Whether you’re a new customer signing up for your first plan or a seasoned AT&T user looking to upgrade your phone, it’s important to fully understand the legalities behind AT&T’s terms and conditions (T&Cs) before purchasing a new phone. Those flashy trade-in discounts and buy one, get one (BOGO) deals often have some sneaky strings attached, which could keep you tethered to Big Blue for quite a long time.
We’ll get into more detail below, but the most pertinent high-level T&Cs you need to know are as follows:
- Financing a phone requires a 36-month commitment to AT&T.
- Early cancellation of a plan tied to a financed phone can result in termination fees of up to $325.
- BOGO and trade-in deals apply monthly bill credits to equal the cost of the free second phone over the full financing term—you don’t just get the phone for free upfront.
- You can pay to join AT&T’s Next Up or Next Up Anytime programs, which allow you to upgrade your device before paying it off completely.
As always, the devil is in the details. So, let’s dive a bit deeper into AT&T’s contract language and what it means for you.
AT&T's terms and conditions at a glance
Whether you're buying a new phone, trading in an old device, getting a BOGO deal, or taking advantage of a discounted phone, the most important thing to know is that you need to follow the deal guidelines strictly—because AT&T will hold you to them.
AT&T's terms and conditions
- Discounted
phones - What AT&T says:
You can get a really fancy new iPhone or Samsung Galaxy for next to nothing. - What this means for you:
Your free or discounted phone requires you to stay with AT&T 36 months. Why? The cost of the discount is applied to your monthly phone bill (more on that in the deals sections below), so to get the discount, you’ll need to stay on your phone plan for the 3-year term. This is how AT&T can keep your phone plan contract-free, but still tie you to a device contract instead. - If you want to leave AT&T before your phone agreement is complete, you will need to pay a termination fee to be able to take that device to another carrier. Before you commit to such a deal, just make sure you're good with the buyout price—which is the remaining full retail price.
- You will also need to add your discounted phone to an eligible unlimited plan.
- Ideal for:
- Those who don't need the latest and greatest device and know that AT&T's service works for them.
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- BOGO deals
- What AT&T says:
- You will get two phones for one low price.
- What this means for you:
- As some customers have pointed out on Reddit, AT&T’s BOGO deals are not necessarily buy one, get one free. Rather, AT&T offers a steep discount on the second phone, but only via an installment agreement of 3 years tied to one of their (expensive) unlimited plans.
- To qualify for a BOGO deal, you will need to finance both phones and add each one to an eligible plan. You will then make two full payments on the second phone before you begin to see credits applied to your account in the amount of the phone's installment payment. Those bill credits will eventually (after 36 months) add up to the cost of the advertised discount on the second phone.
- If you cancel one or more lines before your 36-month installment plan is up, those billing credits will become null and void—and the cost of both phones will become immediately due.
- Ideal for:
- Those who like AT&T’s coverage AND are already shopping for a second phone. If you’re looking at getting phones for you and your partner, or for the whole family, you’ll still be saving a good deal even after making a couple of payments on a device that you would have otherwise purchased in full. And if you don’t mind being tied to AT&T for 36 months, it’s a win-win.
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- Trade-in deals
- What AT&T says:
- Get a credit towards the purchase price of a brand-new device from AT&T when you trade in your old phone.
- What this means for you:
- You will get a quote for the trade-in value of your current phone, which will depend on several factors, such as its age, model, and condition/usability (after all, AT&T likely wants to resell it as a refurbished model). You will then need to send it in to AT&T before receiving your credit, so that AT&T can determine whether the device is exactly as you stated. If so, the carrier will confirm your credit; if not, it will give you another quote for a lower amount.
- The important thing to note here is that once you've sent in your phone, there is no going back. AT&T will not return your device to you for any reason.
