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iPhone 5 or earlier Do you feel you’re paying less for the phone on the Upgrade Program instead of buying?
- Thread starter AppleHaterLover
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Although in a strict financial sense, the interest free loan available using the IUP makes good financial sense, psychologically, the program is a money pit. Everyone who joins it upgrades to a new phone each year, perpetuating monthly iPhone payments until they die. Most people not on the program don't upgrade their iPhone every year so they're buying fewer phones over the span of 5 years (for example) than someone on the IUP.
The IUP only defers the first year of payment (in a sense) once you get sucked into the system, but the illusion of saving money is only that. Eventually when a person comes to their senses and realizes that this program sucks them into buying more & more iPhones they'll see how they got suckered in to forking out cash to Apple every year.
When they finally grow weary of the perpetual payments year after year, they'll still have to pay off their last phone when they exit. In the end... all they'll have to show for it is having purchased way too many iPhones over the years, all at full price and essentially giving away all their perfectly good year old iPhones back to Apple for half price.
Sounds like a horrible deal to me.
The IUP only defers the first year of payment (in a sense) once you get sucked into the system, but the illusion of saving money is only that. Eventually when a person comes to their senses and realizes that this program sucks them into buying more & more iPhones they'll see how they got suckered in to forking out cash to Apple every year.
When they finally grow weary of the perpetual payments year after year, they'll still have to pay off their last phone when they exit. In the end... all they'll have to show for it is having purchased way too many iPhones over the years, all at full price and essentially giving away all their perfectly good year old iPhones back to Apple for half price.
Sounds like a horrible deal to me.
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At the time of paying off the phone can I just request cancellation of AppleCare so I can just pay the remaining phone value minus the remaining months of AppleCare? or do I have to pay the entire thing and waiting for the prorated AppleCare refund?
The full price of the phone was baked into the price of the plan whether you were on contract or not. It just wasn’t specifically spelled out on your bill as a phone payment.
It made no financial sense to pay full retail or upgrade less often than every 2 years. You didn’t have a choice but to pay for the inflated plan cost. Now you have a choice to save money by upgrading less often.
I am not involved with the program albeit I have read the agreement a few times.
I advise you to read over your agreement, as I don't want to give out the wrong information moving forward.
What is with people talking about can afford, or can't afford? What does 'able to afford it' even mean? Got your car paid off, your house paid off, no credit card bills, and a beefy 401k or other liquid assets all set and ready to go? If not, maybe you can't afford anything?
If you're clumsy and tend to break your phones (hence need Applecare+) and you always upgrade every year - then it makes sense to go on the Apple upgrade plan, as it is the same cost as buying a new phone with AppleCare+.
That may be true but I choose to not go through the what I consider to be a hassle to sell phones on my own. I have drawers full of phones I’ve bought through the years and never sold. I may be missing out on a few bucks but dealing with selling a phone, to me, is torture. With that said, I admire people who get more value selling their phones but for me it’s just not worth it.
Between this thread and the other thread, the low-key judgement and assumptions that a person using the IUP or carrier upgrade can’t afford the iPhone or doesn’t deserve to get one is astounding.
I couldn’t care less if a person is homeless and on their third bankruptcy, yet somehow manages to get a 512GB Max on a payment plan. It’s none of my business how anyone gets their device.
We’re on an Apple enthusiast/rumor mill forum, not a Dave Ramsey forum. There are various ways to purchase the iPhone thanks to carrier plans and Apple’s IUP. No one has to purchase outright unless that is their preference or circumstances determine it.
Should it matter that one person is leveraging a 0% purchase strategy for a phone? I’ve been buying phones outright for years. Only the past couple of upgrades did I use the carrier upgrade plan. For different reasons that have nothing to do with affordability. Even if it was so, why would it matter to anyone here?
If anyone judges me as not being able to afford any Apple device because I am not buying right out of one of my investment accounts or on a CC that would charge me interest for carrying a balance, well that would be because my tech toy budget is a separate bucket and I figured out how to get the most out of my budget based on timing of product introduction.
You guys really don’t know who you’re talking to behind these avatars nor a person’s financial circumstances. Let’s stop with the subtle innuendos of people getting something that they shouldn’t be buying based on how they buy. Despite their marketing, Apple isn’t exclusive to some elite group. I could start assuming people who buy outright either have bad credit, are drug dealers, or don’t understand some basic financial concepts around leveraging money.
But hey, I know I’ll be ignored, so carry on with the over-pontificating of lease vs purchase vs affordability and the poor people who dare to make payments on a phone. It’s a fascinating look into the human psyche.
