Apple Offering Pre-Approvals to iPhone Upgrade Program Customers Ahead of iPhone 8

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Sep 13, 2017.

  1. Burton8219 macrumors 6502

    Joined:
    May 12, 2007
    #126
    Some people just want a new phone every year and are fine essentially renting a phone from Apple with the option to keep paying and eventually own the device. I'm one of those people.

    One hard pull every 12 months isn't the biggest deal... It drops your score 5 points AT MOST and will almost certainly correct itself in 12 months.

    I don't understand the last two points of your list, though... If you either do the 24 payments or buy the loan out early, you don't HAVE to sell it back to Apple. It's your phone, sell to the person that gives you the highest dollar amount. If Apple gives you the highest dollar amount, but it's only on a gift card, sell the gift card. It's not as bad of a program as people make it out to be... People do the exact same thing with cars every day.
    --- Post Merged, Sep 13, 2017 ---
    You pay exactly the value of the phone, since the loan has no interest attached to it.
     
  2. macduke macrumors 604

    macduke

    Joined:
    Jun 27, 2007
    Location:
    Central U.S.
    #127
  3. TeddyL macrumors newbie

    Joined:
    Sep 13, 2017
    #128

    Im in the same boat as someone who previously had sprint on the IUP and is now with T-mobile. It's pretty confusing as to how the online system is going to work to allow us to reserve our phones for in-store pickup as its multiple places and apple reps that state that its allowed and others that don't.
     
  4. rtomyj macrumors 6502a

    rtomyj

    Joined:
    Sep 3, 2012
    #129
    So why do you feel bad for these people? They extend the contract at the risk of interest, it’s their fault. They don’t finish paying it and start a new contract, that’s on them. People want options, they get options and then blame because of too many options. Also, mister econ, more options means more compition. In this case, better incentives or lowers interest rates, or even longer promotion periods. ^_^
     
  5. Jmausmuc macrumors 6502

    Jmausmuc

    Joined:
    Oct 13, 2014
    #130
    I agree with you. Thanks for the nice comparison, I didn’t even know many of these details. Especially that the screen brightness is that much lower than on competitors is pretty interesting - kind of contradictory to the news post here on MR where they said the amazing screen makes the iPhone worth its price.

    The only thing I disagreed with is that the difference between the bezels is minimal. When you look at the two phones side by side there is no denying that the X looks more modern and fresh.

    If you look at things objectively, the X probably isn’t worth the difference in price. But emotionally it is the only choice for me because I just don’t want another phone that looks just like the 6 I used to have and the 6S I use now ( I know there are some minor differences). I skipped the 7 for this reason, I just want something new. When the 6 came out I had just signed the lease for my last car. Last month, I got my new car, while my phone still looks the same.
     
  6. a.gomez macrumors 6502a

    a.gomez

    Joined:
    Oct 10, 2008
    #131
    No idea what kind of logic that is. The real solution is the same as all the other random phones made in China (all an iphone is) that make little sense... not buying it.
     
  7. lsutigerfan1976, Sep 13, 2017
    Last edited: Sep 13, 2017

    lsutigerfan1976 macrumors 68000

    Joined:
    Sep 14, 2012
    #132
    I think it depends on whether you are on a grandfathered plan or not. Cause I was calculating how much I pay now for my monthly service. And even with the discounts it is still more than what I paid before. Cause before I would pay the same amount monthly as now. And just pay $200 every 2 years for a new phone.

    Before I could pay let’s say $100 for my line. And then pay $200 for a new iPhone every two years. So let’s say my plan maybe $100 per month now. And if you finance the phone they give you a $20 price break per month. Dropping the plan to $80 per month. But it’s going cost me at least $40 a month to finance the cheapest iPhone I want. That brings the plan back up to $120 which is more than what I paid before when my old plan was $100 per month. And all you paid was $199 every two years.

    So Verizon does this sneaky thing where they make it seem as if you get a price break for financing your phone. But it comes out to more than what I paid before. If that makes sense.
     
