for Note, but imo, if I was able to do it 3 times in a year, then it would be possible for others to do it as well. I will also assume that you do not want to sell the phone to a private party, but will use trade in value, which would be much lower. Note that with the Edge program, after two years, you would still owe $350 on the phone, if you decide not to edge up, then you will continue paying off that $350. Whereas with the contract/etf method, you are free of any commitments to Verizon after 2 years.

Use upgrade on line (1st year)
$100 Contract phone cost
$30 upgrade fee

Open new line of service
$100Contract phone cost
$35activation fee
$350etf
$3 1 days service

-$150Sell first phone after a year through trade in (Gazelle or similar)
-$150Sell second phone after a year through trade in (Gazelle or similar)
$318Total cost (excluding tax) for 2 phones using the contract/etf method

$700 Cost of Edge phone (pay 50% after a year, twice)

Additional cost of Edge: $382

Now obviously, for those who want the easy road, yes, Edge is convenient. Just realize that you could be getting a better deal. The choice is yours to make.






Sent from my Verizon Samsung Galaxy Note 3 via Tapatalk Pro

 

[DayThyme]

first Note 3 on release day for $90

What was this deal?

Note that with the Edge program, after two years, you would still owe $350 on the phone

Wait, I thought with paying $29 a month for 24 months under the Edge plan, it would be paid off in 24 months. No?

 

[tech_fan]

What was this deal?


Wait, I thought with paying $29 a month for 24 months under the Edge plan, it would be paid off in 24 months. No?

Yes, after 24 months of payment of 29 per month, the device would be paid for in full and the device is yours to keep.

After paying off half of the device, you can surrender the phone and walk away from the Edge contract or Edge Up to a new device. Paying for half the phone would equate to $300 which is what you would pay initially to start a new 2 year contract.

 

[DayThyme]

Paying for half the phone would equate to $300 which is what you would pay initially to start a new 2 year contract.

half of a GNote3 is $350 since they retail for $700. But on contract, you have to pay the upgrade fee which would bring the device to $330. This is if you buy from verizon right now. Best Buy and Amazon have it for less right now.

 

[dpham00]

What was this deal?

http://forums.androidcentral.com/sa...zon-note-3-90-contract-store-pickup-ymmv.html

Sent from my Verizon Samsung Galaxy Note 3 via Tapatalk Pro