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A12CPA
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The 5th element!

New Member

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13 Messages

Fri, Sep 24, 2021 7:09 PM

Understanding trade in payoff

We traded in a phone for an IPhone 12 and was told we’d owe $300 difference.  We wanted to pay that off but were told they would bill us $10 a month for 30 months.  That was the difference between the costs of the IPhone 12 less trade in value of our old phone.  So, 10 months have rolled along and we’ve made 10 payments at a net of $10 each for $100.  Now, we’re looking at the IPhone 13 but was told that we have to pay off the IPhone 12 at 20 payments of approx $30 each instead of paying off the 20 payments at $10 each .  If we only owed $300 to begin with, and have paid $100 so far why would we owe the $600?

GLIMMERMAN76

ACE - Expert

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23.5K Messages

1 year ago

They agreed to credit you for 30 month but you agreed to keep the phone the full 30 months to get the full credits.

A12CPA

New Member

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13 Messages

1 year ago

So, would the continue to credit me for the remaining months if we were to pay off the phone?

sandblaster

ACE - Expert

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60.9K Messages

1 year ago

So, would the continue to credit me for the remaining months if we were to pay off the phone?

Yes, if you pay off the phone by continuing to make the monthly phone payments. If you pay off the phone early, you lose any remaining credits. Not sure why you aren’t getting this. You must complete the entire 30 months of payments to get all credits for the trade in.

ACE - Sage

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102K Messages

1 year ago

The website may help too. 

https://www.att.com/plans/next/

A12CPA

New Member

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13 Messages

1 year ago

I give up. It’s like if you bought a car and had a trade in and the loan was structured such that the price of the new car was $x and your trade in was $y. You decided you’d like to pay off your car early.  They looked and said you owe 19 more payments on the car but that you wouldn’t get anymore credits for the car you had traded in. Which means they got a heck of a deal. It is what it is I guess. 

sandblaster

ACE - Expert

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60.9K Messages

1 year ago

Yeah, that’s exactly the way it would be if car deals were like that, but they aren’t. You can’t compare this to a car trade in. The whole idea of the trade in deal is to keep your line obligated for service for the entire 30 months. Remember, you are getting $700 for a used phone that was actually worth much less at the time of trade in.

A12CPA

New Member

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13 Messages

1 year ago

They offered about $100 more than Apple. I just think they should net out the cost of the phone with the remaining credits for the trade in, pay that amount, trade the phone in and start the clock over Again. 

Thank you for your patience. 

ACE - Sage

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102K Messages

1 year ago

@A12CPA

Not how it works.

If it did people would have no incentive to stay with the carrier long enough for the carrier to make back its money on giving someone free or deep discounted phones.

The point of these promotions is to tie the customer to the carrier long enough for them to make a profit off of selling them service - which is AT&T's product.   The phones are a loss leader.

     Similar to the old days when there was an early termination fee if you left before your two-year contract was up, this is how At&t (and all other carriers) get you to stay.

The alternative is someone could enter into one of these deals, and the following month pay off the phone, get all the credits, and walk away with a free phone to another carrier with cheaper service.   

That's not a model that provides profit on the product. 

A12CPA

New Member

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13 Messages

1 year ago

I’ll never understand. The new phone costs $1,000. Your trade in is worth $700 ($100 more than Apple).  netting $300. They have taken your trade in and refurbished it and sold it, probably. You decide you’d like a new phone. Instead of waiting for the next 20 months to get their money you pay them the net now., which is a net $10 a month for the next 20 months or $200. You trade the IPhone 12 in for an IPhone 13 and start over again. AT&T has gotten my phone plus $300 for the IPhone 12. Seems fair to me but I don’t make the rules. 

ACE - Sage

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102K Messages

1 year ago

I’ll never understand. The new phone costs $1,000. Your trade in is worth $700 ($100 more than Apple).

Not 'worth' $700 to anyone but you over 30/36 month trade in credits.  

 netting $300. They have taken your trade in and refurbished it and sold it,

AT&T does none of this.  Trade in goes to HYLA.  HYLA scavanges the older phones for raw materials, newer ones may be refurbished for resale.  AT&T isn't getting $700, but they get something.  The only way At&t makes a profit is by keeping you for service, and giving credits over time.  

probably. You decide you’d like a new phone. Instead of waiting for the next 20 months to get their money you pay them the net now.,

  You broke the 30 month deal you agreed to.  You're returning an older used phone. It's not worth it's original price.   If you don't like the deals, don't use them.  Pay off the phone and sell on swappa or eBay.    You paid $1000, you won't get that on a year old used phone. 

which is a net $10 a month for the next 20 months or $200. You trade the IPhone 12 in for an IPhone 13 and start over again. AT&T has gotten my phone

Your used phone.... 

plus $300 for the IPhone 12. Seems fair to me but I don’t make the rules.

You don't have to participate. 

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