- The credit AT&T offers will go toward the cost of a new device. Often AT&T will advertise very high trade-in discounts, sometimes equalling the entire value of a new phone. This is often only if you are trading in one of the latest phone models (like last year’s iPhone, for example) in excellent condition. Otherwise, your discount will likely be lower.
- Trade-in deals are also tied to 36-month installment agreements. Like with BOGO deals, you must sign up for one of AT&T’s unlimited plans and accept monthly bill credits for three years to take advantage of the full phone discount.
- Ideal for:
- Customers who currently own a relatively newer phone model in excellent condition, and can therefore get the highest trade-in value that AT&T is offering. You should also be comfortable not having a "backup phone," since you'll need to turn in your current device in order to get your new one.
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- Installment
plans - What AT&T says:
Purchase your phone over time with low monthly payments. - What this means for you:
- Rather than shelling out $1,000+ for a brand-new device, you can instead finance your phone in monthly installments—much like you would finance a vehicle. Unlike vehicle financing, though, AT&T doesn’t charge an interest rate. You do have to undergo a credit check, however, to ensure that you’re not a risk for defaulting on payments.
- After your device is 100% paid in full, you can upgrade to a new phone if you choose. If you prefer getting a new phone on a more frequent cadence, you can subscribe to either of the carrier’s early upgrade programs:
-
- AT&T Next Up costs an extra $6 per month and allows you to upgrade once you’ve paid at least 50% of the device cost.
- Next Up Anytime costs $10 per month and allows you to upgrade your phone at any time after making a single payment towards it.
- Ideal for:
- People who want a new, expensive device and don’t want to pay full price upfront. The Next Up and Next Up Anytime programs are good choices for those who always want the newest device models after their release.
AT&T phone financing, trade-in, and BOGO terms
Whether you want a new device for yourself or a family member, you need to know that AT&T’s discounted phones come with some stipulations.
First of all, most discounted phones require you to sign up for an unlimited data plan. These are generally good plans, but they aren’t cheap. If you cancel your plan before the deal’s allotted time frame, you will need to pay an early termination fee (more on that below) and the cost of the device in full.
If you're interested in finding out more about how you will be billed for an AT&T plan, check out our AT&T billing guide—and you can always contact AT&T’s customer service.Device installation plans
If you can't (or don't want to) pay for your device in full when you switch to AT&T, then you can simply finance your new phone—they'll give you 36 months to pay off your device. Here are some important details:
- AT&T's basic installment plan is 36 months.
- You don't have to wait out the full 36 months—you can pay off your device at any time. However, you can’t incrementally pay more than your financing terms in order to lower your monthly payment.
- Depending on your credit, a down payment might be required.
- If you cancel your service before your device is paid off, the balance will become immediately due.
- Once you pay down at least 50% of your device, you’re eligible for an early upgrade (see below).
- You have 14 days from the date of purchase/shipment to return your device for a refund—AT&T will charge a restocking fee of $45 to your account.
Normally, you can upgrade only when your device is paid in full. However, AT&T offers two early upgrade programs: AT&T Next Up and AT&T Next Up Anytime.
-
AT&T Next Up:
- Cost: $6/month
- Allows you to upgrade to a brand-new phone once you've paid at least 50% of your old phone's price.
-
AT&T Next Up Anytime:
- Cost: $10/month
- Allows you to upgrade your device at any time, provided you’ve made at least one device installment and one Next Up Anytime payment.
- Limits you to a maximum of three upgrades in a 12-month period.
For either program, your account must be in good standing, and you’ll need to turn in your current device (in functional condition).
Phone trade-in terms
Many of the best phone deals that you see from AT&T will require an eligible trade-in of an old device, as well as activating the phone on one of AT&T’s premium unlimited plans. For the best chance of maximizing your trade-in value, your phone must also meet the following criteria.
- Your device must be unlocked and paid in full.
- It must power on and off.
- The screen must be intact, free of chips and cracks.
- The device body must be free of cracks, chips, and damage.
- The battery must be included.
- Your phone cannot be jailbroken.
