I'm a little lost with these leasing plans; can I keep the phone if I pay it off? I thought it was like that but I keep reading conflicting reports.
Disclaimer: I don't work for t-mobile, but I have read all the fine print. Also, my buddy works there, and I have checked with him.
You have three options when getting a phone through them. You can buy it out right, Jump!, or Jump! On Demand.
The phones can be carrier unlocked after the following is met: You have used the device on T-Mobile for 40 days, and you have paid off any remaining balance you owe on the device.
Jump! is just like any other leasing program, but it cost $10 extra a month. This $10 includes premium phone protection (accidental, left, loss, etc) and lookout premium (never would use this) their is a downpayment if you have to file an insurance claim, just like any other carrier insurance. You can upgrade once you have paid off half the device. Essentially this is a typical carrier installment plan, which forces you to go with carrier insurance. IMO its the worst deal.
Jump! ON Demand is their best deal, AND DOES NOT COST EXTRA A MONTH, and thus DOES NOT include insurance (you have to pay for that separate, $8 a month). It is available on "select smart phones" which essentially means the new popular ones. You can expect the flagship apple, samsung, htc, lg, moto, etc devices to be on this, as well as the nexus phone. It works like this: You go get an eligible phone (note 5, for example) and pay zero down4 unless you want a higher storage variant (note 5 64 gb is $100 down, but slightly cheaper each month as a result, than the 32gb...like .75 cents). You are now leasing the device for its full cost, and maybe the sales tax (you will see below this is not the case with the note 5). The monthly cost varies for each phone, and there are promotions at times. For example the note 5 32 gb is 747.39 from T-mobile. T-mobile is running a $4 credit per month, to your account, if you get the note 5 before Sept 29 or something. According to my bill, my monthly payment for the note 5 is $29 for 18 months, and then a one time fee of $177.99 if I want to own the device at the end of 18 months. Which adds up to exactly 699.99, BUT i am getting the $4 a month credit for those 18 months. Thus, if I were to keep the phone and pay the final payment of $177.99, I would end up paying 627.99. So in this case, the note 5 would be cheaper than the full price. So depending on the phone you get, you will end up paying the full cost, or less if there is a promotion, IF decide to keep the phone and pay off the lease. The BIG ADVANTAGE HERE, beyond the credit, is that once you get a phone on Jump! ON Demand, such as the note 5, you are free to upgrade whenever. You get 3 upgrades, and once you perform your first upgrade/jump, you have 2 more you can use within 1 calendar year from the first upgrade (so in this case, the phone you get after the note 5). After the full calendar year is up, you have 3 more Jumps. The only catch is you have to give them back the phone. As long as the phone isn't cracked or severly damaged, you trade in the phone and go on your marry way with the new phone.
For example, I got the note 5 32 gb currently as my first Jump! On demand upgrade from the iPhone 6+. I now have two jumps left one calendar year from when I got the note 5. I plan on using the first of those 2 upgrades next week, and jump to the note 5 64 gb (I am doing this, rather than returning the device, so that I don't have $50 restock fee). I will then have one upgrade left for the year. I can either keep the note (probably), or upgrade again one more time.
Say I keep the note 5 for one year, until the note 6 is release. At that point I will have paid $300 on the note 5, and still owe 327.99. At this point I have essentially paid for less than half the cost of the phone, kind of like if I had got the phone on contract (which would be $250-300). So with that in mind, its a pretty good deal.
Here is where it gets interesting. At this point, (assuming I want the note 6), I could Jump to the note 6, and give them back the note 5. I am out $300, which is fair for a year with a phone. Some people used to pay more than that for a higher storage variant of an iphone on a two year contract.
Alternatively, I could look at swappa and see what the note 5 is selling for. If it is selling for $500, then I could sale it, pay the paypal fee and pay off the lease, and make about $100 bucks. I will then have essentially paid $200 for one year with the note 5. If the note 5 is selling for $400...its provably note worth the hassle, and Ill just trade in the phone and jump.
On At&t you pay more a month and don't have the option for mutliple upgrades.
If you keep the phone for a full year, Jump! ON Demand is only a better deal, than At&T for example, if there is a promotion running (like the note 5, or the current iPhones on T-mobile).
If you like to upgrade a lot, you will have the option to upgrade 3 times a year, or every 4 months. This is were Jump On Demand makes the most sense. At the least it saves you the hassle and risk of selling your phone every so many months, and at best it saves you money (if your phone isn't selling for enough compared to what you paid).
I personally used to go through phones like crazy, so in theory this plan is a great deal for someone like me. I blame Samsung for making a phone that I very well may keep a full year!
I hope this made sense. I didn't proof read, and it was long winded.