A content creator is putting viewers on notice: those iPhone trade-in deals that you’re likely seeing, especially those advertised by Verizon, aren’t all they’re cracked up to be.
Dan (@dadozuk), a fitness accountability coach, suggested that he came to this realization after reading the fine print of his new Verizon contract. In his post, which has amassed more than 308,300 views as of Monday, he presented viewers with “food for thought” if they’re planning on upgrading to a new iPhone in the near future.
What’s the iPhone trade-in deal?
Several cell phone carriers, including Verizon, AT&T, and T-Mobile, are offering various trade-in deals for users who want the iPhone 16. For Verizon, in particular, its website says that new and existing Verizon customers can trade in their phones—in any condition—for up to $1,000 off the new iPhone 16 lineup.
This new swath of iPhones and accessories went on the market in September.
Content creator issues warning about the Verizon deal
In his video, Dan said he wanted viewers to understand a few things about the trade-in credit. Firstly, he said, users who trade-in their old phones have to pay off said phone beforehand. After that’s done, he said, Verizon customers can get a $1,000 credit, which will go toward the purchase of a new iPhone.
But “those credits will be statement credits,” Dan warned. “You’re not just going to get $1,000 off of your phone. I want you to understand that.”
Essentially, it’s not like customers are getting a free $1,000.
As an example, Dan touted the iPhone 16 Pro Max at 256 GB, which he said is “the cheapest one.” He said his original payment plan was $33 per month. But, with the trade-in credit applied, he now pays $5.55 per month over the span of 36 months.
“But be careful. That only makes sense… if you’re going to keep the phone for three years,” Dan said. “Verizon is not dumb… They know that you probably want a new phone within the next three years. That’s where they get you.”
That’s because, if you try to buy a new phone before that three-year contract ends, you’ll still have a remainder of $400 to $600 left on your current phone. And in order to do another trade-in, you’ll have to pay off that phone first. But here’s the worst part, according to Dan: When customers do this, they’ve essentially forfeited any credit they have not yet received.
“The $1,000 credit is only beneficial to you if you keep your phone for that 36 month term,” Dan said. “Because if you keep it for any less, then you have to pay it off to trade it back in. And when you’re paying it off, you’re paying it off at the full rate.” (In other words, customers with a $400 to $600 balance left will have to pay that off at the original $33 per month rate.)
Mobile customers aren’t thrilled
As the top-liked comment on Dan’s video pointed out, this business tactic is not unique to Verizon. “That’s literally how they all work no matter the carrier,” they wrote.
Another commenter confirmed that Dan’s findings were true—but universally adopted.
“This isn’t new. It’s an industry standard. If any carrier fronted you the money for a new phone, they’d go out of business,” he said. “No more contract, but it’ll keep you as a customer.”
@dadozuk Just food for thought if you’re planning on upgrading through Verizon
♬ original sound – Dan
Because this is so widespread, many users said that they plan to keep their phones for three years.
“Yeah, I pretty much always keep my phone for 3 years,” one woman said. “Like why change it?”
“So just keep the phone for 3 years, they’re built so well now it’s easy,” another wrote.
Some others, meanwhile, questioned why people would need to buy a new iPhone each year.
“No one needs to buy $1k phones every year anyways,” one commenter wrote.
“I have the iPhone 12 and don’t see the hype in constantly upgrading,” another woman echoed. “It’s more of a hassle imo.”
The Daily Dot has reached out to Dan via TikTok comment and to Verizon by email.
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