Verizon's Note 7 pricing - No benefit to buying outright

[johnpjackson]

I just bought it from Verizon on DP (device payment). I might as well make them pay the finance charges on a loan, instead of handing them all my money up front. And if I want to upgrade again in a year, when hopefully Samsung delivers a device with the specs it should have this year (6GB RAM, leading edge processor, 128GB or 256GB internal storage, and a UFS expansion card slot), then I can give them the Note 7 back, and jump up, after having paid $425 for one year for the privilege of having used it. Or, if that seems like too much money to throw away, I can pay off the remaining $425 and keep it, to either sell to someone else myself or use it to help out a friend or family member.

 

[Teegunn]

Well I preordered mine (black) through Verizon. It took a while to finally figure out if I was better off staying with my current 30gb plan or moving to the new one. Finally it seemed staying with the current plan was $20 cheaper. I can move to the new one anytime. I did do the 24 month payment plan which gave me the $25 discount off the line. No brainer.

This is the first time I have preordered a phone. I still have to get the 256 card from Samsung, but it looks like I will need the phone in hand to do that as I don't have the IMEI or MEID without the phone. Unless someone knows a way around that.

 

[The_Chief]

Nope. I'll just move the 200GB card from my Moto X Pure to the Note 7 and use it until the 256GB card comes in. Then I'll copy everything over to the new card. It's a little effort, sure... but for 25% more storage, I'll do it

 

[Jerry-rigged]

I haven't seen anywhere that they give you money off your bill if you indenture yourself by accepting the payment plan, instead of the full purchase up front.

I have 3 phones on a payment plan from Big Red. Note4, iPhone 6s+, and iPhone SE. The N4 and 6s+ both added about $12 to the bill, monthly. The SE actually lowered my bill by about $5, because it is around $20/ month, and you get a $25/month credit.

 

[kokiangel]

Just pre-ordered and got no discount on my data plan with the new verizon plan. Still the same as before. No discounts at all actually since I went from off contract to payment plan. I would have just paid outright but that was not an option.

 

[kokiangel]

One more Verizon fun fact. The "up to $300 trade-in" goes to your bill rather than your new phone or a gift card.

 

[The_Chief]

Okay, so my feeble mind is having difficulty getting around the math here. Bottom line: are we better off on a more costly 24 month installment plan, or are we better off on a cheaper plan by paying for it outright?

 

[MannyrtFresh]

Since we are talking about Verizon here does anyone know why they charge taxes on the full amount of the phone if I'm only end up paying $264 at the end of my 24 month Payment plan for it. I just pre ordered it and had to pay $60 in taxes rather than the $18 if I would of been charged taxes on the actual amount I'll be paying for the phone.

 

[seVer]

That's state dependent, nothing to do with Verizon.

 

[kokiangel]

Actually you are also probably paying more for your line access for the next 24 months. About double. My line access is $20 per month. Subsidized phones the access fee goes up to $40 so factor that into the final cost of your phone.

 

[kokiangel]

With device payment, however, you should still get a monthly discount ($15/mo 4GB plan or less, $25/mo 6GB plan or higher).

Unfortunately, with the New Verizon Plan there is no discount for choosing the device payment plan. The "incentive" is that your line access fee doesn't increase.

 

[Gmash]

Basically Verizon doesn't want to sell you the phone outright, so they give you an incentive to use the payment plan. That way it's similar to a contract in that you feel "trapped" with them instead of taking your unlocked phone to whatever carrier you want. If someone is gung-ho about buying their phone outright, you would be a fool to get it from Verizon. Buy it directly from Samsung or a third party phone retailer and it will be unlocked out of the box and you won't have to deal with the Verizon bloat either. Plus just wait a month and the price will drop. $900 for a phone is ridiculous.

 

[blackcar]

i have 6 lines unlimited everything and pay 225 per month. this is a plan i have had for 15 years now (grandfathered into it). If i use the plan wizard and use their new plan my bill goes up to 315 per month and i can no longer subsidize phones through them. I would be careful with the plan switching. Sometimes in the long run it doesn't pay off. there was a brief time that if i switched my plan it would have been cheaper than the 225, it would have been 155 per month. I actually took the time to read the fine print and it said that rate was good for only 24 months and after that they could switch my plan again and that i could not be grandfathered into the current plan. Just like stocks sometimes you have to think long term

 

[Deleted User]

Basically Verizon doesn't want to sell you the phone outright, so they give you an incentive to use the payment plan. That way it's similar to a contract in that you feel "trapped" with them instead of taking your unlocked phone to whatever carrier you want. If someone is gung-ho about buying their phone outright, you would be a fool to get it from Verizon. Buy it directly from Samsung or a third party phone retailer and it will be unlocked out of the box and you won't have to deal with the Verizon bloat either. Plus just wait a month and the price will drop. $900 for a phone is ridiculous.

This is assuming that the Note 7 has both radios in it isn't it? It seems to me that indications are you have to buy a Verizon branded phone to use via Verizon network, any one got source reference to say otherwise?

