What is the cost difference between the device payment plan and a two year contract?
clg92
Enthusiast - Level 3

Just curious, are most people on the device payment plan or are people still doing a 2 year contract? I'm still on a 2yr contract (which is up in May) and want to know if device payment is worth it. What's everyone's experience?

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Re: Device payment vs. 2 yr contract
Snn5
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Here's the rub:  On contract you pay $20 more a month in line access fees.  On a device payment plan, you pay $20 plus the monthly cost (total price divided by 24 months) of the device. 

In this way, a $200 phone won't cost as much as a $700 phone.  A $200 phone would cost $8.33 a month and the $700 would cost $29.10. 

So, a contract customer might pay $40 for either phone a month while the DPP customer would pay $28.33 or $49.10. 

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Re: Device payment vs. 2 yr contract
Snn5
Legend

Here's the rub:  On contract you pay $20 more a month in line access fees.  On a device payment plan, you pay $20 plus the monthly cost (total price divided by 24 months) of the device. 

In this way, a $200 phone won't cost as much as a $700 phone.  A $200 phone would cost $8.33 a month and the $700 would cost $29.10. 

So, a contract customer might pay $40 for either phone a month while the DPP customer would pay $28.33 or $49.10. 

Re: Device payment vs. 2 yr contract
Weth
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You must calculate each case as the example above by Snn5 shows it could be better for contract sometimes and at other times device payment plan. 

A Quick check is to add $480 to the contract phone price ($20 X 24).  If that is more than device payment retail price, go with device payment plan.  If it is less, consider contract.