iPhone Upgrade Program - Options for getting out?

jagooch

macrumors 6502a
Original poster
Jul 17, 2009
551
149
Denver, co
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!
 

LoliS

macrumors regular
Mar 8, 2017
172
71
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.
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.
Such as transferring it to someone else and buying a used phone?
It's not transferable. It's a loan that you took out and was based on your credit score.
 
Last edited:
  • Like
Reactions: aristobrat

BasicGreatGuy

macrumors G5
Sep 21, 2012
14,341
14,311
In the middle of several books.
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.
 
  • Like
Reactions: LoliS

Brian Y

macrumors 68040
Oct 21, 2012
3,658
809
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.
 

LoliS

macrumors regular
Mar 8, 2017
172
71
My goal is to end up with an iPhone 7 and no loan , while spending as little as possible.
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.
 

BasicGreatGuy

macrumors G5
Sep 21, 2012
14,341
14,311
In the middle of several books.
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.
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.
 

Mlrollin91

macrumors G5
Nov 20, 2008
13,537
9,086
Ventura County
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!
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.
 
  • Like
Reactions: LoliS

BasicGreatGuy

macrumors G5
Sep 21, 2012
14,341
14,311
In the middle of several books.
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.
It sounds like the OP may have overextended himself with acquiring another bill, and can't really afford the continual payments.
 

LoliS

macrumors regular
Mar 8, 2017
172
71
It sounds like the OP may have overextended himself with acquiring another bill, and can't really afford the continual payments.
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.
 
  • Like
Reactions: Mlrollin91

Mlrollin91

macrumors G5
Nov 20, 2008
13,537
9,086
Ventura County
It sounds like the OP may have overextended himself with acquiring another bill, and can't really afford the continual payments.
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.
 

LoliS

macrumors regular
Mar 8, 2017
172
71
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.
Can you cancel the AC+ and keep paying off the device monthly?
 

BasicGreatGuy

macrumors G5
Sep 21, 2012
14,341
14,311
In the middle of several books.
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.
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.
[doublepost=1489956179][/doublepost]
Can you cancel the AC+ and keep paying off the device monthly?
  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/
 

Mlrollin91

macrumors G5
Nov 20, 2008
13,537
9,086
Ventura County
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.
[doublepost=1489956179][/doublepost]
  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/
Thanks for finding and posting this. Don't have my computer so would have been harder!
 

BasicGreatGuy

macrumors G5
Sep 21, 2012
14,341
14,311
In the middle of several books.
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+?
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.
 
  • Like
Reactions: LoliS

LoliS

macrumors regular
Mar 8, 2017
172
71
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.
And there is no way to cancel the AC+ and continue to pay monthly, correct?
 

Mlrollin91

macrumors G5
Nov 20, 2008
13,537
9,086
Ventura County
And there is no way to cancel the AC+ and continue to pay monthly, correct?
Not that I am aware of. The AC+ is required while there is an outstanding balance due.
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.
 

LoliS

macrumors regular
Mar 8, 2017
172
71
Not that I am aware of. The AC+ is required while there is an outstanding balance due.
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.
[doublepost=1489958815][/doublepost]
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.
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.
 

Mlrollin91

macrumors G5
Nov 20, 2008
13,537
9,086
Ventura County
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.
[doublepost=1489958815][/doublepost]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.
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.
 

jagooch

macrumors 6502a
Original poster
Jul 17, 2009
551
149
Denver, co
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 .
 

BasicGreatGuy

macrumors G5
Sep 21, 2012
14,341
14,311
In the middle of several books.
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 .
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.
 

Mlrollin91

macrumors G5
Nov 20, 2008
13,537
9,086
Ventura County
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 .
If you are on the IUP then you have AC+. $36 a month would be an iPhone 7 128GB with AC+.
 

LoliS

macrumors regular
Mar 8, 2017
172
71
hates paying even a cent of interest
There's no interest on the AiUP loans. That's the beauty of the program.
[doublepost=1489967628][/doublepost]
I don't have Apple Care so that isn't part of the equation.
If you financed the phone through the AiUP, you have AC+ even if you don't realize it.
[doublepost=1489967666][/doublepost]
I'm going to pay off the iPhone this week since that is the simplest way to erase the one loan payment I have .
Be sure and cancel the AC+ for a prorated refund if you don't want it.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.