 

[Deleted User]

This is assuming that the Note 7 has both radios in it isn't it? It seems to me that indications are you have to buy a Verizon branded phone to use via Verizon network, any one got source reference to say otherwise?

May have found my own answer: http://www.computerworld.com/articl...need-to-know-about-samsungs-galaxy-note7.html (Number 3 on the list)

 

[Team420]

Think of the payment plan vs 2 yr contract like this....

Payment plan... you pay $36/mo for 24 mos for the phone = $864

If you do the 2 yr contract, you pay $299 up front, and an extra $20/mo for line access, plus the full activation fee = $299 + $20 x 24 = $779 + activation fee (not sure what that amounts to)

But... with the 2 yr contract, you are stuck with this phone and plan for 2 years, where as with the payment plan, you can switch to a new phone after its halfway paid off, which, for a phone with a battery that cant be changed, seems like the better option... Add in the fact that they gave me 2gb extra data every month for upgrading to the xl plan and doing the payment option, and I was sold.

 

[jlrosell]

Think of the payment plan vs 2 yr contract like this....

Payment plan... you pay $36/mo for 24 mos for the phone = $864

If you do the 2 yr contract, you pay $299 up front, and an extra $20/mo for line access, plus the full activation fee = $299 + $20 x 24 = $779 + activation fee (not sure what that amounts to)

But... with the 2 yr contract, you are stuck with this phone and plan for 2 years, where as with the payment plan, you can switch to a new phone after its halfway paid off, which, for a phone with a battery that cant be changed, seems like the better option... Add in the fact that they gave me 2gb extra data every month for upgrading to the xl plan and doing the payment option, and I was sold.

You forgot some parts of the equation for the monthly plan.
Subtract 25 dollars a month for the line access discount. So youre paying $36-$25 for 24 months.
Additionally, you can upgrade your phone after 30 days AND 50% of the phone has been paid off. So if the phone costs 864, you can upgrade once you have paid $432.

Thanks to this, I may be very likely to upgrade to the S8 when it comes out next year if it has specs to blow away the Note 7 with its already 6 month old internals.

 

[Fun Human]

Just pre-ordered my Note 7!!! Took device payment option which is a no brainer. Your giving me $800.+ dollars to pay over 24 months at no cost? Sure I'll take that. Tried to order online but my line access charge jumped to $40. per month. Apparently the system may or may not adjust for your current plan discounts post sale. I called a rep instead and kept my line access charge at $15.00 per month along with waived $20. activation fee.

Since your only contract with Verizon is to pay for the phone what's to lose. Use it for as long as you want for $36. per month and pay it off anytime and sell it. The only sad part is I carry 2 phones (currently Note 5 & 3) and I'm retiring my Note 3 which still works flawlessly. Been in a case and screen protected since day one! It's like new, what a work horse.

Had I only owned the Note 5 I would have not seen any reason to upgrade. And Why No IR Blaster?? Geez again!! I use it. We are defiantly at the point of diminishing returns. I'll admit though I am to tweak a new phone! Good Luck

 

[The_Chief]

So from what I'm reading here, it's almost like Verizon is paying us to be on an installment plan! Reduced access fee, pay off half the phone and trade up, or pay it off in full anytime and do what you will with it. Sounds like a plan when I go pick up the phone Friday

 

[TexandroidSS]

After reading these posts, I can't wait to get my first bill. I was told that I can finance the phone as they won't allow me to enter into a 2 year contract and keep my unlimited data.

 

[kokiangel]

Query. I checked Verizon's website and it shows that I can finally pay for my note...if I want to pay for it in full. In full it comes to $941.76. Financed is $864.00 (36.00 per month). So does that mean that Verizon will skip the taxes if I finance? Or re they in there somewhere?

 

[jlrosell]

Query. I checked Verizon's website and it shows that I can finally pay for my note...if I want to pay for it in full. In full it comes to $941.76. Financed is $864.00 (36.00 per month). So does that mean that Verizon will skip the taxes if I finance? Or re they in there somewhere?

You pay the taxes on the full price of the phone right up front the day you get the phone.

 

[kokiangel]

But I didn't pay anything when I got my phone. Not so much as a penny. Not when I pre-ordered it and not when it arrived. That is why I am asking.

 

[MannyrtFresh]

But I didn't pay anything when I got my phone. Not so much as a penny. Not when I pre-ordered it and not when it arrived. That is why I am asking.

How did you get away with that. I had to pay taxes on mine on checkout of the pre order.

 

[kokiangel]

Apparently it depends on where you live. If I left it as financed I would pay taxes on the $36 each month. If I paid it off outright I would pay the taxes when I paid it off. I paid nothing up front though. Alabama is funny that way. They had me confused when I clicked to pay it off so I started scratching my head and asking questions. Brain was not functioning or I would have realized about the monthly billing and taxes.
I chose to pay it off as I had been saving for this phone for 3 years and had the cash to do so. I didn't want to see an elevated bill for the next 2 years. That's just depressing.