I couldn’t care less if a person is homeless and on their third bankruptcy, yet somehow manages to get a 512GB Max on a payment plan. It’s none of my business how anyone gets their device.
We’re on an Apple enthusiast/rumor mill forum, not a Dave Ramsey forum. There are various ways to purchase the iPhone thanks to carrier plans and Apple’s IUP. No one has to purchase outright unless that is their preference or circumstances determine it.
Should it matter that one person is leveraging a 0% purchase strategy for a phone? I’ve been buying phones outright for years. Only the past couple of upgrades did I use the carrier upgrade plan. For different reasons that have nothing to do with affordability. Even if it was so, why would it matter to anyone here?
If anyone judges me as not being able to afford any Apple device because I am not buying right out of one of my investment accounts or on a CC that would charge me interest for carrying a balance, well that would be because my tech toy budget is a separate bucket and I figured out how to get the most out of my budget based on timing of product introduction.
You guys really don’t know who you’re talking to behind these avatars nor a person’s financial circumstances. Let’s stop with the subtle innuendos of people getting something that they shouldn’t be buying based on how they buy. Despite their marketing, Apple isn’t exclusive to some elite group. I could start assuming people who buy outright either have bad credit, are drug dealers, or don’t understand some basic financial concepts around leveraging money.
But hey, I know I’ll be ignored, so carry on with the over-pontificating of lease vs purchase vs affordability and the poor people who dare to make payments on a phone. It’s a fascinating look into the human psyche.
I was arguing this point on another thread. The response was it does not matter. Move on. Apparently people don't like to talk about the idea that if you make payments year after year you never actually own the phone.
If you think about it, you buy a phone for $50 a month, store your stuff in the cloud for $10 a month, listen to Music for $14.99 per month, starts to add up. If you cancel all of it what do you have to show for spending all this money? Nothing. You never owned the phone or the music.
Apple's prices keep going up and it is becoming easier and easier to finance all these gadgets. Wonder what will happen down the road.
If you think about it, you buy a phone for $50 a month, store your stuff in the cloud for $10 a month, listen to Music for $14.99 per month, starts to add up. If you cancel all of it what do you have to show for spending all this money? Nothing. You never owned the phone or the music.
Apple's prices keep going up and it is becoming easier and easier to finance all these gadgets. Wonder what will happen down the road.
iPhones are great for 2-3 years. At that point they are still very usable, it just depends how picky you are. My good buddy is happy to stick with his old 6s this year, and he makes bank.
People questioning about leasing, payment plan of the upgrade programs forget one thing, which is WE CAN PAY THE DAMN PHONE OFF any time we want interest free. It’s not a mutual exclusive thing that if u on IUP then you can never own a phone.
I don’t think anyone here is looking down on someone who may not have as strong of a financial position as they do. I personally pay cash for my phones, but I’ll admit my 401k is lacking and I still owe money on my house. I’m not rich, but I’m also not paycheck to paycheck. I personally feel better paying $1099 for a phone in cash then over 24 months. Same cost, but I don’t like to finance anything I don’t have to. I’m sure that $1000 could make a few bucks in interest, but buying a phone for $1000 isn’t “smart” to begin with.
As for people on the iup not being able to afford the phone up front, that is a fact a lot of the time. Ask anyone who manages a phone store. There is nothing wrong with that. I don’t turn my nose up at anyone in regards to their financial situation. It’s just 100% indisputable that upgrade programs are the only way a lot of people can “afford” an expensive phone. Not saying they don’t deserve it or getting high and mighty here. Upgrade programs allow more people to own the phone, which has allowed Apple (and others) to raise the prices up at a very fast pace. When the 6s came out as the flagship phone, it was $749. That was in 2015. The prices are going up hundreds of dollars, but the monthly price is only going up $5-$10 per month. Financially inept people tell themselves “what’s another $5?!” As a result, the prices are climbing and everyone is paying more in the end.
Ya. That’s why I wrote that you paid off the phone WITHIN the contract.
Everyone was so sure that they only paid $200 for the phone and it was anarchy when carriers first announced getting rid of the “$200 phones”.
Same here every year I would buy the newest phone and go somewhere like gazelle to sell the previous one. I dont want to deal with ebay or swappa or anything like that.
This is very simple, not your money then you have no say how someone else spends theirs. Im sure there are equally financially questionable purchases you have all made in our minds as well; that burnt Starcrap every day or new car ever 2-3 years, etc.
