Verizon. Should I do 2 year contract or go prepaid?

[GoodEnough]

I am paying $60/mo for 2GB plan.
I want to replace LG G2, since it’s acting buggy.

If I wait until April ‘16, I can renew for 2 years and get some subsidy
(I assume it’s like pay $200 for a $600 “latest/greatest” phone)
2 year contract is only to help pay for phone, which I don’t care about
(2013 phone is perfectly fine for me, but mine is now locking up/rebooting)

Alternatively, I can go to “prepaid and autobill” for $45/2GB,
and supply my own phone.

Does it makes sense to just buy $200 phone like MotoX 2014,
and then just go to $45 prepaid plan in April?

 

[glenn1]

I am paying $60/mo for 2GB plan.
I want to replace LG G2, since it’s acting buggy.

If I wait until April ‘16, I can renew for 2 years and get some subsidy
(I assume it’s like pay $200 for a $600 “latest/greatest” phone)
2 year contract is only to help pay for phone, which I don’t care about
(2013 phone is perfectly fine for me, but mine is now locking up/rebooting)

Alternatively, I can go to “prepaid and autobill” for $45/2GB,
and supply my own phone.

Does it makes sense to just buy $200 phone like MotoX 2014,
and then just go to $45 prepaid plan in April?

If you don't feel obligated to stick with VZW prepaid, you could hop to Cricket Wireless and get 2.5GB of data for $35/month if you use autopay. They're an ATT subsidiary and use the same towers, etc. so you shouldn't notice much of a drop in service or coverage. That $10/month savings will pay for the $200 phone you're considering if you stick with them for the same 2 years.

 

[GoodEnough]

I never liked ATT. Crappy reception in my area.

 

[Raduque]

Full retail on a Moto X Pure and tell Verizon to stuff it's subsidies.

 

[Artdeco]

Go prepaid, buy a used phone off swappa

 

[notposting]

Go prepaid, buy a used phone off swappa

If you want to stay with Verizon network, aren't using much data, this would be way to go.

Still have my unlimited data line on a family plan, but cost will finally go over $100/mo total next September or so. Good bye Verizon postpaid after 11 years, I anticipate.

 

[Chocu1a]

I am paying $60/mo for 2GB plan.
I want to replace LG G2, since it’s acting buggy.

If I wait until April ‘16, I can renew for 2 years and get some subsidy
(I assume it’s like pay $200 for a $600 “latest/greatest” phone)
2 year contract is only to help pay for phone, which I don’t care about
(2013 phone is perfectly fine for me, but mine is now locking up/rebooting)

Alternatively, I can go to “prepaid and autobill” for $45/2GB,
and supply my own phone.

Does it makes sense to just buy $200 phone like MotoX 2014,
and then just go to $45 prepaid plan in April?

First off, if your phone is acting buggy, try a factory data reset in recovery. You know, a full wipe & reset. Will make phone nice & snappy just like when you first got it.
Second, All Verizon LTE phones are sim unlocked. You can easily try out a sim from T-Mobile or AT&T prepaid mnvo to see if reception is good or not.

 

[chitwood]

Am I the only one that doesn't really see the downside of contracts?

If you don't really have any intention of leaving the carrier, you're happy with your data plan (which you can change at any time whether you're under contract or not) and you get a $700 phone for $199 every two years.... what's so bad about that?

 

[GoodEnough]

The downside is that I don't need a new $700 phone every 2 years. No free lunch. They aren't giving anything away for free.

With contract, your paying that $700 over the 24 months. I'd never actually pay $700 for a phone, but that's what the $15 a month contract premium is. $360 over two years.

I just did a factory reset, and only reinstalled critical apps. Phone seems to be working great again! Keeping this G2 forever, and switching down to $45/2GB once my contract is up.....no need to pay for new phone if I don't need one.

 

[accguy9009]

Full retail on a Moto X Pure and tell Verizon to stuff it's subsidies.

totally agree

 

[Raduque]

totally agree

The best part is with an X Pure, you can tell EVERY carrier to stuff it's subsidies, and use them all with one device.

 

[GoodEnough]

Pure? No chance in hell I am paying $600 for a new 2015 phone.
I usually stick 1 or 2 gens back for the value sweet spot.

LG G2 seems to be working great again,
and I plan to milk it for as many years as possible.

 

[Chocu1a]

If your G2 starts acting up, you can always grab a slightly used phone at Swappa. Got a Note 4 a few months back for $275.

 

[openwheel]

That G2, is a fantastic phone if GPS works. I wanted it so badly but GPS never worked for me.....

 

[Midwayman]

Am I the only one that doesn't really see the downside of contracts?

If you don't really have any intention of leaving the carrier, you're happy with your data plan (which you can change at any time whether you're under contract or not) and you get a $700 phone for $199 every two years.... what's so bad about that?

Most place the line charges increase the the amount of the subsidy or more. Plus you are paying MSRP for that phone. You can get them for cheaper. You also get a locked phone, or one with carrier bloatware on it. If you buy from a 3rd party normal that isn't the case. Plus if you don't actually want a new phone every 2 years you can save a ton of money. Unless you're on some grandfathered rate it doesn't make sense anymore.

 

[chitwood]

Most place the line charges increase the the amount of the subsidy or more.

Thats a one time fee when you sign the contract, and its like $35 on Verizon.

Plus you are paying MSRP for that phone.

Um. What? Getting your phone with a contract means literally the exact opposite of this. Thats the whole point of the subsidy, you don't pay MSRP.

