iPhone Upgrade Program - Options for getting out?

Discussion in 'iPhone' started by jagooch, Mar 19, 2017.

  1. jagooch macrumors regular

    jagooch

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    Location:
    Denver, co
    #1
    I must have been on drugs when I signed up for the upgrade program last year. I reviewed my finances/budget today, and the loan for my iPhone sticks out like a sore thumb. I bought the basic upgrade plan for $36/month for 2 years, but I can upgrade my phone after 12 months to start a new 2 year payment plan.

    I'm creating a list of options for getting out of the plan to review and pick the one I like the most. My goal is to end up with an iPhone 7 and no loan , while spending as little as possible.
    • The most obvious option is to pay the $650 balance and keep the phone.

    Are there any other options that I should consider? Such as transferring it to someone else and buying a used phone? Thanks in advance!
     
  2. BasicGreatGuy Contributor

    BasicGreatGuy

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    #2
    What phone do you have now, and how many months left on your current loan?
     
  3. LoliS, Mar 19, 2017
    Last edited: Mar 19, 2017

    LoliS macrumors regular

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    #3
    That's the only option if you don't want to pay monthly but why do that when you can just continue to pay monthly?

    The AiUP is an interest free loan. You can pay it off and sell the phone if you don't have the money to keep the phone.
    It's not transferable. It's a loan that you took out and was based on your credit score.
     
  4. BasicGreatGuy Contributor

    BasicGreatGuy

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    #4
    I missed the fact that you posted what you owe on your current phone. I agree with @LoliS. Pay off your current loan. Keep your current phone unless there is some kind of hardware problem. Save up for a new phone that you can either pay cash for or have lower payments.
     
  5. Brian Y macrumors 68040

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    Oct 21, 2012
    #5
    Paying it off early is pointless IMO - it's basically an interest free loan.

    Keeping the money in a savings account will probably earn you a few bucks in interest over the course of 2 years.
     
  6. LoliS macrumors regular

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    #6
    The only way you are ending up with an iPhone 7 with no loan is to pay off the loan you took out to buy the iPhone 7.

    But since the loan is an interest free loan, it makes no sense to pay it off early.
     
  7. BasicGreatGuy Contributor

    BasicGreatGuy

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    #7
    Keeping money in a regular checking account or even savings account will not yield any appreciable dividend, unless the OP has a different account with a large balance, which I doubt is the case.
     
  8. Mlrollin91 macrumors G4

    Mlrollin91

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    #8
    It's no different than doing carrier financing. Not sure why it sticks out like a sore thumb. If you want to ever upgrade your phone, your options are full price up front or interest free monthly payments. Not sure what the problem is.
     
  9. BasicGreatGuy Contributor

    BasicGreatGuy

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    #9
    It sounds like the OP may have overextended himself with acquiring another bill, and can't really afford the continual payments.
     
  10. LoliS macrumors regular

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    #10
    Right but yet OP's state goal is to end up with an iPhone 7 and no loan, lol!

    If he overextended himself, he needs to pay off the loan and then sell the phone and buy a cheaper phone.
     
  11. Mlrollin91 macrumors G4

    Mlrollin91

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    #11
    As Lolis said, it sounds like the OP wants the phone but doesn't want to pay the full price of getting a new phone. The IUP didn't cost him a cent more than buying new (besides AppleCare+) but if he doesn't plan on trading in the phone he can cancel AC+ and get a pro-rated refund.
     
  12. LoliS macrumors regular

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    #12
    Can you cancel the AC+ and keep paying off the device monthly?
     
  13. BasicGreatGuy Contributor

    BasicGreatGuy

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    #13
    That is true.

    In my opinion, if a $36.00 bill sticks out as a sore thumb compared to other bills one may have, (housing car etc.) there are probably bigger budget issues that may need to be rightfully addressed.
    --- Post Merged, Mar 19, 2017 ---
    1. Termination of your Installment Loan and Cancellation of AppleCare+. You understand that you have purchased AppleCare+ with funds borrowed from the Bank under an Installment Loan. If the Installment Loan is terminated, you must cancel AppleCare+ by contacting AppleCare at: (800) 275-2273. If you do not cancel AppleCare+ on your own, you agree that the Bank is permitted to cancel AppleCare+ on your behalf. In any such event, any refund due on your AppleCare+ will be remitted to the Bank as a payment toward any amount owed by you to the Bank. If the AppleCare+ refunded amount is greater than the amount owed on the Installment Loan, Bank will issue you a refund in the amount of the difference to the credit card you used to enroll in the iPhone Upgrade Program.
    2. Return of AppleCare+. If you return AppleCare+ associated with your iPhone Upgrade Program, any refund due on your AppleCare+ will be remitted to the Bank as a payment toward any amount owed by you to the Bank. If the AppleCare+ refunded amount is greater than the amount owed on the Installment Loan, Bank will issue you a refund in the amount of the difference to the credit card you used to enroll in the iPhone Upgrade Program.
    https://www.apple.com/legal/sales-support/iphoneupgrade_us/
     
