Verizon’s new device payment plan detailed (spoiler: far from UNcarrier-like)

Last week, Verizon tipped the world off to a new device payment plan that would allow users to snap up hot new devices before their contracts were up. At the time, we only knew that users could spread the cost of a device over 12 months, attached to their monthly bill. Now, a few more details have been made official by Verizon as the program has officially launched. Here’s the quick rundown:

  • The full retail cost of the smartphone or tablet has to be at least $349.99
  • You can pay in 12 month installments, or even sooner if you want.
  • There’s a $24 finance charge, which amounts to $2 per installment.
  • You will still be eligible for Share Everything plans.
  • Your first payment and finance charge are due at the point-of-sale. After that, your payments will lump in with your bill.
  • You can pay down the remaining balance of your smartphone or tablet anytime you want.
  • You can only have two devices on installment plans at a time.
  • Eligibility is subject to a credit check.
  • Combined balance for both devices must not exceed $1,000.

On top of that, you don’t get a discount on your monthly bill, and beyond that there are even more eligibility requirements Verizon haven’t disclosed. They ask customers to visit a representative to determine eligibility. It sounds like you’re applying for a credit card more than trying to buy a new phone. We didn’t exactly expect Verizon to mirror T-Mobile’s innovative UNcarrier device strategy point for point, but reading this list doesn’t do much but give me anxiety for even trying to consider going this route for my next smartphone.

It will certainly help some people get the smartphones they want (and need) ahead of their contracts’ expiration dates, but having to jump through this many hoops will turn quite a few people away. Read more about Verizon’s device installment plan here, and let us know if you’ll be taking advantage of it anytime soon.

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  • Brandon

    Verizon still sucks in terms of everything but coverage? Surprising.

    • NIGHTSCOUT

      Ah but coverage goes a long way…..

      • Cipher Zero

        Indeed. This is why I’ve let them gouge me for the past 12 or so years. I would love to jump to another carrier, but I get around quite a bit, and over the years, Verizon has proven the most reliable. When Hurricane Sandy hit my area, we had no power for 6 days, and a lot of folks on other carriers had no service, but somehow, Verizon was the only one up and running.
        They’re evil, money-grubbing, bootloader-locking scumbags, but credit where it’s due, they take damn good care of their network, and when they decided to roll out LTE, to say the roll-out was “aggressive” may be slightly understating it.

  • Shawn_Locke

    It’s Verizon we’re talking about so that’s hardly a spoiler. Still, it’s a step in the right direction (as small as it may be).

  • guitarist5122

    So, no substity pricing and no monthly discount on plans? Guess I’ll be leaving Verizon when my plan is up. Thankfully we just upgraded this last December so we’re good for awhile. Heck, maybe they’ll wise up and cut costs somewhere by the time my contact is up.

    • Lactose_the_Intolerant

      Verizon… cut costs?? You keep using that word…

  • lawnsprinkler

    heh. $24 on a $500 phone over 12 months is still 4.8% interest.

    • http://www.phandroid.com Quentyn Kennemer

      Yep, still quite ridiculous when considering you don’t even get a discount on the plan.

      • David Cramblett

        ^^^ This is what bothers me most! I still have to keep paying Verizon for phone subsidy even though they aren’t subsidizing my phone at all. Really irritates me, but in my region and for my use T-Mobile coverage just doesn’t get it done.

        Has anyone ever tried a class action against Verizon/AT&T/Sprint for continuing to charge us subsidy when we’re off contract?

    • http://www.facebook.com/elijahk050710 Elijah O’Campo

      A lot more than what t mobile is asking for… It sucks :/

    • Brian

      Actually, it’s more like an 8.75% interest rate. Loans need special calculators :(

  • Covert_Death

    I’ll still be switching to Verizon when I can get off of sprint. sprint has decent customer service but at the end of the day i rarely use it, and what i DO notice is coverage (or lack there of in certain areas). i just need reliability at this point.

    I do hope Verizon starts getting “non-customized” phones though as i truly would like to pick a carrier ONLY because of service and not because they do or don’t offer the phone i also want. every other carriers is headed this way… Verizon needs to join in, it would only benefit them from my perspective.

  • effApple

    so whats the advantage of this? If the phone is not subsidized, why should I be locked into a 24 month contract? Why are there no discounts to my plan instead? FU Verizon, cant wait until November to drop you.

    • Covert_Death

      your not extending your contract, your buying a new phone in the MIDDLE of your contract but without having to pay full price all at once.

      all verizon is doing is offering a loan under their name instead of a bank. you have to pay it off with monthly installments….

    • http://twitter.com/Defenestratus Defenestratus

      If you have grandfathered unlimited data, you never have to lose it with this.

      If you want to upgrade your phone after a year, you can do so without having to wait for your contract to come up for renewal.

      I actually like the idea.

      • Robert

        Apparently, everyone is trying to confirm if you will be allowed an installment plan with unlimited data because it appears they are only offering it if you have a shared data plan.

      • effApple

        I believe Verizon can terminate grandfathered contracts at any time they wish. Your contract is only valid for 2 years, so after that point they can really do whatever they want. Not that they are no longer honoring grandfathered contracts right now, but it would not surprise me to see this happen in the next year or two.

        Regardless, I’m tired of Verizon’s antics, encrypted bootloaders and lack of phone selection, I’ll take my business to TMobile, where their prices are reasonable, Nexus phones will always work, and they dont try to bend their customers over every chance they get.
        /rant

        • jackdubl

          People are always writing stuff like this, that Verizon, at their sole discretion, can terminate your unlimited contracts at any moment. I’ve known plenty of people in my lifetime who have had crazy grandfathered plans that you wouldn’t believe, many older people I know have plans that haven’t been offered in near twenty years. I’ve never heard of Verizon, or anyone else, force people off of any kind of grandfathered plan. I’m sure there have been instances, but I’ll wager it had more to do with tech than a business decision.

