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Verizon two year contract vs one year?

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  1. Aypse

    Aypse Well-Known Member

    So another thread was briefly discussing the difference between the two contract lengths, but I did not want to highjack that thread any further than it already was.

    What is the difference in pricing for the phones and pricing for the plan on a one year contract vs two?

    From what I gather, the phone costs $70 more but you can upgrade after one year without any penalty or fees on a one year contract. Is that correct? I also think that after one year, a phone will still be somewhat relavent and so you can easily get your $70 by reselling it rather than waiting two years when the phone is completely obsolete. Thoughts?

  2. phantom6294

    phantom6294 Active Member

    Looking at the VZW website... here's a few examples (no contract, 1-year, 2-year):

    DROID Pro: $479.00 vs. $349.99 vs. $279.99
    DROID X: $569.99 vs. $369.99 vs. $299.99
    DROID 2G: $559.99 vs. $369.99 vs. $299.99
    DROID Inc: $529.99 vs. $319.99 vs. $249.99

    So, as you said, $70 price difference between 1-year and 2-year. Difference between no contract and 1-year varies from $210 to $150.

    Looking at it long term... assume you start a new 2-year contract, and buy a DROID X:
    Initial Cost - $$299.99
    Upgrade to some new phone at full price in 1-year: ~$500
    Total Cost: ~$800

    Start a new 1-year w/ DROID X:
    Initial Cost: $369.99
    Upgrade to some new phone at 1-year, subsidized price: ~$375
    Total Cost: ~$750

    So, if you want upgrades every year... time to switch to a 1-year contract. Then, as you said, you can sell your old phone and cut that cost even more.

    Obviously, if a new phone every ~2 years is good enough... nothing really changes. I plan to move to a one year contract next time I re-up.
    YankeeDudeL likes this.
  3. Knewz

    Knewz Well-Known Member

    If you have the money, do 1 year contracts so you can upgrade every year. The only thing you'd be missing out in is free phones or any other specials they may run on them like BOGOs or free BT
  4. rdalcanto

    rdalcanto Well-Known Member

    I'm currently on a two year contract that I started one year ago. I can upgrade my primary line to a new phone with the new contract price by getting a new contract. My question is can I get a one year contract now? Will there be a "penalty" for doing that? Thanks.
  5. najaboy

    najaboy Well-Known Member

    The short answer is yes, with a little bit of work and a knowledgeable CSR.

  6. rdalcanto

    rdalcanto Well-Known Member

    I was thinking about my question more after I went to bed. When I signed the two year contract one year ago, it was with the knowledge that I could get a new phone in a year by signing a new two year contract, and then getting another phone a year after that, etc. But during my two year contract, they have changed the rule for the next two year contract. That is not fair. They are basically forcing you into another two year contract that no longer lets you get a phone in a year, like you were told you could when you signed the first two year contract. If they change the rule, they have to let you get a one year contract now even though the two year isn't up yet.
  7. najaboy

    najaboy Well-Known Member

    Not quite the way it works. Your future contract is 100% irrelevant. Annual upgrades were a perk, not an entitlement.
  8. rdalcanto

    rdalcanto Well-Known Member

    I will have to try to find a copy of the contract. If it says in the contract, that you can get a new phone at one year by signing a new contract, then it is not a "perk." If they don't tell you, that when you get that new phone in a year, that the new required two year contract will be very different from the one you are signing, that seems like a bait and switch to me.
  9. MikeAce00

    MikeAce00 Well-Known Member

    They definitely play a little bait and switch. But its more like they cherry pick what they want to share with you. I didn't know my NE2 dropped from $100 to $50 at my last upgrade and now that its going away, I think I'll jump to the one year contracts.

    My last CSR also told me if I didn't use my $50 NE2 credit by March that Verizon would take it away? Sounds like BS to me but maybe... He was trying to tell me not to wait for the bionic and buy now while I have the NE2 available.
  10. rdalcanto

    rdalcanto Well-Known Member

    I don't think they intentionally tried to hide the contract change from me a year ago when I got the two year contract, and they told me I could get a new phone in a year. They probably didn't know the change was coming. But now that Verizon has made the change, I think they need to let everyone who is up for the new phone at the one year mark, get a one year contract without a penatly if the customer wants it.
  11. najaboy

    najaboy Well-Known Member

    I don't know how it can be explained any simpler... it has nothing to do with your contract aside from you signing a new one at the time of upgrade.

    The contracts cover rates and certain fees... not the courtesies extended to us for maintaining rate plans above a minimum level.

    That being said, they are honoring the exact terms that they extended to you with the program even with it ending. Current customers who otherwise had an annual upgrade left can use it to purchase a new phone at the promotional price if signing a new two year contract. That's it... after that, you're on a new contract and your argument would be moot anyway. If you don't like it, you could always go to Sprint, where they won't even give their customers that last annual upgrade they had on their account.
  12. rdalcanto

    rdalcanto Well-Known Member

    There is the problem. They changed the terms of the new two year contracts. I want to get the new phone at one year that I was told I could when I signed my two year contract last year, but I don't want the NEW and DIFFERENT two year contract. If they are changing the two year contract, then I want the one year contract when I get the phone I was promissed I could get one year ago. (I am more than happy to sign another two year contract if they give me the same terms I had on my contract one year ago - upgrade at new contract price at one year). If they say I HAVE to sign the DIFFERENT two year contract, with different terms that I don't like, or give up on the new phone I was promised a year ago, then I will be PISSED!

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