And it is NOT more money to Apple. If I bought an X at $999 on financing and paid $499.50 in year 1 and trade up to a Max at $1099 and pay off $549.50 after a year, and you paid $999 for your X and keep it 2 years, who has paid more?
Ok well me slightly but the Maxx is $100 more expensive. If you use the correct X and XS analogy its the SAME AMOUNT after 2 years! SAME $999 (ok a few dollars more paying tax twice). Im not sure why that's so difficult to comprehend.
No one is "throwing away their money to Apple" If you CHOOSE to keep your device over 2 years god speed that's YOUR choice to. But don't criticize others unless you want all of your financial habits criticized too.
Further if I didn't want to trade in my X I could pay $499.50 on top of the $499.50 in payments made in year 1 and own it for the SAME $999 you paid.
This is not brain surgery here. It's a 0% loan, why NOT utilize it? If it was a few percent, I would agree cash up front dont pay interest, but ZERO percent. Anyone with any financial sense generally speaking would always say leverage your money elsewhere on a 0% loan.
And it is NOT more money to Apple. If I bought an X at $999 on financing and paid $499.50 in year 1 and trade up to a Max at $1099 and pay off $549.50 after a year, and you paid $999 for your X and keep it 2 years, who has paid more?
Ok well me slightly but the Maxx is $100 more expensive. If you use the correct X and XS analogy its the SAME AMOUNT after 2 years! SAME $999 (ok a few dollars more paying tax twice). Im not sure why that's so difficult to comprehend.
No one is "throwing away their money to Apple" If you CHOOSE to keep your device over 2 years god speed that's YOUR choice to. But don't criticize others unless you want all of your financial habits criticized too.
Further if I didn't want to trade in my X I could pay $499.50 on top of the $499.50 in payments made in year 1 and own it for the SAME $999 you paid.
This is not brain surgery here. It's a 0% loan, why NOT utilize it? If it was a few percent, I would agree cash up front dont pay interest, but ZERO percent. Anyone with any financial sense generally speaking would always say leverage your money elsewhere on a 0% loan.
Odd topic. I feel as though I'm paying the same, because I get a new phone every year anyway.
Would you ask a person who leases a Benz or Audi purchaser, do you feel you should have gotten something else?
I have too much to worry about in my day to day to worry about why someone else decides to do something. If you have that much time on your hand, I suggest adding some hobbies or volunteering.
Would you ask a person who leases a Benz or Audi purchaser, do you feel you should have gotten something else?
I have too much to worry about in my day to day to worry about why someone else decides to do something. If you have that much time on your hand, I suggest adding some hobbies or volunteering.
Bingo! $199-$299 upfront and a 2-year contract where they charge you $40 a month for the access fee. If you own the phone outright the access fee is only $20. $20x 24 months = $480. So you really are paying full price for the phone.. Never understood why people thought it was a great deal
But they don’t. They either replace every year or every other year. So the payments continue endlessly.
Situation 1: You buy an X at $999 and pay $499.5 in year 1 financing. So at this point you have paid $499.5. Then you decide you want to trade up to the max at $1099, so you pay $549.50 and now you have your max. You've paid $1099.
Situation 2: You buy an X for $999 and keep it 2 years.
But this isn't the end of the story... is it? You still have financing on the Max from the end of year 1 to the end of year 2. You owe more money in situation 1. At the end of year 2 in situation 1, you've spent like $500 more than situation 2 and you don't even own the whole max, you only own half of it and still have the other half to pay off , Edit: Now sure you can trade your X in to make it feel better. But you get a pretty bad trade-in value. You've fallen for exactly the illusion, you pay FAR more in situation 1 than situation 2, not only $100 more.
Edit: There is also a situation 3. Buy a brand new SE like I did 9 months ago for $190 on eBay and laugh at everyone who pays 5-10x more for a freaking phone. Clearly it must be like brain surgery because you're literally wrong in every way
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Carriers offer zero interest so you do not pay more or less, it’s the same. It just gives the ability to those who cannot afford $1000 down to eventually own one or an option to continue to upgrade at thier choice after a year.
I lease the 1st year, pay off the second year and keep it one more year free of monthly payments. After keeping the phone 2 years, I hand down my phone to a family member and get myself a new phone.
By the time I get a new phone every 2 years to hand down, that other phone saw 4 years of use.
I lease the 1st year, pay off the second year and keep it one more year free of monthly payments. After keeping the phone 2 years, I hand down my phone to a family member and get myself a new phone.
By the time I get a new phone every 2 years to hand down, that other phone saw 4 years of use.