You can get them for cheaper.

Show me where I can get a 64GB iPhone 6S brand new out of the box for $200.

You also get a locked phone, or one with carrier bloatware on it. If you buy from a 3rd party normal that isn't the case.

This is definitely true, which I avoid and buy my phones on Swappa. However it does not bother my wife one bit.

Plus if you don't actually want a new phone every 2 years you can save a ton of money. Unless you're on some grandfathered rate it doesn't make sense anymore.

Pretty sure the wife in fact does want a new phone every 2 years, likely even more frequently than that if it were possible. This 5S she has now barely made it 2 years, she beats the shit out of her phones.

 

[Artdeco]

I guess my concern about a 2 year contract is that the carriers are in the process of becoming dumb pipes, locking into a contract now might not be prudent in the long run financially.

 

[chitwood]

I'm definitely willing to believe that the new 'no contract' system is better than being on a contract, I guess I just haven't heard a true convincing reason yet.

Is there a contract premium? Some sort of hidden fee(s) ?

 

[obidamnkenobi]

I'm definitely willing to believe that the new 'no contract' system is better than being on a contract, I guess I just haven't heard a true convincing reason yet.

Is there a contract premium? Some sort of hidden fee(s) ?

heck yes! At least with AT&T cheapest was something like $90/month with phone subsidy. They drop it by $20-25 if you don't subsidize (so $600 over 2 years + $200 = $800 for new phone!). But I got perfectly good service with H2O or cricket for <$40/month.

So a difference of $1300 over 2 years. I could buy some badass phone off contract for that.

*this was years ago so numbers may have changed.

 

[tHa ShIzNiT]

I guess my concern about a 2 year contract is that the carriers are in the process of becoming dumb pipes, locking into a contract now might not be prudent in the long run financially.

I hadn't heard of the term dumb pipes until just now...what does this mean in the grand scheme of things?

I'm definitely willing to believe that the new 'no contract' system is better than being on a contract, I guess I just haven't heard a true convincing reason yet.

Is there a contract premium? Some sort of hidden fee(s) ?

I believe my AT&T bill is something like $25/month cheaper if I'm not on contract. And that $25 is offset by the subsidized price of the phone, but you end up paying much more if you're on contract than if you just bought the phone outright.

Edit: actually now that I'm doing the math again...$25 x 24 months = $600. They subsidize the phone cost by $600, so the cost would be equivalent *if* you upgraded your phone every 2 years.

 

[Artdeco]

I hadn't heard of the term dumb pipes until just now...what does this mean in the grand scheme of things?

That instead of the carrier being everything to mobile communication, from the phone supplier to data/voice/text provider, you buy your phone wherever you want, and put it on your network of choice. Subsidized plans hid the costs of the phones and the plans, and had so many options it purposely confused consumers as to what the real costs are/were.

This levels the playing field, makes the real prices much more obvious, and will hopefully force the providers to drop their prices, and make the whole process more transparent.

 

[Midwayman]

Thats a one time fee when you sign the contract, and its like $35 on Verizon.

Nope. You're thinking upgrade fee. Typical break down is $X for a data pool + $Y per line charge. That per line charge is $20-30 less without contract. Over the life of a contract that pretty much exactly equals the discount you get for signing a contract. That is if you can even get a contract anymore.

Um. What? Getting your phone with a contract means literally the exact opposite of this. Thats the whole point of the subsidy, you don't pay MSRP.

You sure do. You just pay it over time through the above increased charges. Make no mistake, you are being charged MRSP. Its just hidden.

Show me where I can get a 64GB iPhone 6S brand new out of the box for $200.

Doesn't exist, but you're not really paying $200 for an iphone either. Iphones don't tend to discount a ton, but getting a $100-200 off a new android phone isn't a challenge. And that's a real saving, not just hidden somewhere else.

Pretty sure the wife in fact does want a new phone every 2 years, likely even more frequently than that if it were possible. This 5S she has now barely made it 2 years, she beats the shit out of her phones.

Well there are plenty of non contract options for that now. ATT next allows it as does the Apple yearly upgrade program for the iphone. You can still save quite a bit of money even upgrading every 2 years if you're willing to do the legwork.

Anyhow it sounds like you're the cell phone companies ideal customer. Doesn't think about switching, only looks at the initial price and per month rate, upgrades all the time, etc.

 

[Raduque]

Is there a contract premium? Some sort of hidden fee(s) ?

There used to be. Basically, even after the contract was up, you were still paying the subsidy. Now, when you go off-contract, you do get a discount. On AT&T it was $25/line I think.

 

[duragezic]

I didn't realize they still had contracts.

When I finally when to get a smartphone this summer from VZW, there was no contracts. The phones were all full retail price, just they allowed you to pay them off monthly over 2 years.

At that point I'm not sure what is the point of prepaid other than you pay it in advance as opposed to paying the bill for the previous month of service. Seems like they could just do away with that now. It made sense when your only other option was 1 or 2 year contract.

 

[paperwastage]

At that point I'm not sure what is the point of prepaid other than you pay it in advance as opposed to paying the bill for the previous month of service. Seems like they could just do away with that now. It made sense when your only other option was 1 or 2 year contract.

less taxes on prepaid

but yeah, prepaid + postpaid is getting similar... hence, the carriers try to differentiate it more (eg: postpaid get the international calling/roaming benefits while prepaid generally doesn't)