The Verizon Edge program

[Simple_fear85]

Anyone on verizon this is a question for you all:

I am currently on a plan where I can get a new phone every two years, but debating on the edge program. Some people I spoke to say it's worth it while others say its not.

I can check to see if I qualify in august (they told me I had to wait six months).

So any information on this program would be grateful:

Like the pros vs the cons ect.

 

[kate]

Hi Simple_fear85, I moved your thread to the Verizon forum so more Verizon customers will see it

 

[timelord65]

I'm on the edge program. Its designed for people who like to upgrade more often without having to pay full retail for a new phone every 6-8 months. That's the whole idea that t-mobile started with jump. If you keep phones for two years or longer, then edge isn't for you.

Edge isn't designed to be a great "deal" It simply allows you to always have the latest phone more quickly. I got the M8, in a few months I can edge up for the Note 4 or whatever is out in 6-8 months. Just walk into Verizon store with the M8 walk out with Note4 without having to pay full retail for either phone.

 

[Rxpert83]

Verizons early upgrade plans are designed to make it harder for a person to leave a carrier.

If you plan on sticking around for the foreseeable future, it may be worth it.

The important thing is to read the fine print and find out exactly what you're paying, what you'll need to pay if you decide to leave, ect.

 

[Simple_fear85]

What I was told by a rep is that you can swap for a new phone every year and that it saves you money.

 

[Rxpert83]

Here's some good reading:

http://phandroid.com/2013/07/19/t-mobile-jump-vs-att-next-vs-verizon-edge/

http://www.androidpolice.com/2013/0...ke-leaving-your-carrier-early-more-expensive/


Basically, since ATT and Verizon dont reduce the price of your plan when you buy your own phone, they're actually charging you twice for that device. And its actually more expensive.

Don't believe everything the store reps say, they are there to get your money after all

T-mobiles plan was the first and really remains the best. They dropped your plan by $20 each month when you buy your own device.

Id wager in many cases if you want a new phone each year itd be cheaper just to sell it after a year and put that money to a new device.
No need for Verizon to be involved

 

[sinclac]

Verizon is every 6 months as long as the phone is 50% paid off.

 

[Clementine_3]

Basically, since ATT and Verizon dont reduce the price of your plan when you buy your own phone, they're actually charging you twice for that device. And its actually more expensive.

The Edge plan has reduced pricing depending on how much data you select. Here's a little secret though, you can get that same pricing if you are off-contract. It's not listed on the site (of course) but you can call CS and ask for it.

And. Verizon also has a payment plan that does not require you to have a/renew your contract. I believe there is a small monthly fee added on ($2 maybe?) since it's a line of credit.

You can finance your phone, not renew your contract and get reduced rates.

 

[Rxpert83]

You are correct. They must have changed things up since ive last seen it. Its not as bad as I thought then

 

[Clementine_3]

For the non-contract 'deal' it was about a month ago. I actually gave up unlimited data and went with the new 'deal', it's a huge monthly savings for me and I refuse to sign a contract with them. They finally saw the light after AT&T changed their plans. Verizon changed it up in baby steps but finally got there.

 

[Rxpert83]

If you buy the phone outright do you still get the monthly savings on your plan?

If so, that would be the way to go IMO. With EDGE you have to return the device you just paid 50% of, so that you can start paying 50% of a new device before giving it back.

You're probably better off paying $600 outright, selling the device for $400-450 after 6 months, and paying $200-150 out of pocket for a new one each time you want to upgrade.

 

[Clementine_3]

Yes, you'd still be able to get the reduced pricing. As long as you are off contract and stay off contract you qualify. I've been contract-less for a long while now on all of my lines and they all are getting the discounted price.

Here's a copy/paste from my bill:
Smartphone Line Access 05/13 - 06/12 $40.00
$25 Off Smartphone Month2Month 05/13 - 06/12 -$25.00
These are the normal, monthly charges billed in advance $15.00

Two of my lines have new Moto X's that I bought from Moto directly, the other two lines have phones I got from Swappa. For me, it's the way to go.