  8. Brian Y macrumors 68040

    Joined:
    Oct 21, 2012
    #133
    Yes, it shows that a credit search has been made, but it's still not a bad thing unless you're making multiple applications in quick succession.

    It's more about frequency. As I previously said, if you make multiple applications in a short period of time, yes, it will damage your credit rating. But a check happening once a year for a phone is perfectly normal, and saying that it'll destroy someone's credit rating is just FUD.
     
  9. Cayden macrumors 6502a

    Cayden

    Joined:
    Jul 10, 2014
    Location:
    Utah
    #134
    Go read the forums on this topic. There are many that DID NOT have a hard credit pull, just a soft pull. While they may be saying they hard pull everyone, they don't. Again I'm not saying that you won't get a hard pull, I'm just saying there are many that did not have a hard pull last year when renewing their loan
     
  10. UKPoliticsGuy macrumors regular

    Joined:
    May 3, 2009
    #135
    Isn't this available for UK customers? The Barclays back-office infrastructure basically froze on launch day last time.
     
  11. gtg465x macrumors regular

    gtg465x

    Joined:
    Sep 12, 2016
    #136
    Yeah, but when iPhones were subsidized, carriers were charging about $20 extra per line for service in order to pay for the subsidy, meaning you paid an additional $480 over 2 years for service. In that sense, it wasn't actually a real subsidy since it was coming from your money. So you still paid about $680 for your iPhone 5, but $480 of that was built in to your service contract so that it would seem like you were getting a phone for $200.
     
  12. Larry The L Suspended

    Joined:
    Jun 9, 2016
    #137
    How can they afford it? Easy. Many have good incomes or will give up a few unnecessary expenses to get something they really want.

    The monthly payment is based upon the cost of the item. If you can't afford the payments, then don't get the device.
     
  13. TheShadowKnows! macrumors regular

    TheShadowKnows!

    Joined:
    Sep 30, 2014
    Location:
    National Capital Region
    #138
    Brian, I am not trying to raise FUD; and certainly I do not want to debate with you the merits or demerits of applying for a loan just to buy a phone. (Yes, the Apple Update Program is a real installment loan, fed thru your credit card.)

    If this is the only, or one of few, credit application(s) you make, then you are correct. One-a-year will not damage your rating. (But they do stay around for two years.)

    Frankly, if you are applying for an installment loan just to pay a freaking phone, what are the chances that you are applying for multiple credit cards; maybe a car lease; maybe a school loan?

    I would say they are high. And, no FUD required.
     
  14. colbertnation macrumors regular

    Joined:
    Nov 20, 2009
    #139
    You got this right, and I agree with your assessment. That's why after one year of IUP (specifically when I found out that the next iPhone would be another loan with a hard credit check), I immediately dumped that BS, and switched to my carrier's upgrade plan (which doesn't require me to go into a store).

    It's not technically a loan (more of a "lease"), so they don't do credit checks (since I'm already with them postpaid, and paying bills monthly, etc.). It's more of a contractual commitment to pay for the phone per month, at 0% interest. I still end up paying for 50% of the phone, roughly, but I would rather not go through the headache and spend a lot more of my time selling my iPhone at the end of the year on eBay or some marketplace in less ideal conditions for roughly 20% of the phone's value. The residual "premium" is worth it for me to stay with the carrier plan, out of respect for my time and convenience.
     
  15. M.PaulCezanne macrumors 6502

    M.PaulCezanne

    Joined:
    Mar 5, 2014
    #140
    I know it's obvious, but just wanted to point out that $56 is half-way to a car payment. Enjoy those animated emoji face things. You'll pay for 'em.
     
  16. VanillaCracker macrumors 68030

    VanillaCracker

    Joined:
    Apr 11, 2013
    Location:
    Washington D.C.
    #141
    I'm strictly comparing whether the X is worth the 30%+ increase in cost, over the 8.
     
  17. TheShadowKnows! macrumors regular

    TheShadowKnows!

