In other words, is the plan change linked to the 2 year contract agreement? I am almost 3 years into a 2-yr contract agreement. I didn't upgrade because I wanted to wait until this fall and get a new iPhone and get it at the 2-year contract rate (since I've been paying more for the plan in anticipation of utilizing the benefit). However, I am needing more data so I called Verizon and the Verizon agent says my contract agreement and phone upgrade would not be affected by changing from more everything plan to the "New Verizon plan". I am skeptical. Anyone made the switch? If so, what happened with your ability to get a new phone at subsidized price?
That is a great question. We know you are looking for the best deals and options for your account. To clarify, we do not offer 2 yr prices on any of our devices at this time. You have the option of getting a device payment plan to upgrade to a device. What device would you like to upgrade to?
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Except for certain government/enterprise accounts, Verizon no longer offers a "discounted" contract phone purchase.
I'm not sure you realize this, but that "discounted" contract phone actually ends up costing you MORE than if you were to purchase the phone on the payment plan. When you make that "discounted" phone purchase, you end up paying an inflated line access fee($40) for the duration of your service contract. If you are on the More Everything Plan and are currently paying a $40 line access fee when you are no longer under contract, you should IMMEDIATELY call CS to see if you can add the month-to-month discount to your line. This would drop your line access fee by either $15 or $25 depending on your monthly data allowance. If you are unable to have this discount added, you can drop your line access fee by $20 simply by switching to the Verizon Plan.
Purchasing that "discounted" contract phone is not a bargain. You would pay LESS each month simply by purchasing the phone on payments if you make a down payments on your phone equal to the amount you pay for that "discounted" phone.
For example, if you pay $200 for your "discounted" iPhone, you will ALSO be paying a $40 line access fee for 2 years.
If you were instead pay that SAME $200 as a down payment on your phone purchased on payments, your line access fee($20) PLUS the monthly phone payment(($650-$200)/24 = $18.75) would end up being LESS than just your monthly line access fee when purchasing your "discounted" phone. That means you would be paying $38.75(line access fee PLUS monthly phone payment) instead of $40(line access fee only) if you purchase your phone on the payment plan if you switch to the Verizon Plan.
It is better to check the numbers because you don't save any money by purchasing that "discounted" contract phone.
Thanks for your reply. I do realize exactly what you're saying which is at the crux of my question. I have spent the last 2 years paying that $40 for the promise of that discounted phone and now that I'm finally through that contract suddenly it seems that I don't get to get the reward of the "contract price phone." and so I've been paying all that extra for nothing. What is interesting is that on my current plan, if I click to upgrade my phone, I am offered a "2-yr contract" price of $200 for an iPhone 7. So contrary to what is stated by Verizon above and on the phone, it seems that I can get my next phone at a discount. So with the next iphone coming out in the next 2 months I would hate to switch to a new plan that would remove that "contract price" option that I see available to me now. So, that's why I'm wondering if I were to switch to the new verizon plan (which you point out would definitely save me money over time) if that would null and void that "contract" upgrade option that is available to me online. Because if it does get rid of it, I might as well hold out for 2 more months rather than throw away all of that extra money spent in the 2 year contract just to get the phone deal.
When I click on upgrade my phone it offers me a 2 year contract price of $200 for an iPhone 7 so I'm not sure this information is entirely correct. I know it is true that no NEW 2 year contract offers exist, but for me (at least online) it appears that I am able to get at least one final subsidized phone price. (Which would seem entirely fair since I've been paying a higher line fee for the past 2+ years for the new every 2 deal).
I think you misunderstand what a contract is. You were paying $40 a month to pay for THAT phone. There was no future promises.
Since no carrier offers contracts anymore, Verizon is keeping up with the times. In many cases, the retail price is cheaper than the contract was. you might want to price the plans again based on having to buy your phone separately
$200 up front and an extra $20 per month, $680, plus you pay higher taxes based on the $40 line fee, rather than the current $20 line fee.
Thanks for your reply. I do realize exactly what you're saying which is at the crux of my question.