 

[hilmar2k]

Verizon is every 6 months as long as the phone is 50% paid off.

No, 30 days.

 

[hilmar2k]

If you have the 10GB plan, Edge is a no-brainer. You get $25 off your bill, which covers every phone (phablets and iPhones notwithstanding). You can get a new flagship phone every year basically for free.

 

[Clementine_3]

For free? No. You are paying for at least 1/2 the phone's full price. The reduced Edge price is negated by the amount you are paying for the phone (generally speaking) per month.

No matter what you do you still have to figure in the cost of the phone. You can buy it outright or 'lease' it through Verizon, but it's not free.

For someone that wants a new phone every 6 months or a year and doesn't want to go through the hassle of buying/selling Edge may indeed make sense.

 

[hilmar2k]

For free? No. You are paying for at least 1/2 the phone's full price. The reduced Edge price is negated by the amount you are paying for the phone (generally speaking) per month.

No matter what you do you still have to figure in the cost of the phone. You can buy it outright or 'lease' it through Verizon, but it's not free.

For someone that wants a new phone every 6 months or a year and doesn't want to go through the hassle of buying/selling Edge may indeed make sense.

Okay, let's try this again. If you have the 10GB or higher plan, AND participate in Edge, your get a $25 credit on the line. You then pay for the phone (at a cost of $25 or less per month). Therefore, the cost of the phone is covered by the discount you get for being on Edge. Otherwise, you could pay up to $200 for the phone and get no monthly discount, and not be able to upgrade again for 2 years. Or, pay full retail for the phone (let's assume $600), get the $25 discount for being off contract (which VZW says is a limited time deal, so who knows for how long), and break even after 2 years. For me, option 1 makes by far the most sense.

 

[Clementine_3]

OK, I see how your math is working. lol.

As I agreed earlier, Edge can be the way to go for someone who's willing to be on contract and planning on changing the phone frequently. It does not make sense for someone who uses/keeps a phone for the long haul or is itching to be contract free.

They are pushing it hard hoping to get the long-haulers in, that's where Verizon wins (well, they always win). When Edge expires/phone is paid they pop your rates right back up.

And yes, even though it's still new the 'deal' is a limited time thing so...

 

[Rxpert83]

Doing the numbers for my own benefit here. Anyone see any errors I'm making?

I'm going to assume the galaxy S5 for this ($600), and standardizing any plan discounts as their effect on cost of phone.

On the Edge Program:
After paying half the cost of the device in 6 months $300, you then give them that phone. So you trade the phone as the remainder of the credit that you owe ($300)
(Chances are that phone is worth more than $300 at that stage in its life cycle. Used Galaxy S5's are selling for $525 right now 3 months into its life cycle on swappa.)

Lets factor in the $150 credit you'd earn in that time (6 months * $25)

Your net cost for the device is $150 in 6 months, and you trade the device in for $300 credit to pay the rest of it off. ~$450 total.

It comes down to a bet you're making, on whether your device is going to be worth more or less than $450 after 6 months. If its worth more, you come out on bottom.

If you aren't on the highest data tier, your 6 months credit is lower, down to a possible $60, making the bet less and less in your favor.

Pros: Lower up front cost
Con: Harder to leave carrier as every 6 months you effectively owe Verizon $600. *IMO this is really why they offer these plans
You always return the device to Verizon (Unless you pay it off in full or go the 2 years)

Without the Edge program, Off contract:
Purchase the device off contract ~$600. You still get the $25 discount, So after 6 months you have earned the $150 credit, bringing your costs of the phone a net of $450 once again.

Sell the phone at any point, pay out of pocket for the difference for the new phone.

You're betting you would come out on bottom with the edge program.

Pros: Don't have to wait X months, You keep the phone, Can switch carriers whenever you please.

Con: High upfront Price


Without the Edge program, ON contract:
Pay $200, Get $600 Device. (net $400)

No plan credit over 6 mo as the cost of the phone is built in. Whats interesting here is they're factoring in roughly $16/month no matter the plan over 24 months ($400 remainder/24 months).