    Joined:
    Sep 30, 2014
    Location:
    National Capital Region
    #142
    I agree with you. Others apparently do not. Because I got pushback, and I had not read the Apple's T&C's for this program.

    So, I went all-in and read the actual document.

    This is what I found (you can read the document yourself -- these are not "fake news"):

    1. It is an installment loan, with an upgrade path available after 12 months. (It is not constructed as a lease.)
    2. The loan is fed thru your credit card to which you are subject for monthly payments at 0% APR.
    3. This loan triggers a hard credit check.
    4. The loan does not carry 24 equal payments: the first payment pays both AppleCare+ and taxes in their totality + 1/24 of the device.
    5. If you complete all 24 payments, which includes the super-charged first payment, you own the device.
    5. If you decide to upgrade at 12 months, but decide to return the new upgraded device because you do not like it, things get complicated.
    6. This because the first installment (now made on the upgraded device) carries both all AppleCare+ plus taxes -- the refund gets messy.

    This will be my last post on this matter. Simply, to each his/her own.
     
  18. ghostface147 macrumors 68020

    ghostface147

    Joined:
    May 28, 2008
    #143
    For six bucks, might as well get the 256 gig version of the X. But I just can't get it because of the notches when in landscape. I don't mind it in portrait.
     
  19. Larry The L Suspended

    Joined:
    Jun 9, 2016
    #144
    I don't understand your complaint. Why are you trying to bash people who can afford some luxuries just because you can't or don't want to pay? I always buy my new Lexus outright every other year. But if I made payments, $56 wouldn't be close to half of a payment.
     
  20. Clawdawg macrumors newbie

    Clawdawg

    Joined:
    Sep 13, 2017
    Location:
    NorCal
    #145
    This logic applies for a one-time, long term acquisition, but not for those re-upping every year for the new phone. Let's use the 8 Plus 256GB as an example. Through Apple the monthly payment is $45.75 (leaving all taxes out for simplicity). Outright purchase is $949, but bumps to $1,100 with AppleCare+. I already have a buyer (same one every year) for my 256GB 7 Plus, at $700. This makes the effective cost of the 8 Plus in this example $400. However, since I get damage coverage through my business card I don't need AppleCare+, so net cost to me is $250. This, compared to the $550 12 month cost through Apple (and owning nothing), is a no brainer for me.
     
  21. M.PaulCezanne macrumors 6502

    M.PaulCezanne

    Joined:
    Mar 5, 2014
    #146
    I'm not complaining. Just pointing out that the price/utility ratio is off the charts. But hey, good for you! Have fun with your new toy!
     
  22. zapm macrumors newbie

    zapm

    Joined:
    May 16, 2017
    #147
    Yeah I was being sarcastic. Hence the /s
     
  23. Lax608 macrumors newbie

    Lax608

    Joined:
    Jun 8, 2015
    #148
     
  24. M.PaulCezanne macrumors 6502

    M.PaulCezanne

    Joined:
    Mar 5, 2014
    #149
    iPhones hold their value relatively well. It's become rather clear that by far the most cost effective solution is to buy them outright and sell them on the secondary market when you're ready for a new one. If you don't have the cash, no big deal. Just SAVE it until you do. The incremental updates over the last 3 versions have been minimal vs. the cost anyway. You really aren't going to miss much if you have to wait a cycle or two.
     
  25. leesweet macrumors demi-god

    leesweet

    Joined:
    Feb 1, 2009
    Location:
    Northern Virginia, USA
    #150
    To answer my own question, the last FAQ in the list for the IUP in the Apple Store App says this is only to preapprove 'Upgraders'. So, for the 8's you can do it now, since it's less than four days to preorder. I assume the same process will open for those of us waiting to preorder an X on 10/23 or so.

    It says it can't be used for 'new' applications, which I want to do to get a new phone on my other line (a new phone in the IUP totally), and that you can do that once orders open Friday at 12:01AM PT.
     

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