Monday, October 19, 2009

T-Mobile Equipment Installment Plan (EIP)

So I don't think many people understand T-mobile's Equipment Installment Plan (EIP) in the US even websites like engadget are showing it wrong/weird, which is why I'm going to break it down....

First of all, it depends on a customer's credit. A higher class will basically have a higher Equipment Credit Line. As of right now this maybe up $1000 in Georgia. Particularly in Georgia, there exist the 10 EIP, which means you pay for the first tenth (10%) in a CORPORATE RETAIL STORE (ONLY, NOT CUSTOMER CARE OR AUTHORIZED RETAILERS OR ONLINE), and the next 9 payments go on your (maybe 3 months from your actual purchase) with no interest, no finance, etc, etc...(basically finance your expensive phone for free!). Now remember all of this depends on your ECL.

For example, if a person has an ECL of $800, buys a myTouch ($149.99 2 yr contract price) and $50 in accessories on a 2 yr contact (with full discount, of course), then they would pay $14.99 + $18.00 upgrade fee + $5.00 (accessories) + the complete applicable taxes on your purchase. Then you would have 9 payments of $20.00 ($15 for phone + $5 for accessories) starting about 2 or 3 billing cycles from the date of your purchase. And now your available credit line (remaining ECL) is $620.01 (800 - 134.99 (phone price - the first payment you made in the store) - 45 (accessories price - first payment you made in the store)).

Things get kind of complicated when your ECL is less than the purchase price. In that case you can only finance the greatest amount of ECL and your first payment is the difference between the complete purchase price and your ECL.

For example, you buy a $350 phone (TouchPro2 on a 2 yr) and your ECL is $300, then your first payment is $50 (350 - 300) + $18.00 upgrade fee + all applicable taxes, and you will have 9 payments of $33.33 (this maybe off by a few cents, but you get the idea) to go on your bill.

You can of course change what your 'down payment' will be, you don't have to do 10%, but its default at that.

These were scenarios for EIP 10 which is default at 10%

On EIP 4, which is default at 25%
On EIP 20, which is default at 5%

There maybe more, but Georgia was a test market for all of them, and I don't think there are any more....

Well, hope that helped!

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