IPhone 13 costs: what is this free trade offer really for

0


[ad_1]

With all the carriers offering sweet trade-in and upgrade deals to essentially get you a “free” iPhone 13 (or two) this year, one can’t help but wonder: what’s the best deal? In this case, that would be the deal that costs you the least but gets you the iPhone you want. Between all the convoluted conditions and confusing industry jargon, carriers certainly don’t make it easy to compare different offers or spell out what you’re signing up for.

Carriers may be keen on signing new customers for their bottom line, but you should be careful with yours as well. After all, is it better to go for a cheaper unlimited plan that requires a 36-month commitment or get instant trade-in credits to pay a little less sales tax up front? Should you be looking for offers that give you instant trade credits or get trade credits in the form of bill credits during your contract? Sometimes it is difficult to understand all the details until you have already signed the contract. To keep you out of trouble, I took a closer look at the fine print of these offers and did some math at the bottom of the towel to find out.

Most of the carriers’ trade-in offers are so aggressive that you can get an iPhone 13 Pro “for free”.
Sean hollister

In this case, I wanted to determine which deal offers the best overall value over the long term. For example, what are my upfront and long term costs to get the latest iPhone for as little as free? For the sake of this exercise, I pretended to be a new customer in New York, buying a single phone line, who wants to trade in their iPhone 11 for an iPhone 13 or iPhone 13 Pro,

A few important caveats about the numbers I am going to refer to: they are by no means final and only serve to demonstrate how these agreements work. For one thing, these carrier offers are time sensitive and may already be different by the time you read this. The specifics of your operator plan are influenced by many personal factors, such as your credit history, your local tax rate, the number of lines you need and the special discounts you are entitled to (for example, military / veteran). I can only present a relatively basic set of numbers that does not reflect all of the many possible variations in the universe, so take my numbers with a grain of salt.

After comparing similar offers from AT&T, T-Mobile / Sprint, Verizon, Apple.com, I noticed a few tips that would help you find the best deal for you.

My main takeaways …

In some scenarios, it may make sense to pay for a device in the form of full, instant trade credits, rather than relying on trade credits in the form of bill credits.
Sean hollister

Look at the plans, not the free phone

Most trade-in credits are so high that they basically cover the cost of an iPhone 13 or iPhone 13 Pro, assuming your trade-in device is within the past two years and is in good condition. So, when looking at these deals, you shouldn’t get distracted by the allure of a free iPhone. Instead, focus on the cost of the plan after 24-36 months.

The length of the contract matters most

The length of the contract has the greatest impact on separating the best value offer from the bad. While AT&T offers the cheapest unlimited plan among its competitors ($ 65 / month), after 36 months (the length of time it takes to have service to get the best deal) it ended up costing the most money ( $ 2,445.30). Since most of its competitor’s plans are only 24 months long, I did the AT&T 24 month plan calculation just so I could compare apples to apples. It turns out that the $ 65 per month plan is the cheapest after 24 months ($ 1,630.20) and is even cheaper than the special promotion between Apple and T-Mobile / Sprint ($ 1,713.60) , which includes an additional $ 500 discount on the phone when you sign up for the $ 85 Magenta / Sprint Max plan. It is worth calculating the total cost of the plan for the duration of the contract before signing on the line, as this is where you will be spending the majority of your money.

Instant exchange credits

If you can pay off your phone’s full balance at the time of purchase and live near an eligible Apple store, you may want to take advantage of the Instant Trade-In Credits offered by Apple. The beauty of Instant Trade-In Credit is that you get fair value at the time of purchase, which reduces the sales tax you pay at checkout – unlike the online trade-in process where your device has to be sent. mailed to a third party for appraisal before its actual value is credited to your monthly bills in a few months.

Compromises with exchanges

While my hypothetical iPhone 11 trade-in credit (between $ 800 and $ 1,000) does make my monthly device payments $ 0, as I am required to have a monthly device payment plan in the As part of any trade-in offer, I cannot cancel my device plan for 24 months. If I do, I would be responsible for paying off the balance on that “free” iPhone, forfeiting the remaining value of my trade-in device, and (potentially) paying an early termination penalty. Now, if I paid for the device in advance (ideally with instant trade-in credit), I could choose a plan that better reflects my actual data usage.

Hidden fees

In some cases, the carrier may ask you to pay a deposit or activation fee and offer you different contract terms based on your credit history. While you won’t pay for your iPhone directly when your trade-in credit goes into effect, you still have to pay sales tax on the full price of the phone – there is no bill credit to reimburse this cost.