      • PhoenixPath

        It’s been confirmed on the other android site.

        More specifically: They will (for the time being and at their discretion) allow you to keep your unlimited plan when using their “financing”.

      • Wojciechowski

        For same money and same bill you can by same phone with no contract

    • Wojciechowski

      Where does it say about 24 month contract ?
      I thought it is 12 month…

  • Cory Wilson

    Why do people even use Verizon with their cdma crap and absurd pricing?

    • http://twitter.com/Defenestratus Defenestratus

      Because in terms of network coverage – there is simply no equal.

    • enomele

      I use them for their coverage, in bumfuck no where WI I still get data most everywhere. And eventually the will be a GSM carrier.

    • PhoenixPath

      Excellent coverage and reliability.

      • David Cramblett

        Not to mention AT&T is really no different. Sprint (only slightly better pricing) and T-Mobile (much better pricing) don’t have the coverage that many of us need or want.

        Some of my friends have T-Mobile and their phones don’t even get cellular reception in their house within a major US city. I think what T-Mobile is doing in regards to pricing and consumer fairness is great, but many can’t handle their lack of coverage.

        • aeok18109

          The ONLY reason I am still with Tmo is price, and phone selection. End of story. Their coverage is pretty ass.

          • sushimane

            they may not have reception but if u have wifi u should be good.

    • DavidB23

      Their LTE rollout is over a year ahead of ATT, 2 years ahead of sprint. LTE is not CDMA.

  • http://twitter.com/Defenestratus Defenestratus

    You can keep your unlimited data too with this BTW.

    No need to ever renegotiate your contract.

    • PhoenixPath

      for anyone else (already replied to “snot” in another thread):

      It has been confirmed elsewhere that VZW will allow users to keep unlimited when using this financing.

      • Wojciechowski

        Where ?

        • PhoenixPath

          The other android fan site….Robot-Life or some such. ;-)

          (Sorry, don’t want to be accused of advertising for another site here)

  • Toilet Seat Wipe

    I haven’t been on a contract in 4 years. When I see stuff like this, disguised as a great deal, or even worse, the whining by the Verizon customers, I have to laugh my ass off.

  • Wojciechowski

    Let’s see…
    I can buy now SG III for 600$ without contract, and with it for 99$( in Walmart 39.80)
    It means with this plan I have to spend 500+ 24=524 to get basically one year contract with no discount on monthly bills.
    How Verizon can charge same money when they do not subsidized phone is beyond logic but in line with greed and with thinking that customers are idiots.

    • JaswinderSinghJammu

      They think people are dumb…I hope T Mobile and Sprint keep pushing their LTE deployment faster and further and people will give them their business. I am not a big fan of limited data

  • Wojciechowski

    OK now I am in a loop of fools…
    Is it 24 month contract, 12 one or no contract ???

    • David Cramblett

      No subscriber Contract. Up to 12 month re-payment plan for phone (essentially a contract as well – just a different kind)

      • Chad Vincent

        It’s really a “lost phone/can’t wait” financing plan. You still get normal renewal discounts every 24 months (but no earlier, now), and if you need to buy a phone while already under contract, you can finance the phone instead of paying full price up front.

        It’s the equipment benefits of UnCarrier with none of the subscription benefits.

  • masa_amorfa

    you’re surprised that they are checking credit? that is an obvious thing to do.

  • ATBvsBFZ

    yawn

  • Del373

    I’m still waiting to see what Verizon’s big upcoming announcement is. So long as they don’t try to take away my unlimited data, I’m good.

  • http://www.vgchartz.com SuperChunk

    So now. $200 for a phone plus your 2yrs worth of service.
    Will become. $500 for a phone plus your 2yrs worth of service.
    How does anyone see paying $300 MORE a good thing just to not have a contract.

    Forget that. I’ll take the nearly free phone plus a contract any day. Its not like the service price is changing.

  • Jayshmay

    Count me out! Bye Verizon! I Wilkinson be getting an S4 on T-Mobile THIS coming Wednesday!!!
    The combination of HSPA 21/42 + LTE (Later this year) will be a nice combination of high-speed data.

    • DavidB23

      If you are lucky enough to have coverage. Good luck with that.

  • Dan

    Am I missing something this all seems like such a scam. Your not forced to sign a contract with any carrier you do it to save a ton of money on a phone. Do the math real quick if you buy a 600 dollar phone for 200 and then cancel and pay the cancelation fee of 325. You still save money ($75). Not to mention the cancelation fee goes down by 10 $ each time the bill is paid on time so if you use a phone for a year and then cancel its still $200 cheaper than buying it at full price. Why would anyone pay verizon or tmobile to finance a phone. If you have a thing against contacts then buy a phone on a credit card and quit whining about it.

  • KingOliver

    VZW does have the best coverage in my area but this time next year I will be leaving for some kind of $50-$60 plan.

  • ethepp1080

    First payment and sales tax is due at purchase. Not finance charge.

  • Jason

    Surprise level: zero

    Doesn’t really matter to me though. I still have an unlimited plan, so from now on I just intend to buy phones at their full retail price.

  • Bob Meyer

    Sounds like a great deal for Verizon, not so great for customers. If you can’t afford to pay up front for the new Smartphone of your dreams, you probably shouldn’t be paying finance charges, either. Just wait until your contract is up and at least get the Verizon subsidy.