Mark Booth
Senior HTF Member
- Joined
- Aug 25, 1999
- Messages
- 3,580
Okay, I did a little research. Verizon's plan for this is called Edge. But, as it turns out, Edge costs a little bit more than a regular subsidized plan. Example:DaveF said:Apparently they do now, as of a year or two ago. I think Johnny first told me about it; I've subsequently read about it elsewhere.
If you're past the two year commitment, ask about dropping the plan price.
64GB iPhone 6 on 2-year contract with 2GB of data (unlimited minutes, unlimited text)
Regular subsidized plan:
$299.99 plus sales tax (in California, sales tax on the unsubsidized price of $750) up front and then $75 per month plus tax for two years. At the end of 2 years you own the phone outright. Total cost (not counting monthly sales tax on the service bill): $299.99 + $63.75 (tax) + $1,800 ($75 x 24) = $2,163.74
Verizon Edge plan:
Sales tax up front, plus $31.24 per month (x 24) to finance the phone, plus $60 per month for service. At the end of 2 years you own the phone outright. Total cost (not counting monthly sales tax on the service bill): $63.75 (tax) + $749.76 ($31.24 x 24) + $1,440 ($60 x 24) = $2,253.51
So, Edge costs you about $90 more over 2 years.
Of course, the biggest advantage of Edge is that the monthly service stays at $60 and the $31.24/month goes away after 2 years. However, that only results in a savings for people that keep the same phone for at least 31 months. If you upgrade more often than every 31 months, you lose some money going with Edge. I arrived at 31 months because, at the end of two years, the difference in the monthly bill is $15 ($60 vs. $75). $90 / $15 = 6. It will take six months beyond the two years to break even (recover the extra $90). So, at the 31st month you are actually ahead of the game with the Edge plan.
Still, not THAT much of a difference. I can see how it can be attractive for people that can afford $93.24 a month (vs. $75) but have the $299 cash up front.
Mark