Author Topic: T-Mobile 36 month payment plans  (Read 486 times)

michaelsaves

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T-Mobile 36 month payment plans
« on: October 20, 2018, 11:48:30 AM »
Cell phone plan contracts are dead, but now they just hook people on the phone payment plans.

T-Mobile has started a 36-month payment option for some phones. I got an email about it. Really a shame because I bet most of those folks will want a new phone before the 3 years is up.

bacchi

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Re: T-Mobile 36 month payment plans
« Reply #1 on: October 20, 2018, 02:42:54 PM »
There's probably an extra fee if you get a phone earlier than 3 years, too.

Fomerly known as something

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Re: T-Mobile 36 month payment plans
« Reply #2 on: October 20, 2018, 05:57:19 PM »
Well see as $20.84x36 is 750.24 vs the 749.99 of buying the Iphone outright I might consider the payment plan.

bacchi

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Re: T-Mobile 36 month payment plans
« Reply #3 on: October 21, 2018, 10:52:04 AM »
Well see as $20.84x36 is 750.24 vs the 749.99 of buying the Iphone outright I might consider the payment plan.

And that's why it's in the Wall of Shame.

EricEng

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Re: T-Mobile 36 month payment plans
« Reply #4 on: October 22, 2018, 02:46:11 PM »
Considering most of Tmobiles loans are interest free I don't really see it as a fail.  They also don't have prepayment penalties or you can stop part way by surrendering/returning the phone (and losing equity paid) with no further penalty.  They also typically require insurance, so if you lose/break the phone, still fine. The 36 month plan is a tool which can be used for good or bad.

TheGrimSqueaker

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Re: T-Mobile 36 month payment plans
« Reply #5 on: October 22, 2018, 03:06:31 PM »
Considering most of Tmobiles loans are interest free I don't really see it as a fail.  They also don't have prepayment penalties or you can stop part way by surrendering/returning the phone (and losing equity paid) with no further penalty.  They also typically require insurance, so if you lose/break the phone, still fine. The 36 month plan is a tool which can be used for good or bad.

It's definitely a good way to get an interest-free loan. That would be the up-side.

The down-side would be if the more affordable payments came across as a reason to spend more than the customer intended on the phone, or if the customer wanted to change phones or to change cellular companies before the phone was paid for. Yesterday I was speaking with a neighbor who was with T-Mobil and who wanted to switch to another company, but it would have cost her $200+ to pay off the existing phone first.

Sugaree

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Re: T-Mobile 36 month payment plans
« Reply #6 on: October 22, 2018, 03:09:55 PM »
But why would I spend $750, even interest-free for three years, when I can go to Glyde and get a refurbished model that's a generation or two old for under $200?  But I guess without people who want the latest and greatest, that refurb market wouldn't exist.

ketchup

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Re: T-Mobile 36 month payment plans
« Reply #7 on: October 22, 2018, 03:28:05 PM »
The main downside here is that T-mobile often does free phone promos and stuff that are "free" or cheap "after bill credits."  Meaning you finance the phone over 24 months (or now 36 months) at 0% with little or no down, but get credited back that amount on each bill until it's paid off.  So if you leave early, the bill credits stop and you have to pay for the rest of the phone.

It's a way of having "no contracts" but still tying you down for two years.  Now it'll be three.  Three years is an eternity for the kind of people that want brand new phones, so they'll break it a year or two early, saving T-mobile money on these phone "deals."

TheGrimSqueaker

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Re: T-Mobile 36 month payment plans
« Reply #8 on: October 22, 2018, 11:26:49 PM »
But why would I spend $750, even interest-free for three years, when I can go to Glyde and get a refurbished model that's a generation or two old for under $200?

YOU wouldn't. Some mustache-less spendypants might.

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But I guess without people who want the latest and greatest, that refurb market wouldn't exist.

Bizarre as it seems, it does create an alignment of interests.