Correct answers
camerams wrote:
Verizon is not clear about much. The new plans - they include the cost of whatever plan you choose plus line access fees of either $20 if you are no longer on contract, or $40 if you remain on contract (until your contract is completed). Phones - they say you are buying the phone but, in actuality, you don't really own it until after 2 years. You are making monthly payments on the phones and you must pay off the entire amount if you choose to leave Verizon. That can be a lot of money.
Of course you don't own it until you make all the payments, you expected something different? And that "lot of money" is simply the total cost of the phone.
camerams wrote:
What I have said to the Verizon reps is that you're leasing the phones, just like you're leasing a car. They told me, no, you own it. But, you really don't. As far as I can tell, you're leasing it.
In this case, the Verizon rep is correct. When leasing a car, you return it after the lease is over UNLESS you want to pay a large balloon payment or ADDITIONAL payments in order to keep it. You get to keep your phone after you complete your payments with no additional payments. BIG difference. You are not leasing the phone, you are buying it.
camerams wrote:
It's not like buying a discounted phone on a two year contract; that phone is paid in full and belongs to you. Just make sure you pin someone down about that. So, you can leave Verizon at any time because you have no contract, but you still owe them the money for the phone. There is also an activation fee (though they sometimes waive that). If you own your phone, you can leave Verizon whenever you want. I don't know what the line access fee is if you buy your phone somewhere else and pay in full. Verizon doesn't want you to do that buy, in the long run, it's less expensive.
Don't forget the ETF on that phone if you choose to leave Verizon. If you plan to purchase on contract, the below table shows it is cheaper if you plan to leave Verizon during the 1st 4 months of your contract, the same after the 5th month and more expensive after that. So if you think there is a chance you will be leaving Verizon during the 1st 5 months of your contract it may benefit you to purchase on contract. Of course, it may be BEST if you left Verizon before signing that contract in the first place.
In the "long run" if you plan to stay with Verizon AND switch to the Verizon Plan, it is cheaper to purchase the phone on payments rather than on contract.
camerams wrote:
The difference is that you are paying Verizon directly for the phone (not a bank, and it decreases in value over time).
Meaning what? What do I care WHO I am making payments to. Does the $27 I am paying change in value whether it is a band or Verizon? Yes, it decreases in value over time as does a car, etc... The contract phone decreases in value over time, too.
camerams wrote:
It's not that it's necessarily a bad deal, it costs the same as buying the phone outright from what I can see and, unless things have changed, if you want to to upgrade through Verizon you still pay *upgrade* and *activation* fees to that after 2 years. I'm not a fan of purchasing a phone on contract.
Yes, purchasing the phone on the payment plan cost the exact same as purchasing the phone outright except you hold on to your money for a longer period of time and it takes Verizon longer to get ahold of your money.
camerams wrote:
The bottom line is that, I believe, Verizon is being intentionally confusing about plans and fees. The cost of phones is pretty straightforward. Your chart is excellent. If you are planning to buy a new phone (like the new iPhone, when it comes out) you're probably best off bringing you own phone or purchasing a phone on eBay if you are a new customer. Otherwise, you will be locked into paying for your phone in full.
Not really sure what the difference is in purchasing the phone from Verizon or some other place. Yes, you may be able to get a used model somewhere for less money but NEW phones, especially when first released will be fairly close in price, if not the same, whether you purchase from ebay, bestbuy, or wherever.
Not sure what the point of being "locked in" to paying for your phone if full, either. If you purchase it outright at Verizon or somewhere else you have ALREADY paid for the phone in full and therefore were "locked in" to paying for the phone in full already.