# Costco, is it a sale or lease?



## Anewman (Jan 17, 2006)

Saw that they had the R-15 for $85 today, display mentioned if you are existing customer to pick and go pay at register. If you are not a current member, go to wireless counter and setup free install.

So if I pay cash at the register will it show as a lease if ever installed?


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## Anewman (Jan 17, 2006)

Will directv have any way of knowing when it was "purchased" at costco?
Does it matter?

What is the new policy, anything activated after March 1st or anything Purchased after March 1st is now a lease?


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## tbeckner (Oct 26, 2001)

Anewman said:


> Will directv have any way of knowing when it was "purchased" at costco?
> Does it matter?
> 
> What is the new policy, anything activated after March 1st or anything Purchased after March 1st is now a lease?


I would call DirecTV and after you get your answer from the first level CSR, you might ask for a supervisior.

I would bet that it is going to be a lease, but it is confusing.


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## Diana Collins (Aug 21, 2002)

According to my sources, as of now, any receiver activated is assumed to be under the "lease" plan. To own the receiver you have to prove that you purchased it either before March 1 (in which case you are under the old commitment rules) or that you paid an un-subsidized price. At $85 on March 7th, that R15 would be activated under the so-called "lease" program.


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## PrimeRisk (Dec 16, 2002)

Yeah, it's funny how you still get to pay the price and now get a 2-year commitment...but you don't own the equipment and you have to pay a monthly lease fee. Glad I picked up a spare unit a bit ago.


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## Tonedeaf (Sep 24, 2004)

So, for those of us that have spare receivers, if the receiver had been connected preivously on the account and since deactivated. I think that would be enough proof that they are in fact owned correct?

Just want to make sure for when I need to activate 1 or more of my owned receivers down the road.


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## Diana Collins (Aug 21, 2002)

Reactivating previously activated receivers will be treated as owned equipment, *if they were active on YOUR account.*

Activating used hardware purchased from a third party will likely be activated as a lease by default. You'd probably need to argue a bit to get it treated as "owned".


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## Kobe8 (Nov 1, 2004)

Anewman said:


> Saw that they had the R-15 for $85 today, display mentioned if you are existing customer to pick and go pay at register. If you are not a current member, go to wireless counter and setup free install.
> 
> So if I pay cash at the register will it show as a lease if ever installed?


The Costco I go to had the H20 for $99 and there was a sign below it describing the price as a lease fee. I picked up a H20 last month for $169.99.


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## LlamaLarry (Apr 30, 2003)

Dan Collins said:


> Activating used hardware purchased from a third party will likely be activated as a lease by default. You'd probably need to argue a bit to get it treated as "owned".


Not directed at you, but that is seriously messed up.

Unless the originator of the box was DirecTV after March 1, 2006 I just can't wrap my head around *why* they would treat any other box as a leased unit, but particularly those that have already satisfied the conditions of their original subsidy requirements.

If Person A buys a HDVR2 in 2004 and keeps it for his one year commitment, the box is now "Free and Clear". Why would that change if Person B acquires it and tries to activate it now?

I have no issue with extending Person B's commitment, but just seems that DirecTV should be better able to figure out a box that came from them under Lease conditions (either direct from them or via a subsidy) vs an owned box from any source.


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## Diana Collins (Aug 21, 2002)

You are thinking about this as something that actually IS a lease. The so-called "lease" plan is nothing of the sort. It is simply DirecTV taking title to all subsidized hardware. 

Prior to March 1, had you purchased that used receiver, you would have been subject to a 2 year commitment, even if the original owner had already fulfilled their commitment. The point, and the only difference after 3/1, is that since ANY box sold prior to 3/1 was subsidized, activating it now requires a commitment AND the box becomes the property of DirecTV. They might even say that if you want to own it, you can pay them back for the subsidy cost (say $200), and then it will be yours, with no commitment.

The so-called "lease deal" is simply a way for DirecTV to be able to recoup hardware subsidy costs, thereby lowering the net Subscriber Acquisition Cost.


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## LlamaLarry (Apr 30, 2003)

Dan Collins said:


> The so-called "lease deal" is simply a way for DirecTV to be able to recoup hardware subsidy costs, thereby lowering the net Subscriber Acquisition Cost.


Now that actually makes sense to me and I agree with everything you said.

After I have met my commitment and wish to separate who keeps the box? Is the answer different if it is owned or "leased"? Is the answer different if I fail to ensure that an owned box is flagged correctly 2 years hence?


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## Diana Collins (Aug 21, 2002)

If the unit is listed as "leased" you are expected to return it to DirecTV. We'll see in a couple of years how strict they are about that for subscribers that have fulfilled their commitment.


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