Verizon Edge Upgradeable vs 2 year contract Smartphone Plan Review
Last Update: 8/29/2017
Verizon cancelled the Verizon Edge Upgradeable Smartphone plan.
Verizon Customers on active device payment agreements before 5/31/15 can upgrade their device, which is an option to turn in your existing device and purchase a new device on a device installment agreement without an upgrade fee. You must meet the other eligibility requirements for device payment program to use this option.
Verizon announced that customers are eligible to get a new iPhone every year through the annual upgrade program. The new program allows you to turn in your phone and upgrade to a new iPhone every year. If you pre-ordered an iPhone 7 or iPhone 7 Plus, you’re automatically enrolled in this program if you’ve elected the Device Payment option.
Verizon has announced the end of 2 year plans effective August 13, 2015. Only those currently on a 2 year plan, can get a new phone with 2 year commitment, when their current commit is fulfilled. New customers cannot buy phones with 2 year plans. Tablets with 2 year contracts are still available as of Summer 2016.
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Verizon created a new wireless plan called Verizon Edge to address the needs of customers who want to upgrade to the latest and greatest Smartphone every year. They started in July 2013, a week after AT&T unveiled its similar Next Plan. Later, the focus on Edge was shifted more towards paying a monthly installment fee for your smartphone instead of a standard 2 year plan.
- Typical Phone cost $650 = Monthly installment payment $650/24 months = $27/per month - 0% APR
Is Verizon Edge Worth it or is Verizon Edge a ripoff?
Normal Smartphone plans in America require shoppers to commit to a 2 year contract. People cannot change phones during this time unless they want to pay an expensive early termination fee (ETF), for cancelling their contract.
In a separate blog post, we analyze AT&T Next Plan and T-Mobile Jump! On Demand, which are similar to Verizon Edge, but a lot cheaper. Also AT&T Next vs Verizon Edge vs Apple iPhone Upgrade Program is a related review.
Be sure to download the BuyVia App, which helps you save money on items you want from stores you like, both online and locally.
Verizon does allow you to unlock Smartphones with SIM slot right away by calling customer service. Some phones come shipped factory unlocked. AT&T waits until you fulfill your contract. This is much better for international travelers.
Verizon changes its plans from time to time, so we will reexamine them when necessary. Additional short term promotions may popup.
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2 year Contract is Costly
Two year contracts have been the norm in the US for years. If you wanted the latest phone, you would typically pay $199 and sign a 2 year contract. The phone's cost was heavily subsidized. A typical phone costs $649, so $450 was baked into your monthly bill. The problem is that after you finish paying off the phone in 2 years, your monthly bill would not fall. This makes it a BAD deal if you do not upgrade to a new phone after finishing your 2 years.
With the new installment plans like Verizon Edge, you pay for the phone every month and once paid off, your monthly payments decrease.
Upgrading early with a 2 year Contract
With a traditional 2 year contract, a user wanting to upgrade to a new handset would have to pay the following:
- You need to pay off the current phone’s remaining balance
- Pay $649.99 or full price instead of $199 for the new phone as you are not eligible for upgrade discount
- Sign another 2 year commitment
If you just cancel your 2 year plan without fulfilling it:
- If you cancel a contract, you will lose your phone number
- $350 Smartphone early termination fee ($10 less with each passing month) if you decide to just terminate the contract
This is a steep price, hence the Verizon Edge Plan was born.
Smartphone Product Cycle
The cellular industry is built around yearly releases of major products. Samsung and Apple introduce new flagship devices every year. Each year, customers have to make a decision whether they want to break their contract to upgrade to the newest Smartphone.
The Edge plan allows users to upgrade every year without incurring penalties. There is always a catch, so we will examine the plan in detail. Most articles have labeled the Edge Plan as expensive and a way for Verizon to generate more revenue. Our analysis will give you hard numbers on the exact costs.
Verizon Edge Plan
Here are the main features of this Verizon Smartphone Plan:
- Get a new Smartphone after 30 days and 100% of phone paid off – must pay remaining balance to the 1 year mark. This changed in May 31, 2015. (It used to be 30 days and 75%)
- Discounts for Verizon More Everything Plans
- After 1 year, there will not be an upgrade fee
- 0% interest
- Plan lasts for 24 months
- Monthly charge for phone is full retail divided by 24 months
- Available to new customers or existing customers if they are qualified for an upgrade
- This is an installment agreement along with wireless service
- No down payment, No upgrade fee, No financing fee - If you credit is not good, you may have to pay something up front.
