re: 78 worry free payments for a total of $2339.22

My wife's iPhone 5 broke this weekend. Went to AT&T store, we weren't eligible for an upgrade but on the NEXT plan, we could pay sales tax on a new iPhone 6, and just pay $22 a month for 30 months added on our bill!!!

Where do I sign up? Here, take my money!

A buddy of mine managed an Aaron's in So. La. after graduating. Made $150K easily.

Does that say 89% interest rate??? Damn, how do they get away with that.

I feel obliged to get this info out there.

The NEXT plan from AT&T and its related cousins at other carriers is the way of the future. By 2016, it will be the ONLY way to purchase a phone.But it isn't as bad as it seems up front.

The way it has traditionally worked:
The regular 2 year contract price of an iPhone is $200. The plan is $65. When you get done with the two year contract, you can buy another phone for the $200, or you can keep your phone - you still pay $65 a month.

The NEXT Plan
The plan is $40. The full price of the iPhone is $600. You pay interest free payments of $25 for 2 years. So for two years, you pay $65, just like you would above.. The difference is after two years, your bill goes to $40 if you don't get a new phone, and you saved $200 from the initial purchase.

Its going to take the American consumer some time to get used to it, but it is a good deal.

I haven't really seen anywhere were the underlying plan suddenly is cheaper with NEXT.

Could be mistaken though.

6.5 years of cell phone plan..? Where do I sign-up?

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I haven't really seen anywhere were the underlying plan suddenly is cheaper with NEXT.

Could be mistaken though.

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What they essentially do is give you a $25 discount on the plan if you are a NEXT customer.

Right at the bottom in the green box: LINK

Here's the catch. At 14 months in, the residual value of the phone is enough where you can trade it in for a new phone without paying. People who want the newest iPhone every year can do so, and their plan will never increase and they will never have an early termination fee.

People like me that can handle an iPhone for 3-4 years will get some relief in plan cost after the phone is paid off.

Look at it this way.

Traditional Way Two Year Cost:
$200 up front
$65/month x 24 months = $1560
Total Paid Over 2 Years: $1760

NEXT Two Year Cost
$0 Up front
$40/month x 24 month for plan = $960
$25/month x 24 month for phone = $600
Total Paid Over 2 Years: $1560

Here's where there is savings

Traditional Way THREE Year Cost:
$200 up front
$65/month x 36 months = $2340
Total Paid Over 3 Years: $2540

NEXT Three Year Cost
$0 Up front
$40/month x 36 month for plan = $1440
$25/month x 24 month for phone = $600
Total Paid Over 2 Years: $2040

-or if you want to get the newest iPhone every year (really, 14 months)

Traditional Way 2 year Cost With Upgrade:
$200 up front
$65/month x 24 months = $1560
Early Termination Fee After 14 Months = $200
$200 for New Phone
Total Paid Over 2 Years: $2160

NEXT Two Year Cost with Upgrade
$0 Up front
$40/month x 24 month for plan = $960
$25/month x 14 month for phone = $350
Trade in Value for Phone at 14 months= ($250)
$25/month x 10 month for new phone = $250
Total Paid Over 2 Years: $1560

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anc

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Do you work for ATT? Because if not, you should. You just sold me on NEXT for wife and I if I can verify your math.

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By law don't they have to be given the equivalent of an amortization schedule so it's all in black and white?

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I don't think there is an amortization schedule. I've never purchased anything from any of these places, but I believe that since it's rent to own, you don't own it until the final payment is made. If you return it after 2 weeks, all you pay is the 2 weekly payments. You're not on the hook for the balance of the "principal".

Like another poster mentioned, when you get something from a RTO place, it may not be brand new. So not only are you paying a shitload for the product, you are getting a product that someone else may have used for a few months.