If you think you are getting that $200 contract iPhone at a "discount" then no you don't realize what I am saying. I am saying you get a BIGGER discount by purchasing the phone at full price on payments. The total amount of the payments is LESS than the amount you will pay for your contract phone PLUS the added cost of the line access fee for entering into that contract. I am saying you will pay LESS if you don't purchase that phone on contract.
When purchasing a phone on payments the discount on the More Everything Plan depends on your monthly data allowance. If it is less than 6 GB/month, you get a $15 discount on the line access fee. If it is 6 GB or more, you get a $25 discount on the line access fee.
That $200 iPhone has a retail price of $650, so you are getting a $450 "discount" on the phone and instead are paying $20 EXTRA for your line access fee for the next 24 months or $480 EXTRA on your line access fee for that $450 discount on the price of your phone. So you end up paying $680 instead of $650 for that phone by getting your "discount".
If you have a 6 GB/month or more data allowance and purchase the phone on payments, you have 2 options for your purchase. You can take that $200 you would have paid for your contract phone and use it as a down payment on your payment plan. That would leave you with a $450 balance which would work out to monthly payments of $18.75. When you take your $40 line access fee and subtract the $25 discount and then add your monthly phone payment, your monthly cost is $33.75 instead of the $40/month you would be paying when purchasing that contract phone at a "discount". That is $6.25/month LESS by paying full price for the phone instead of the "discounted" contract phone. Let's add the discount up with a 6 GB/month or more data allowance. $25/month line access fee discount x 24 = $600 discount instead of the $450 discount you get for signing that contract. If you have LESS than a 6 GB/month data allowance, the savings is not as great with only a $15/month($15 x 24 = $360 total discount) line access fee discount and you would be better to switch to the Verizon Plan with a $20 line access fee discount on your $40 line access fee($20 x 24 = $480 total discount). Of course, with the Verizon Plan they don't call it a "discount". The line access fee is just $20/month with a $20 fee tacked on if you are under a service contract. Unlike the More Everything Plan, the line access fee will automatically drop to $20 once you complete your contract on the Verizon Plan where it will continue at $40 with the More Everything Plan unless you can somehow get the discontinued month to month discount added to your account.
Additionally, you are paying DOUBLE the taxes on your line access fee of $40 instead of the $20 line access fee on the More Everything/Verizon Plan if you pay for the phone with payments
Good luck with whichever decision you choose to make.
I have spent the last 2 years paying that $40 for the promise of that discounted phone and now that I'm finally through that contract suddenly it seems that I don't get to get the reward of the "contract price phone." and so I've been paying all that extra for nothing.
You may "think" that, but that is not what you agreed to nor what the contract you signed says. You are paying that because of the "up front" discount you got when you purchased your current phone. NOT so that you would get another discount after 2 years. Nowhere in the contract you signed/agreed to does it say you would receive a discounted phone after 2 years. Verizon contracts have NEVER said that.
If you don't want to lose the 2 year contract price option by switching plans, the best thing to do is pay the extra money for going over your data allowance. There's also the novel idea of curbing your data usage to stay within the allowance that you chose and imposed on yourself.
However, it has already been stated that you will pay less in the long run on a payment plan that you would on a 2 yr service agreement. I also wouldn't be surprised to find out that you wouldn't be able to get a 2 yr agreement any longer anyway. Verizon has done away with that option. You should probably just put it out of your mind. The next iPhone is supposed to be so expensive that Verizon might even exclude it from any lingering 2 year contract pricing too. They really can do what they want especially if you are not longer on a contract.
I also wouldn't be surprised to find out that you wouldn't be able to get a 2 yr agreement any longer anyway. Verizon has done away with that option. You should probably just put it out of your mind.
In most cases this is true. Government and enterprise clients can still get a 2 yr service contract and I can verify that I am still able to do so because of my employer relationship having tens of thousands of Verizon customers. Many of my co-workers have chosen just such an option within the past several months. I am still on the More Everything Plan and have the option of purchasing a "discounted" contract phone with approximately a $450 discount on the price of a phone. With my 15 GB data allowance giving me a net $15/month line access fee for each of my 4 smartphone lines, though, I find the $600 discount(over 2 yrs for each line) I receive for keeping my lines in a month to month status a much better discount. The fact remains that I still have the option, regardless of the fact I have chosen not to take it.