Overall winner: Verizon

Of all carrier offerings, Verizon actually had the lowest overall costs with its 24-month payment plans, even though it doesn’t have the cheapest 5G plan or the shortest deal length. . At $ 2,077.36 for the iPhone 13 and $ 2,086.36 for the iPhone 13 Pro, those totals don’t even include the $ 500 gift card that Verizon offers to customers who switch providers. The most expensive carrier offering, on the other hand, comes from AT&T and its extra-long 36-month contract. Not only will it cost your hard-earned money more, your iPhone 13 will be so outdated after three years that you might want to pay to end your contract sooner.

iPhone 13

iPhone 13 AT&T T-Mobile / Sprint Verizon Apple.com T-Mobile / Sprint via Apple.com
iPhone 13 AT&T T-Mobile / Sprint Verizon Apple.com T-Mobile / Sprint via Apple.com
Base price $ 799 $ 799 $ 799 $ 829 (unlocked) $ 799.00
Trade-in value (iPhone 11) $ 800 $ 800 $ 800 $ 340 (instant credit or Apple gift card) $ 340 (instant credit at checkout)
Device cost at checkout = tax (4.5%) $ 35.96 $ 35.96 $ 35.96 $ 22.01 $ 20.66
Activation Fee $ 30 $ 30 $ 35 0 $ 30
Financing cost 0 0 0 0 0
Funding duration 36 months 24 months (up to 30 months depending on credit) 24 months (up to 30 months depending on credit) 24 months (must use Apple card) 24months
Monthly cost of iPhone 13 $ 22.19 – $ 22.22 (invoice credits) = -0.03 $ 33.29 – $ 33.33 (bill credits) = -0.04 $ 33.29 – $ 33.33 (bill credits) = -0.04 $ 20.38 $ 19.13
Package required $ 65 / month (cheapest unlimited plan) $ 85 / month (Magenta / Sprint Max $ 80 / month (unlimited play) choose any carrier plan $ 85 / month (Magenta / Sprint Max)
Plan required + taxes (4.5%) x Financing term $ 67.93 x 36 = $ 2,445.48 ($ 67.93 x 24 = $ 1,630.32) $ 88.83 x 24 = $ 2,131.80 $ 83.60 x 24 = $ 2006.40 depends on your plan $ 85 – 16.67 x 4.5% x 24 = $ 1,713.60
Total costs $ 2,511.26 $ 2,197.76 $ 2,077.36 $ 511.01 + package $ 2,223.26
Advantages / Notes Can pay $ 5 per month to upgrade faster Part of Forever Upgrade (every 2 years get a free iPhone up to $ 800) $ 500 gift card if you change operator. Must stay with Verizon for 12 months. Must use Apple Card or Citizens One to pay for phone in 24 installments; get 3% off the total price of the phone ($ 23.97) $ 500 Magenta Max rebate in the form of 24 invoice credits ($ 16.67); application request; exchange with Apple

A table of the different operator offers available for an iPhone 13.

Gloria Sin

iPhone 13 Pro

iPhone 13 Pro AT&T T-Mobile / Sprint Verizon Apple.com T-Mobile / Sprint via Apple.com
iPhone 13 Pro AT&T T-Mobile / Sprint Verizon Apple.com T-Mobile / Sprint via Apple.com
Base price $ 999 $ 999 $ 999 $ 1029 (unlocked) $ 999.00
Trade-in value (iPhone 11) $ 1,000 $ 1,000 $ 1,000 $ 340 (instant credit or Apple gift card) $ 340 (instant credit)
Device cost at checkout = tax (4.5%) $ 44.96 $ 44.96 $ 44.96 $ 31.01 $ 29.66
Activation Fee $ 30 $ 30 $ 35 0 $ 30
Financing cost 0 0 0 0 0
Funding duration 36 months 24 months (up to 30 months depending on credit history) 24 months (up to 30 months depending on credit history) 24months 24months
Monthly cost of iPhone 13 $ 27.75 – (bill credit 27.78) = $ -0.03 $ 41.63 – (bill credit $ 41.67) = – $ 0.04 $ 41.63 – (bill credit $ 41.67) = – $ 0.04 $ 28.71 $ 27.46
Package required $ 65 (cheapest unlimited plan) $ 85 / month (Magenta / Sprint Max $ 80 (play unlimited) choose any plan $ 85 / month (Magenta / Sprint Max)
Plan required + taxes (4.5%) x Financing term $ 67.93 x 36 = $ 2,445.48 ($ 67.93 x 24 = $ 1,630.32) $ 88.83 X 24 = $ 2,131.92 $ 83.60 x 24 = $ 2006.40 depends $ 85 – 16.67 x 4.5% x 24 = $ 1,713.60
Total costs $ 2,520.26 $ 2,206.76 $ 2,086.36 $ 720.01 + package $ 2,432.26
Advantages Can pay $ 5 per month to upgrade faster Part of Forever Upgrade (every 2 years get a free iPhone up to $ 800) $ 500 gift card if you change operator. Must stay with Verizon for 12 months. Must use Apple Card or Citizens One to pay for phone in 24 installments; get 3% off the total price of the phone ($ 23.97) $ 500 off the Magenta Max package in the form of 24 bill credits ($ 16.67); requires an app

This graph compares all operators’ take-back offers for the iPhone 13 Pro.

Gloria Sin

[ad_2]

Share.

About Author

Comments are closed.