After X months you can still sell the device, pay out of pocket for the difference, and get new device.

Pros: ? (Less math?)
Cons: Contract
No Plan savings after you switch phones
Harder to switch carriers.

 

[Clementine_3]

Nice comparison/breakdown.
It looks right, and for me and my peeps, the no-contract option has always made the most sense. I'm so glad Verizon finally made the Edge pricing available to the no-contract people. I'll take what I can get as no other carrier is really an option for my coverage needs.

 

[hilmar2k]

Really? People need new phones every 6 months?!?!? Hang onto it for a year and get a new phone for nothing.

 

[Rxpert83]

Really? People need new phones every 6 months?!?!? Hang onto it for a year and get a new phone for nothing.

The breakdown between EDGE and Full Price doesn't really make a difference on the timeline.

EDGE makes more sense on the 1 year upgrade plan, as the value of the device will actually be closer to the $300 you trade it in for.

But you could still end up the same without EDGE by buying off contract and being free to leave at any time. Pay $600, 1 year of $25 discounts = $300, sell device for $300, you are where you started with no obligation to stay.

 

[hilmar2k]

The breakdown between EDGE and Full Price doesn't really make a difference on the timeline.

EDGE makes more sense on the 1 year upgrade plan, as the value of the device will actually be closer to the $300 you trade it in for.

But you could still end up the same without EDGE by buying off contract and being free to leave at any time. Pay $600, 1 year of $25 discounts = $300, sell device for $300, you are where you started with no obligation to stay.

That all works for as long as VZW keeps the $25 discount in place for off contract lines. That is said to be temporary. If/when that ends, paying full retail will no longer make sense.

Also, you don't HAVE to give the phone back to VZW when upgrading on Edge. You can pay off the full balance and own it. Then you can sell it for whatever it's worth. So buy it utilizing Edge for $25/month. Keep it for 6 months at $25/month, then pay off the remaining balance of $450. That gives you a net cost of $450 after you factor in the $25 Edge credit.

That works out EXACTLY the same as buying outright upfront. Where's the downside to Edge?

 

[Clementine_3]

That all works for as long as VZW keeps the $25 discount in place for off contract lines.

The reps I spoke with (2) said the offering/sign-up was for a limited time (they didn't know how long) but once on the plan it should be good forever. Well. Verizon's forever. Like the unlimited data or older 700/1400 minutes etc. Once you are on it you're on it. If they decide to stop it or change it you get to keep it until you change it or get a new subsidy phone etc., same rules apply like the other plans.

 

[Rxpert83]

That works out EXACTLY the same as buying outright upfront. Where's the downside to Edge?

As I see it, the downside to EDGE is a renewing $600 debt to Verizon anytime you upgrade. That can be a significant barrier to anyone who got the plan for its lower cost (Verizon is pitching this as cost saving) and may look at switching plans down the road. The upside is lower payments right now.

If the potential cost down the road isnt an issue, then there really isnt a downside. Thats not everyones situation though.

Upside to buying outright is you don't owe them anything and you can switch at anytime. For that reason, Verizon would rather have you on EDGE. Downside is obviously the upfront cost.

 

[hilmar2k]

As I see it, the downside to EDGE is a renewing $600 debt to Verizon anytime you upgrade. That can be a significant barrier to anyone who got the plan for its lower cost (Verizon is pitching this as cost saving) and may look at switching plans down the road. The upside is lower payments right now.

If the potential cost down the road isnt an issue, then there really isnt a downside. Thats not everyones situation though.

Upside to buying outright is you don't owe them anything and you can switch at anytime. For that reason, Verizon would rather have you on EDGE. Downside is obviously the upfront cost.

Huh? How is renewing a $600 debt different from spending the very same $600 up front?

Now that they offer the discount for both Edge and off-contract customers, the only difference between it and buying outright is the option to spread the purchase price out over up to 24 months with zero interest or finance charges.

As long as you are on the 10GB plan, I still have yet to be shown a downside.