T-Mobile introduces recession-busting handset installment plan
Looking to grab a new T-Mobile handset, but can’t quite scrape together the requisite cash? Well, the budget-minded carrier has introduced a new payment plan that allows “qualified” new and existing customers to purchase new handsets and pay for them over the course of 4 equal installments. The process involves setting up a formal line of credit with the carrier that allows for repayment of the handset’s purchase price over the course of 4 months. There’s no word as to just what makes a customer “qualified” for the privilege of participating, but we’re guessing that good-excellent credit standing is a pretty solid requirement. The interesting part is that, unlike most layaway/installment plan options, T-Mobile’s plan doesn’t charge any additional fees or interest over the course of the 4 months. We assume that there’s some sort of fee incurred if you fail to make one or more payments, but for anyone looking to buy into a more expensive handset without the size able upfront cost, this is probably a pretty appealing new option. Hey, T-Mobile, this is one of the smartest things you’ve done in a very long, long time. Now let’s see if the other major 3 follow suit…
This has been available for about 60 days already! People can barely pay their bill as is, lets add on a few more hundred dollars!
Did just that last Friday. While in the process of buying the wife’s G1 online, I called with a couple of questions, and the lady on the phone offered the opportunity to break up the price of the G1 into monthly payments. Sweet!
Sprint did this in 2000-2001, the cost of the handset was divided over the life of the contract however. I payed 3x and then quit service, only to come back with the same phone 4 months later and restart service, never paying the fee for it.
So, T-Mobile ISNT the first one to do it, however, I dont think its a wise idea unless its for upgrades personally, because new customers generally get their phones less then upgrades anyway – so there has to be some minimum limit of a $199+ phone to be on the plan right? I mean, if you cant afford $99 for a new phone then you shouldnt be on T-Mobile and should be on Virgin Mobile instead.
@Andy – thats my point too!!!
I mean, sure T-Mobile is cheap (not as cheap as Sprint my opinion), but if your already with a cheap carrier, and then see an extra $50 added per month because of your new $200 phone (keep in mind your also paying FULL PRICE TAXES ON THIS TOO, so think more like $60 a month), on top of your already $48.00 plan – it really throws people off even if they know its going to be included.
Hmmm… High price phone one time fee upfront vs. high priced bill for 4 months which when you lose your job in 4 months, now your stuck paying a bill, a phone, and a 200$ cancel fee cause you restarted your contract.
Think about it !
I know a chic that just got a G1 using this method.
i just got a G1 using the installment plan, working out real nice!
Hi:
Just to clarify: T-Mobile isn’t just breaking up the cost of the phone unto 4 simple payments…
What happens is that each customer is internally rated and prequalified for a specific line of internal credit.
Let’s say you qualify for a credit line of $120…
That means, if you want a phone that costs $320, you have to come up with the difference between what your phone costs ($320) and your credit line ($120) and pay this amount ($200) up front at a corporate store or billed to your next statement. Then the remaining balance ($120) is prorated over a 3 month window.
@RogerA: Don’t get your Sprint-soaked panties in such a bunch. It’s just another alternative which does not effect you, but may benefit some. It’s not a trap unless a consumer does not think thru their purchase and circumstances. Move on, troll.
If you can’t pay for a phone up front, you shouldn’t have one. Period.
Just in case anyone is wondering how it breaks down…
Your limit is between 120$ and 500$ and it can be used for all phones and accessories over 20$.
Two examples. I buy a g1 and have a limit of 500$. My purchase is divided by 4 and I pay one payment plus all the taxes up front. The additional 3 payments are on my next three bills. In this scenario, I would pay 45$ plus tax.
I buy a g1 with a limit of 120$. The g1 is 179.99 so my three bill payments equal 120, with me paying the remainder plus taxes up front. I would pay 60$ plus tax.
If you go into debt to buy a mobile phone, you are a moron.
You can do this for free now. Whenever I get a new phone from T-Mobile, I pay half my next bill, then half the next bill then the 3rd bill is usually about the same as the payment you made the first 2 months. Somewhere towards the end of the 2nd month they send a text message and leave a few voice-mails, but they won’t disconnect you since you are making payments at least until after the 3rd month. Result: Interest free new phone, not even late fee’s.
People who need to pay this way are the same who just lost their $500k house because they were making $30k/year.
@backbeat – Troll?
What have you contributed to the site? Oh, Im sorry I happen to know history of things a little more, and I WAS a T-Mobile customer for 5 years till they tried to tell me that my QUAD BAND SDA was getting less reception then buying a new phone that cost 3x as much.
And as for my “Sprint soaked panties” all Im saying is that if people are on T-Mobile as it is, their phones are already cheap enough with a contract that any idiot can get one.
So whos the troll now!?
This is a great option.
Posted from BGR Mobile (iPhone) at: Troy MI, 48098
#RogerA: I’m sorry to hear that you’re among the throngs of TMo “victims”. [
] Ever heard of updating the cell radio in order to continue quality reception on a phone and keep it on a par with updated towers? Of course not, as just made perfectly clear. TMo was right, just as any carrier would have been with the same scenario.
When did you obtain the judicial and economic credentials to determine what the general population [the general population you refer to as "idiots"] is capable or incapable of affording?
Who’s the troll? Got a mirror? Understand how to operate it?
this has been available since last june.
QR
You know what… your right, I am a troll. Thanks for feeding me!
^Same is done for pigs just before the holidays. No problem.
this is a decent option to buy phone in MSRP
I told a co-worker can use this option to get sidekick, to replace the broken SKiD, she is interested
I don’t know why people are freaking out about this. It’s simply a service that T-Mobile offers if the customer wants it. Chances are that people who are upgrading are already calling ready to part with their money anyway.
How can it possibly be compared to people earning 30k and losing their 500k houses?
How is this going in to debt? Don’t you usually pay interest on a debt?
Also, I assume the ones acting high and mighty have zero credit card balances, or any debt at all apart from a mortgage? No, didn’t think so.
I earn decent money and have a stable job, but when I upgrade to the Curve 8900, i’ll probably spread the payments over two or three bills.
I don’t know why people have to act like dicks…
@backbeat:
Really? Then in that case most people shouldn’t have their carrier-subsidized phones because they’re not paying for them upfront. In case you forgot, that’s what the 2-year contracts are for–for T-Mobile and all the other companies to makeup for the money they lost in providing you that free or discounted phone. Way to use logic…
*above comment @badchad instead…
lol Everybody is in everyone else pocketbooks. If this payment option doesn’t work for you then don’t you do it LOL… its as simple as that!!! And guess what if someone goes into debt paying for a phone this way then your phone will still be on and your bill paid.
Why are some people in love with being dickheads? What’s wrong with splitting the cost of a $500 phone over four billing cycles?