- If you have an iPhone, you must disable Find My iPhone.
- Your device must be wiped and reset.
AT&T will send you a prepaid envelope, after which you’ll have 14 days to complete the trade-in. If the phone is not in the condition you specified at the time of generating your initial quote, AT&T reserves the right to change the final quote without notice. Once you send your device in, AT&T will not return your device for any reason—even if it means you're getting nothing in return.
Your trade-in discount is applied to your monthly phone bill as a statement credit over 36 months. If you cancel your AT&T plan during that time, your trade-in deal is voided, and you’ll be responsible for paying the total cost of the phone.
BOGO deal terms
From time to time, AT&T offers buy one, get one (BOGO) deals to celebrate new releases and clear out older stock. Read the fine print carefully before making a purchase, as these deals can be more complex than others.
Many customers interpret BOGO as “buy one, get one free.” This isn’t actually the case. Rather, it’s often “buy one phone, get the other for $800 off,” which may or may not add up to the cost of the second phone in its entirety.
Like with trade-in deals, BOGO deals require a 36-month installment agreement, and you get a billing credit applied to your statement each month. Other details to consider include:
- To qualify, both wireless numbers need to be on the same account.
- You must make 2-3 payments on both devices before your billing credits kick in.
- You are responsible for paying the full taxes on both phones, plus an activation fee of up to $35 per phone.
- You need to finance both phones and activate them on eligible plans (usually unlimited data plans).
- If you cancel service on one or both lines, your billing credits will stop and you’ll have to pay the early termination fee for both phones (more on that below).
- You have 14 days from the date of purchase/shipment to cancel without penalty; however, a $45 restocking fee per phone will apply.
AT&T’s early termination policy
When you purchase a discounted phone from AT&T (via a trade-in, BOGO, or other kind of deal), you must agree to remain on your eligible plan for a specified period, which is currently 36 months. If you cancel your service early, you’ll have to pay an early termination fee (ETF).
It’s important to note that an ETF doesn’t apply to canceling the plan itself—AT&T no longer requires plan contracts or penalizes you for switching “early.” But it DOES apply if a financed phone is associated with that plan—essentially, the new version of cellular contracts.
AT&T’s early termination terms are as follows:
- If you're within 14 days of your device’s purchase or shipment date, you can simply return it to an authorized AT&T store for a refund (or ship it back to the carrier)—an ETF will not apply. You will, however, need to pay a $45 restocking fee.
- If it’s been more than 14 days from the start of your service and you cancel your line, you must pay a $325 early termination fee, minus $10 for each full month of your completed service commitment.
- For example, if you’ve been on your plan for 12 out of the 36 required months when you cancel, you’ll owe $205 ($325 minus $120).
The early termination fee does not apply to devices that are financed via installment plans at full price. For those, you’ll just have to pay the remainder of your balance when you cancel.
As always, if you have more questions about this termination fee, or any of AT&T’s other terms and conditions, you can contact the company directly.The best AT&T phone plans
Whether you’re going for a discounted device with a trade-in or a BOGO deal, you first need to know which plan you're going to get. We can help you out there. Some of our favorite unlimited plans from AT&T include the mid-tier Extra 2.0, which offers a generous 100GB premium high-speed data allowance, along with a hefty 50GB mobile hotspot allotment that can power your other devices while you’re on the go.
Here are the most popular AT&T plans currently on the market.
|
#1
|
AT&T
Value 2.0℠
$120.00/mo
+ $140 Upfront
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#2
|
AT&T
Extra 2.0℠
$160.00/mo
+ $140 Upfront
|
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#3
|
AT&T
Premium 2.0℠
$200.00/mo
+ $140 Upfront
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While you’re browsing plans, check out some of AT&T’s current phone deals, including trade-in offers like those described above. You can score a serious discount on a new iPhone, Samsung Galaxy, or Google Pixel device.
Lauren Hannula
Managing Editor
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