Codename: Phone Deception
Fellow Dollar Detectives,
I was watching TV when a T-Mobile commercial came on about getting a free phone on them by trading in a phone. This had me thinking, "There has to be a catch because high-end phones go for at least $1,000 nowadays."
As Dollar Detectives do, I decided to investigate and chose to look at similar deals with my current carrier, AT&T. Here is what I found:
What’s the Deal?
The deal at AT&T is for getting a new Google Pixel 9 Pro XL free with a Pixel phone trade-in of any year and any condition. Sounds good so far, but then I decided to click "see offer details." Under this section, there is much more information, but the main takeaway is that there are three requirements for qualifying for this offer. They are trading in an eligible phone, being on a specific phone plan, and monthly bill credits. Let us dive deeper into these requirements.
Eligible Phone Trade-In
The offer does honor its promise that it will accept a Pixel phone of any year and any condition. It lists all of the Pixel phones from the very first Pixel to the Pixel Fold. It also boldly states that it will accept phones in any condition. If you do not have a Pixel phone, there are also eligible trade-ins for iPhones or Galaxy Phones with a minimum trade-in value of $35.
Specific Phone Plan
Here is where things start to be less than what they seem. To qualify for this deal, you must be eligible for a 36-month 0% APR Installment plan, where you will pay between $29.17 and $38.34 a month. This means you're committing to a 36-month payment plan, and the 0% APR depends on your credit score. This is essentially a contract, and it's important to understand the financial commitment you're making.
Monthly Bill Credits
The bill credits are where the deal finishes, telling you what it really is. The bill credits start 3 bills after the trade-in is completed and you will be penalized if you change phone plans, phones, or cancel service altogether. If any of the previous things occur, you will owe the remaining balance on the installment plan for the device purchased. For new lines added to your account, if you cancel the lines you had before within 90 days of activating the new line, the bill credits will also stop. These penalties are similar to the early termination fees they used to have, and we might as well say they are.
How I Buy Phones
My family is deeply ingrained in the Apple ecosystem, and I am talking about Apple everywhere. We used to purchase a new iPhone yearly from our phone carrier, but then we decided to purchase directly from Apple. By staying just one phone behind, we can trade our current phones for the newest ones and pay the difference. This way, we always own our phones outright and pay for the phone plan with the carrier, giving us the flexibility to switch carriers if we ever feel the need. And before you ask, we save for this planned expense in a sinking fund, ensuring our budget remains flexible.
Final Thoughts
From my investigation, I discovered that the deal at AT&T for receiving a free Google Pixel Pro XL with an eligible trade-in was more complex than just trading in a pixel phone and then receiving a brand-new Google Pixel Pro XL in return. The eligible phone for trade-in was truthful. Still, I had to dive deeper to uncover specific phone plans and monthly bill credit requirements. These last two requirements require a 36-month installment plan and penalize you with a loss of credits if you decide to change phones or cancel service. I am not a phone deal expert, but this comes off as the modern-day phone contract.
That is all for today Dollar Detectives, keep sleuthing those dollars!