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Ever read the Equipment Lease Addendum?

Discussion in 'DIRECTV General Discussion' started by tkrandall, Apr 27, 2010.

  1. The Merg

    The Merg 1*

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    Hmmm... That's interesting news... The last we heard was when DirecTV altered their policy regarding replacements of owned receivers. It had been that you would just pay shipping and would get a leased box with a new commitment. Then it went to the now current policy where you were basically SOL. If what you say works, that will definitely help people out. I don't see why someone would object to that since if the box is not working, there would be no reason to hold onto it.

    - Merg
     
  2. Rich

    Rich DBSTalk Club DBSTalk Club

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    I've had some conversations with MDU dwellers who were forced to buy and own their HRs and they all said they paid over $400 for the HRs. And most of them were disappointed in how little they got for them at auction. The last one I bought only cost me about $130 + shipping.

    On the other hand (I don't doubt you, just trying to understand), I've never heard of anyone getting an owned HR new from a retailer for the same price as the lease fee. Where did you buy them?

    Rich
     
  3. Rich

    Rich DBSTalk Club DBSTalk Club

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    But if you have the Protection Plan, you get an owned HR back. And if you push the PP hard enough, they will refer you to the CMG and they can give you the model you want, if it is available. I doubt that you could get a 24.

    Rich
     
  4. susanandmark

    susanandmark Godfather

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    Yes, that is true now, and has been for the past couple years, but was not prior to (I think) 2006. The receivers sold now as "leased" in big box stores, were/are the EXACT SAME PRICE ($199 HD DVR) as those sold as "owned" in years past for $199.

    Plus, since we're talking YEARS later, that's pretty funny since most consumer electronics have come dramatically DOWN in price (TVs, DVD players, Blu-Rays) during that same time. So not only does DirecTV gouge with their bogus, crappy "lease" model (and still charge upfront and monthly fees), but they also maintain the price for, essentially, the same unit, unlike just about EVERYTHING else in my home theater set-up.

    And before anyone talks about incremental upgrades, like hard drive sizes, which are just about all that has changed since the HR-series came out (minus REMOVING the OTA feature), when most manufacturers come out with a new, say, Blu Ray model, it can do more and costs LESS than the previous one. Oh and, when you're talking Blu-Ray you're also talking about a product that needs software updates, just like an a DirecTV receiver, and yet I OWN my Blu-Ray player(s). I don't rent them from LG and Samsung, in order for them to maintain service and product development (sheesh!).
     
  5. Rich

    Rich DBSTalk Club DBSTalk Club

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    I thought the leasing program was a plus for D*. My wife's got an accounting background and she agreed with what they did. Said it would increase their "worth". But I do think it's time has passed. Not that D* is gonna stop sucking every cent they can out of you. :)

    Rich
     
  6. susanandmark

    susanandmark Godfather

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    If DirecTV wants to lease their equipment for $5/month, there should be no upfront fee. We don't own it and they force return. Then the "rental" fee seems fair.

    If they want to sell equipment for $199 ($99 or whatever) then they should just sell it.

    Look, all of my owned DirecTV equipment was, for the most part, given away to Salvation Army when I was done using it (usually multiple years and it was now outdated). I got, at most a $20-$30 tax deduction back for them. I think I sold one DirecTivo on eBay, way before HD, and made maybe $100. So, it's not like I was profiting. I just hate the gall of saying I "lease" something I bought for the same price, two months after I "bought" the same item at the same price. And then telling me that "leasing" is a "service" for my benefit.
     
  7. BAHitman

    BAHitman Godfather

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    ooh, no, we don't want that... then DTV would end up like cable, and a DVR "rental" fee would be $18/mo, with no upfront fees
     
  8. Rich

    Rich DBSTalk Club DBSTalk Club

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    And we both have to pay that same fee for our owned HRs. Gotta admit I've never understood the upfront fee. I understand it from D*'s point of view, but, certainly, not from my point of view. I would imagine that part of that upfront fee you pay to retailers goes to the retailer for selling them, but if you get one from D* directly that argument flies right out the window.

    Don't get me wrong, I agree with you completely.

    I wish I would have known back then that you could "buy" and "own" your HRs. I would have happily bought a couple.

    Leasing is a service (poor choice of words for the point I want to make) that puts money in D*'s pockets. I've never seen any benefit that we derived from the leasing plan. Has anybody? Perhaps it helps keep our sub fees down, but I doubt that D* did it for that reason.

    Rich
     
  9. CCarncross

    CCarncross Hall Of Fame

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    HD DirecTivos were anywhere from $500-$1000 initially....they were never ever $199 to own back in the days b4 leasing...
     
  10. Rich

    Rich DBSTalk Club DBSTalk Club

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    Good point. Just called Cablevision and they charge $9.99 a month for a single tuner (that's the only DVR they have) DVR. That would cost me over a hundred dollars more a month for my setup. Damn good point!