  14. Mlrollin91 macrumors G4

    Mlrollin91

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    #14
    Thanks for finding and posting this. Don't have my computer so would have been harder!
     
  15. LoliS macrumors regular

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    #15
    I am not understanding this. If you pay the loan off early, is there any way to keep AC+?

    If you want to continue to pay monthly, is there any way to lower your monthly payment amount by canceling the AC+?
     
  16. BasicGreatGuy Contributor

    BasicGreatGuy

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    #16
    It is my understanding, that if you pay off the loan early, the AC+ stays intact. However, if you terminate the loan early by either default or using the upgrade option, the AC+ on the phone is terminated, and any residual financial amount left from AC+ reverts back to the bank, so that fulfillment of the loan can occur with the upgrade.
     
  17. LoliS macrumors regular

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    #17
    And there is no way to cancel the AC+ and continue to pay monthly, correct?
     
  18. BasicGreatGuy Contributor

    BasicGreatGuy

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    #18
    Not that I am aware of. The AC+ is required while there is an outstanding balance due.
     
  19. Mlrollin91 macrumors G4

    Mlrollin91

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    #19
    Look at number 2. You can cancel AC+ and the refunded amount will come off the balance of the loan. If you don't plan on upgrading before paying off the phone, you can cancel AC+. I've verified this with Apple. You only need AC+ if you plan on trading in the phone before the loan is paid off.
     
  20. LoliS macrumors regular

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    #20
    Then OP's cheapest option is to pay off the loan and cancel the remaining AC+ for a prorated refund. Assuming his iPhone 7 is 6 months old, that will give him a refund of about $100 if he lives in a state that doesn't allow Apple to charge a 10% cancellation fee or about $90 if his state does allow it.
    --- Post Merged, Mar 19, 2017 ---
    If that is how it works, then that would be OP's cheapest option. It would only lower his monthly payment by $5.33/mo though.
     
  21. Mlrollin91 macrumors G4

    Mlrollin91

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    #21
    Probably wouldn't even do that. It would just shorten the amount of payments by 1 or 2. Its pro-rated and it comes off the balance. Minimum payment would still apply.
     
  22. jagooch thread starter macrumors regular

    jagooch

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    Location:
    Denver, co
    #22
    I can see how people are confused about the 'sore thumb' part.

    I usually pay cash up front for everything , including my cell phone , car, etc , so having a payment plan for my phone doesn't match everything else. I'm a mega saver who hates paying even a cent of interest . monthly loan payments in general tend to bug me , even if they are 0% interest. I think it's having an obligation hanging over my head, even a small one, that bothers me. I also don't like having more accounts to keep track of than necessary , as it's pointless work to manage them.

    I don't have Apple Care so that isn't part of the equation.

    Thanks to everyone who replied for the feedback. I'm going to pay off the iPhone this week since that is the simplest way to erase the one loan payment I have .
     
  23. BasicGreatGuy Contributor

    BasicGreatGuy

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    #23
    Thank you for elaborating. That sheds a whole new light on everything you previously said. That would have been good to know to begin with.
     
  24. Mlrollin91 macrumors G4

    Mlrollin91

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    #24
    If you are on the IUP then you have AC+. $36 a month would be an iPhone 7 128GB with AC+.
     
  25. LoliS macrumors regular

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    Mar 8, 2017
    #25
    There's no interest on the AiUP loans. That's the beauty of the program.
    --- Post Merged, Mar 19, 2017 ---
    If you financed the phone through the AiUP, you have AC+ even if you don't realize it.
    --- Post Merged, Mar 19, 2017 ---
    Be sure and cancel the AC+ for a prorated refund if you don't want it.
     

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