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Trade in value

If I have a phone with a trade in promotional value, the device balance decreases each month due to the trade in credit. If I cancel or transfer the service, does that mean I need to pay off the device balance at that time? The below text from the hints at a reversal. How would that happen, and what is the minimum number of months(not specified)?

im assuming that if I cancelled service that I would owe the device balance, decreased from the original price due to any promotional credits. Or the same as the device payoff shown in the app. Is that correct?

I don’t satisfy the conditions associated with the promotion under which I created my trade-in order, such as (but not limited to) maintaining active postpaid Verizon service on my new device(s) for a minimum number of months or changing to an ineligible Verizon service plan or paying off my device payment agreement early, or transferring my number to another Verizon account, or

Trade-in credit(s) based on promo value are subject to reversal if I don’t comply with the Special Rules.

Comments

Verizon_Support

Hello, Stevehofwash. Help is here as we can answer any questions you have regarding your Device Payment Plan and the trade in. Just to confirm, the trade in in question, did it provide a promotional amount off the phone? For example, with promo trade-ins, you will receive $800 off a phone upon sending us your device and when you upgrade, it will reduce the cost of the phone as the Device Payment plan is 36 months. If you were to cancel, you will be responsible for the remainding balance of the phone and the promo amount will be reversed since the time frame of 36 months was not fulfilled.

-Natasha

Stevehofwash

But why does the app quote a device payoff which includes the promotional credits?

Stevehofwash

I realize that you don’t get any credits after you’ve terminated the agreement. So if I had it for 2 months, the payoff is decreased by 2/36 of the original price. Otherwise, if you cancelled at the 35 month you’d owe $800.

Stevehofwash

So if you cancel, you lose all future credits. The credits up until cancellation decrease the device balance(as shown in the app device balance).

Stevehofwash

One more time with this-

if I buy a phone with a Verizon plan, and finance it over 36 months, and get device credits to pay the phone payments as part of a promotion or trade in promotion, and I:

1. cancel the plan( port out or cancel). Then the “device balance” is owed, which is the original financed amount minus any credits already received. So if the original price was 800, you either received a promotional credit or trade in credit of 800, then after 6 months you’d owe 800-6/36*800 or 666. You forfeit any future credits and the trade in.
2. I pay off the device, but don’t cancel the line. In this case, my monthly bill is reduced by 800/36 or 22.2 for the remainder of the 36 months.

Is this correct?

Verizon_Support

@Stevehofwash
wrote: One more time with this- if I buy a phone with a Verizon plan, and finance it over 36 months, and get device credits to pay the phone payments as part of a promotion or trade in promotion, and I: 1. c ancel the plan( port out or cancel). Then the “device balance” is owed, which is the original financed amount minus any credits already received. So if the original price was 800, you either received a promotional credit or trade in credit of 800, then after 6 months you’d owe 800-6/36*800 or 666. You forfeit any future credits and the trade in. 2. I pay off the device, but don’t cancel the line. In this case, my monthly bill is reduced by 800/36 or 22.2 for the remainder of the 36 months. Is this correct?

You are mostly correct. Your first point is correct, however, the second one needs a slight adjustment. The promotional credits are based on the device payment plan. Once a device is paid off, the device payment plan is no longer active and any future credits are forfeited. Does this help explain?

~Jesse

Stevehofwash

Thanks for the clarification. The “assistant” shows the payoff, and says my bill would go down by the payment for the device, which is misleading since it’s Verizon that’s making the payment, which stops when you pay it off. So after payoff, your bill is the same. I gather that you could sell the phone to someone else without abrogating the agreement, but that wouldn’t make too much sense in almost all cases.

A prior rep mentioned “reversal”, which doesn’t mean you lose the credits already received, just those in the future, so you won’t get the full value of your trade.

Stevehofwash

And once you’ve paid off the phone, you are free to cancel or change your plan without penalty(no ETF)

cchaffold

Then you need to send back the traded in phone. I have the same problem. I got 800.00 for my trade in, but I am only credited so much per month ftom that. I want to seutch services because Cerizon is so behind the times in monthly costs for the service! You need to provide the 800.00 trade in value plus what I've paid to date for the phone... then tell me what I owe!

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