Do cellphone carriers like Verizon not do contracts anymore?

[Chibify]

2 years ago I got my phone for $200 with a 2 year contract so I wouldn't have to pay full price. Now what I'm seeing is that you pay full price over the course of 2 years along with the data plans. Is this correct?

[Glenwing]

2 years ago I got my phone for $200 with a 2 year contract so I wouldn't have to pay full price. Now what I'm seeing is that you pay full price over the course of 2 years along with the data plans. Is this correct?

I think Verizon discontinued contracts recently.

[Arty]

I think Verizon discontinued contracts recently.

all carriesrs did, fcc passed a law pretty sure

[ZetZet]

In EU this was the case for a long time. Atleast in my country. That's why we don't really do contracts anymore. Just find a cheaper deal and buy up front.

[yippy3000]

Yes, that is correct (or you can pay it all up front)

 

However, they drastically reduced the data plan price at the same time resulting in your monthly bill being roughly the same as it was before.

[Nicodemus]

New customers i believe cannot be signed on with a 2 yr contract and pay for a subsidized phone, however existing customers can still purchase a phone with 2 year contract. (at least for Verizon)

[Suika]

I think Verizon discontinued contracts recently.

Verizon discontinued contracts for new customers and customers who change to the new plan. If you're an existing customer with the More Everything plan you're still eligible for contracts.

 

Sprint is doing contracts but are getting rid of them by 2016, I'd recommend them but the problem becomes Sprint.

 

AT&T is still doing contracts but it's difficult to get one, the easiest way is online through their website.

 

No matter how you look at it though, a contract is just as expensive, if not more expensive than a carrier's financing or BYOD options. With all plans compatible with contracts (asides from AT&T and Sprint's grandfathered plans), you're looking at $40 a month for 24 months, plus the initial down payment of whatever for a single phone. So that's a total investment of $1160 as opposed to just $650 on the iPhone 6S.

 

Source: I sell phones for three of the big carriers.

[Snickerzz]

I think Verizon discontinued contracts recently.

They did http://linustechtips.com/main/topic/425482-verizon-is-doing-away-with-contracts-and-introduces-cheaper-plans/

[Shinrin_Cole]

No matter how you look at it though, a contract is just as expensive, if not more expensive than a carrier's financing or BYOD options. With all plans compatible with contracts (asides from AT&T and Sprint's grandfathered plans), you're looking at $40 a month for 24 months, plus the initial down payment of whatever for a single phone. So that's a total investment of $1160 as opposed to just $650 on the iPhone 6S.

 

I thought all you had to pay with the taxes on the phone up front, then it's what ever the phone is per month for how long you're willing to pay. I'm paying 19.84 for my Samsung S6 Active for 30 months. (i'm paying an extra 5 for internet on a free tablet i got) and that's all i'm paying, everything else is paid by my dad, like for the plan and his and mom's phone and his tablet.

[Suika]

I thought all you had to pay with the taxes on the phone up front, then it's what ever the phone is per month for how long you're willing to pay.

You're correct. You still have to pay sales tax on the entirety of the device, the carrier doesn't want to pay it and Uncle Sam demands his money. It's typically in the $50-70 range for flagship devices but it varies per location, I'm used to an 8.5% sales tax but I know some areas are much heavier. There are however some third party locations that will pay the sales tax for you, Costco is the only one that comes to mind.

 

What I'm talking about is overall contract price versus installment price (financing). With installment programs, you're paying the full MSRP, which is why I referenced that number.

[Chibify]

Verizon discontinued contracts for new customers and customers who change to the new plan. If you're an existing customer with the More Everything plan you're still eligible for contracts.

 

Sprint is doing contracts but are getting rid of them by 2016, I'd recommend them but the problem becomes Sprint.

 

AT&T is still doing contracts but it's difficult to get one, the easiest way is online through their website.

 

No matter how you look at it though, a contract is just as expensive, if not more expensive than a carrier's financing or BYOD options. With all plans compatible with contracts (asides from AT&T and Sprint's grandfathered plans), you're looking at $40 a month for 24 months, plus the initial down payment of whatever for a single phone. So that's a total investment of $1160 as opposed to just $650 on the iPhone 6S.

 

Source: I sell phones for three of the big carriers.

How is it more expensive if I paid $200 for a phone with 2 year contract compared to paying $27~ a month for 2 years or paying upright for the phone?

[Suika]

How is it more expensive if I paid $200 for a phone with 2 year contract compared to paying $27~ a month for 2 years or paying upright for the phone?

As I said, a phone on contract is $40 a month, this applies to Verizon, AT&T, and Sprint's recent plans. With the financing/installment billing, you're only paying the $27 a month or what have you.

 

It changes per situation. There are grandfathered plans that are a set price and others with cheaper contract costs, but in general you're paying the same or more on contract.

[Chibify]

As I said, a phone on contract is $40 a month, this applies to Verizon, AT&T, and Sprint's recent plans. With the financing/installment billing, you're only paying the $27 a month or what have you.

 

It changes per situation. There are grandfathered plans that are a set price and others with cheaper contract costs, but in general you're paying the same or more on contract.

So I only pay $27 a month for the phone but what about data? For the cheapest option from Verizon, it would add $30 a month more if I'm correct.

[Suika]

So I only pay $27 a month for the phone but what about data? For the cheapest option from Verizon, it would add $30 a month more if I'm correct.

With a contract you're still going to pay for data separately. e.g. choose how much data you want for a certain price, and then +$40 for each line on contract. 

[Nicodemus]

They are getting tricky with their pricing so no matter what you choose you are paying about the same amount, if you opt for a 2 year contract they do not give you a discount on you "line access fee" so you are paying 40$ a month just for the phone to work. If you were to get a phone on the installment plan (ranging from 27-40/month depending on what phone you get) then they give you a discount for your line access fee and it is only 20$ a month. Add in the phone payment and you are still paying anywhere from 47-60 per month for you phone. Contracts used to be the way to go as you would pay 200 for the phone, and you could just cancel your contract for 350, so you would sometimes get a 800$ phone for just 550$ I used to do this all the time when i would go and sell the phone and get a new one, most of the time breaking even or even making a few bucks.

[Karlen]

The companies dropped subsidized phones, so now you are paying for them over the life of what would be a contract. So what used to be a $200 phone up front, is now a $700 phone over 24 months.