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How do the access charge discounts work?

Miembro

I'm about to upgrade my daughter's iPhone 5S to the iPhone SE.  The first (and default) choice is to pay $16.66 per month to buy the phone in installments.  I understand the access charge in that case is $20 per month, so my total monthly charge would be $36.66 per month.  The second option is to commit to a two-year contract and pay only 99 cents for the phone.  But I also understand that, in that case, the monthly access charge goes up to $40.  The two-year cost of the first option is ($16.66 X 24) + ($20 X 24) = 879.84, while the two-year cost of the second option is $0.99 + ($40 X 24) = $960.99.  Do I have that right?  If so, who would anyone ever choose the second option?

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Re: How do the access charge discounts work?

Expert

You have that right. Some people only think about the cost they pay "today" and not the overall cost of ownership over the two years. Don't forget about the $20 upgrade fee that you pay either way.

I'm most definitely NOT a VZW employee. If a post answered your question, please mark it as the answer.

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Re: How do the access charge discounts work?

Miembro

But the first option is less money than the second IN EVERY SINGLE MONTH.  Including the $20 "activation fee", the first option costs $56.66 the first month and $36.66 every month thereafter, while the second option costs $60.99 the first month and $40 every month after.

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Re: How do the access charge discounts work?

Expert

Then choose the Device Payment Plan option to purchase the phone. That is the lowest two year ownership cost of the device.

I'm most definitely NOT a VZW employee. If a post answered your question, please mark it as the answer.

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Re: How do the access charge discounts work?

Líder Sénior

You would be surprised at people's comprehension of basic math!  Many here really believe they are getting an iPhone for 99 cents and feel like we are trying to trick them when told it is a bad deal. 

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Re: How do the access charge discounts work?

Asistencia al cliente

MicBruise, you made a very valid observations. My community members are on point with their explanations. Depending on the phone and it's overall costs the device payment plan usually saves you money. Some people still do 2- year upgrades just because it costs less upfront. With device payments you do have to pay the sales tax on the full retail price of the phone depending on the state in which you reside.


Please let us know if you have additional questions.



MarcusS_VZW
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