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Shortly after rumors of a Verizon Device Payment Plan surfaced last week, the big red carrier confirmed that it would indeed begin allowing customers to purchase a device for full retail price and then spread that out over a 12-month period. That program is now live, and thanks to a dedicated page on Verizon's website, we've got a better idea of exactly how it works.

Verizon's Device Payment Plan is open to smartphones and tablets that have a full retail cost of $349.99 or higher. The cost of the product is then spread out over the next 12 months, and Verizon also includes a finance charge of $24, which is also divided into 12 monthly payments. Customers will need to make the first device and finance payments at the time of purchase. The following payments will be added to a subscriber's monthly bill, though Big Red does note that a user can pay off the remaining balance at any time.

Verizon says that a customer can sign up for a maximum of two installment plans at once, subject to credit approval. However, each subscriber can only have a total installment plan balance of $1000, which puts a bit of a limit on what customers will be able to do with the Device Payment Plan. For example, the $1000 limit makes it unlikely that a customer will be able to just snag two brand new phones as soon as they're released and put them both on installment unless he or she makes a sizable down payment.

There's also some good news today for those Verizon folk that are still clinging to their unlimited data plans. Verizon has confirmed to Droid-Life that subscribers with an unlimited data plan are still able hold onto that plan so long as they purchase their phone for full retail price, and the new Device Payment Plan is one way to do that. Big Red's full statement:

"Currently if an existing customer has an unlimited data plan, they can keep their unlimited data plan as long as they pay full price for their smartphone and the Verizon Wireless Device Payment Plan is an option available to them."

Being mobile nerds, the desire to upgrade to newer and flashier hardware can strike well before we're upgrade-eligible. Not everyone can afford to fork over the $500 and up price tags that full retail devices feature, though, and so that's when Verizon's Device Payment Plan could come in handy. That's especially true for those Verizon subscribers that refuse to let go of their unlimited data plans. Verizon's Device Payment Plan is now available, so if it sounds like something you'd like to take advantage of, you can give your friendly neighborhood Verizon sales rep a visit to see if you qualify.

Via Droid-Life (1), (2), Verizon Wireless

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25 Reactions to this post

"Would you take advantage of Verizon's Device Payment Plan to pick up a new piece of hardware before you're eligible for an upgrade?"

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Jonathan Grimes Think of it this way! I pay an extra $8.19/month in interest on top of my car payment so I don't have to pay for it all up front, and I'm thankful for that option. This is the same thing! Are people protesting banks for loaning money in exchange for interest dollars, or posting angrily on an online bank forum? No, because they are used to it and expect it when going to buy a car. This will be the same thing one day, but it's new and people don't like change. A long time ago people that could buy cars or anything that was considered a luxury paid for it up front, and the people who couldn't pay for it up front just went without it.
Jonathan Grimes If people complained this much about financing with everything else, then no one would buy cars or houses. If you can't afford a house now, then you wait until you can buy it. If you want to upgrade now but can't afford to pay full retail, then you'll have to wait.
Itzel Jeronimo Sorry not all college students can afford to pay $880 at once -___-. haha!
Arturo Atherly Verizon is FOS!!! They over charge their customers unnecessarily. they may have the most reliable network...but nowadays if ur noe with the sub carriers then thats a moot issue!!! See how they tried to put a strangle on their customers and they customers pushed back.....Imagine if everyone did that to ALL THE CARRIERS....O_O We surely wouldnt be paying what they are charging us!! but Verizon needs to stop their fake ass eliticism, and realize that they too can come crumbling down!!!!! This fake ass VDPP is for folks who really shouldnt be paying for extra devices.....Dont fall for the hype...they just trying to lock u all into longer contracts.....Y??? BCUZ THEY KNOW THEYRE GONNA LOSE CUSTOMERS!!!
Joe Zazueta Sure why not .. it just means I can get new phones more often
Vicki Figueroa You can't ask verizon phone reps anything. They've even admitted to me that they don't get informed of anything until the day before it happens. Like new phones being released etc. They keep their employees in the dark so there won't be info leaked before they want it to be.
David DiPilla see t-mobiles phone plain is 20 a month for 24 months and you get lower priced plains Verizon is only doing 12 months so at that rate would be around 30 dollars a month on top of your plain they should alteast drop the price of your plain if your going to do this its not saving any body money thats to much money lol verizon your not making anything better if you really think about it its makiing us spend more money
David DiPilla their would be no point in doing this just wait for a upgrade why pay more
David DiPilla ya you know how t-mobile you have to pay full price for their phones but their plain is cheaper if verizon is not doing that then it will just make them get more money and make is more broke
Kenneth Li it's a freaking phone, if you cant pay it all at once, you cant afford it! haha
Hugo Garcia Verizon is just doin dis because t-mobile is doin it successfully
Andrew Bissel Not on Verizon. Bills for the plans and the absence of unlimited data is a turnoff. I left them last week for T-Mobile and I couldn't be happier
Matthew Mascarenas Not a chance.... Wait a couple months and buy on eBay or Swappa.... The payment plan on a $699.00 phone is about 60 a month... We pay a lot already!! I don't need the latest and greatest right away... But, to each their own.... Matt
Abram Wenevermet Dennis Sams club is the best place 2 upgrade.
Itzel Jeronimo Not always. I bought the iphone 5 32gb for $50 less at best buy than at a Verizon store.
Dale Junior I think it's good that they're listening to customers but they need ro bring back unlimited data. That will bring in more revenue by adding more customers.
CeeGii Borels yeah but any $450 phone is priced $599 at bestbuy so...
Adrienne McKenney Boylan Plus I just did online chat with Verizon and they had "no knowledge" of this!
Itzel Jeronimo If its over 250 you have 6 months
Itzel Jeronimo Go to best buy and apply for the card, if its over 450 you have 18 months with no interest.
Hans Kwazneski Uh yes. completely. great for people who don't wanna for over 600 at once lol
Joel Neil Verizon lower a bill? Good laugh
David DiPilla depends how cheap it is a month they should of did what t-mobile did but will Verizon lower their plain for people doing this cause the phone wont be at a discount price now

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