- NO upgrade fee, No activation fee, but sales tax is due at signup
- Need to trade in the phone in good condition or else you’ll be charged an extra fee
- When you trade in the Smartphone, you will receive nothing in return
- You will own the Smartphone after the full 24 months, before that, you are just leasing it
- If you cancel or lose the phone, you have to pay the remaining balance
- 14 day return period with a $35 restocking fee
- After you trade in your Smartphone, you can start a new Edge Plan
- Save on your monthly bill's line access cost on The More Everything Plan
Edge Up upgrade for Customers prior to 5/31/15
Customers on an active Edge Agreement before 5/31/15 can Edge Up, which is an option to turn in your existing Edge device and purchase a new device on a new Edge Installment Agreement without an upgrade fee. You must meet the other Edge Up eligibility requirements in the Edge Agreement to use this option.
- Customers who entered into an Edge Agreement prior to 6/1/14 must have paid 50% of the full retail price
- Customers who entered into an Edge Agreement between 6/1/14 and 10/15/14 must have paid 60% of the full retail price
- You must send your old Edge device in or return it to a Verizon store within 14 days of getting your new device
- Some can say the Verizon Edge ripoff is due to changing these terms
Verizon Edge Plan for iPhone 7
We will list out the charges due when you setup an Edge Plan for two of the most popular Smartphones on Verizon Wireless. Note the price of the S6 changes often and currently costs less per month.
iPhone 7 32GB with Verizon Edge Plan. This allows us to upgrade after one year. Keep in mind that promotions will cause these prices to change from time to time.
Amount due at sale:
$0 One Time Activation fee
$0 Initial fee
Sales tax on full value of phone $57 in our area.
Total due at time of sale: $57 + $0 = $57
$27.08/month installment charge for iPhone 7 32GB
Medium Plan 4GB with unlimited talk and text
Smartphone $27.08 + $20 Line Fee+ Medium Plan $50 = $97.08/month
Total due each month: $97.08 + Taxes
They increased data plan sizes in mid 2016.
Amount Paid to fulfill contract: (24 months)
$97.08 X 24 months = $2329 + $57 Initial Sales Tax = $2386.
iPhone 7 or Galaxy S7 resale value is now roughly $250 at the end of the 2 years.
Surprise – this is less than old 2 year plan!
Stop complaining. Prices have fallen. This price was $2696.76 in the middle of 2014!
AT&T Next Plan Charges about $100 less.
Caveat – you do not own the phone till 2 years have past.
After 2 years, you are ready to get another phone!
After 2 years your bill would fall to $70/month + taxes because you paid off the phone. This in contrast to a 2 year plan where the bill would remain the same.
Verizon Standard 2 Year Contract for iPhone 7 or Samsung Galaxy S7
On August 13, 2015, the 2 year plan was discontinued by Verizon. It is now available only to those currently on a 2 year plan who upgrade to a new phone. We will list out the charges due when you setup a Standard 2 year commitment for 2 of the most popular Smartphones on Verizon Wireless.
iPhone 7 32GB or Galaxy S7 32GB with Monthly Data Plan. This allows us to upgrade after two years.
Amount due at sale:
$35 Activation fee
$199.99 for the Smartphone (It does go on sale from time to time)
Sales tax on full value of phone $57 in our area.
Total due at time of sale: $199.99 + $57 Sales Tax + $35 activation fee = $342
Medium Plan with 4GB with unlimited talk and text
Smartphone Line Access $40 + $50 4GB Shared Data = $90/month
Total due each month: $90
Amount Paid to fulfill contract: (24 months)
$90 X 24 months = $2160 + $199.99 + $57 Sales Tax + $35 activation fee = $2464 or less than in Mid 2014 ($2541.99).
iPhone 7 or Galaxy S7 value is now roughly $250 at the end of the 2 years.
No Surprise – this is $78 More than Edge Plan when looking at full contract fulfillment
AT&T 2 year plan is over $200 less.
You are ready to get another phone finally!
After 2 years your bill would continue to be the same even though you paid off the phone, unlike Edge.
When is the Verizon Edge worth it?
There are specific situations where the Verizon Edge Plan is worth it. One of these situations might depend on your timing on fulfilling the contract.
- If you want to have the latest Smartphone every year
- If you plan to keep the same phone for more than 2 years
The AT&T Next Plan is far cheaper and has more situations where it is more cost effective.
Verizon Edge Plan Conclusion
Verizon Edge Plan adds more ways for Smartphone owners to upgrade to the latest technology without waiting 2 years for their contract to be fulfilled. If you are a frequent upgrader, this plan is a no brainer.
Do you have a different opinion or a suggestion? Please leave a comment below.