    Rich
     
  11. Rich

    Rich DBSTalk Club DBSTalk Club

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    A few months ago, I got a CSR really confused and he thought I wanted to buy one outright and quoted me a price of $570. Don't know how he arrived at that figure.

    Rich
     
  12. futureformercsr

    futureformercsr Cool Member

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    The computer system automatically generates the cost for owned status equipment, so the figure quoted came right out of a database when he/she clicked the button for owned status offers.
     
  13. Rich

    Rich DBSTalk Club DBSTalk Club

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    Kinda figured that, but I still don't understand why he even brought it up. Was an interesting figure when you consider that you are charged a bit over $400 if you don't return a deactivated receiver. But I guess that was the price for a brand new one, and yet it exceeded the price of the 21-Pro. How come?

    Rich
     
  14. The Merg

    The Merg 1*

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    I believe when the HR20's first came out that was right before the leasing model began and you could purchase them. However, DirecTV would have been losing a lot of money on those selling them at $199.

    And yes, while technology has improved, it is those upfront lease fees that allow DirecTV to continue to improve their HR2x line and thus produce the HR21/22/23/24. While the hard drives might not have changed much, there are many other inner workings that have changed over time. Just take a look at each of the First Looks.

    And as stated, if there are not the up-front costs, the monthly fee would be that much higher. In the long run, paying an up-front fee is usually always cheaper.

    - Merg
     
  15. The Merg

    The Merg 1*

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    True, but I was using the case where someone has owned equipment and no Protection Plan.

    - Merg
     
  16. Newshawk

    Newshawk Hall Of Fame

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    Broken...
    Don't forget that with that $199 purchase fee (pre-March 2006) there came a 24 month commitment.
     
  17. Rich

    Rich DBSTalk Club DBSTalk Club

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    If memory serves me, the leasing program started in March of '06 and the first HR20-700s were released in August of '06. So, unless you were willing to shell out substantially more than the lease fee, or lived in an MDU, I don't quite understand how you could buy one for the same cost as the lease fee. Not trying to start an argument, but I don't see how you could do that. Well, I am arguing the point, but not maliciously. Or with intent to offend.

    Rich
     
  18. futureformercsr

    futureformercsr Cool Member

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    assuming $570 is cost to D*

    $570
    -$199 lease cost
    If receiver not returned $250 non return charge

    D*still eats $121 on each box not returned. Once refurb costs are figured in for keeping receivers in the lease pool the whole equation changes to their favor, which is why leasing is good for them....It's good for consumers too because we don't have to pay $570 every time our hddvr's hard drive fails.
     
  19. susanandmark

    susanandmark Godfather

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    The DirecTivos started at $499, then dropped to $299 pretty quickly. I had three. The original Tivos were much more. The DirecTivo HD units were somewhere in the $300-$500 range upon release. I don't know, exactly, but know I paid $1,400 for a unit with an expanded hard drive. Ouch!

    The HR-200 receivers were sold, at Best Buy, for $199, as owned units. The next year they were sold, at Best Buy, for $199, as leased units.
     
  20. susanandmark

    susanandmark Godfather

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    Your point? It still does. And, back then, the commitment was not (always) enforced. I know because when I activated new receivers back then I asked to have the commitment waived and it always was since I was a "valuable customer." (Apparently, DirecTV made the calculation that customers were no longer "valuable" at some point. But, anyway, the boards at that time were rife with reports of people getting out of the commitment just by asking.) As it turned out, I stayed anyway, but I don't like people telling me I have to, especially as an already long time customer. Keep me with your service, not a Draconian legal document.

    Look, if you think the DirecTV lease model is great and all that, good for you. But what DirecTV did is change from a no-contract, owned equipment service provider to a "lease" model, charging the same upfront fees and monthly costs ($5/month, $199 for HD DVR), with no benefit to the customer. So, you own nothing and you agree to pay them for two years, plus the costs of equipment, for that privilege.

    Would anyone buy a TV with that deal? 'Get the new Sony, only $2999 and $15/month for two years ... Oh and, after that we're gonna' need that TV back.'

    Heck, Tivo is going under based on its subscription model. (They're trying to diversify and sell the technology directly to companies, a la Comcast or DirecTV.) The vast majority of people don't want to buy equipment and then pay a monthly fee on top of it.

    If this is how DirecTV chooses to do business, that's their choice, of course. What shocks me is how customers just roll over and take it and then defend the company even, despite blatantly customer unfriendly practices. As consumers we only hurt ourselves when we accept, and even praise, business practices designed solely to line a company's product (and, in fact, hurt the customer) and dwindling service and support.

    No other company, not even cell phone carriers, which people pretty much universally agree are greedy pigs, expect you to buy equipment up front, pay a monthly fee for service, sign a long term contract and then give the equipment back to them TO SELL TO SOMEONE ELSE, who will also have a two-year-contract, etc.
     

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