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IPhone upgrade program - shock!!
- Thread starter djrm
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Only just woken up so need to read all your replies properly but a lot saying I have over estimated what I sell my iPhones for, well I've sold mine every year so far and taking the 6S+ that's just sold, bought it at launch for £789 and just sold it in immaculate condition for £599 so it's cost me £190 over the year. That didn't include apple care. Selling a phone after one year with an unused apple care agreement definitely increases resale value
Those are very ambitious re sale prices. However I agree that buying outright and re selling privately is a much better way to upgrade each year than the upgrade program.
The only real benefit to the upgrade program is the stability and lack of hassle when it comes to upgrading
The only real benefit to the upgrade program is the stability and lack of hassle when it comes to upgrading
I sold my mint 17 month old silver iPhone 6 128gb last weekend for £400 and the advert was live for less than 12 hours.
I made it clear that I wasn't interested in offers or trades and the advert cost me £0 as I sold it on gumtree.
I don't get apple care as my bank account offers same or next day delivery of a new phone if I lose or damage it.
I made it clear that I wasn't interested in offers or trades and the advert cost me £0 as I sold it on gumtree.
I don't get apple care as my bank account offers same or next day delivery of a new phone if I lose or damage it.
Also, the resale value of a used phone in part depends upon how well you care for it. The iUP won't lowball you because your phone has normal wear and tear.
You can use the upgrade program and still sell your phone privately.
For months 1-11, you make your normally monthly payment. On month 12, you pay off the remaining balance (which makes you eligible to get a new iPhone on a new program), and then you sell the phone privately.
Less impact to cash flow this way vs buying outright.
Plus, you have the chance before you pay it off and resell it privately to assess the market. If you don't think you can net 50% selling it privately, you still have the ability to use the upgrade program (which guarantees 50%).
I think this is the first year of the upgrade program in the U.K. Be curious to see if the resale market going forward gets affected.
I have had buyers refuse to pay anything extra for the AC+ and so I canceled the policy to get a refund. And even the ones who will pay extra for it, they won't pay the full value for it. Just depends on the buyer.
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Then you sold it for 76% of what you paid for it. I have sold a lot of used iPhones in perfect condition and I never get that much for them. For instance, the last Mint condition Verizon (which are unlocked) 128GB iP6s+ to sell on swappa sold for $575. That phone was about $1010 new with the sales tax so the seller got 57% for it, but after you factor in the cost to sell (shipping, paypal, swappa fees), he likely only netted about 52% on the sale:
https://swappa.com/listing/HAM873/view
And you will notice the low ball offer the seller got at first - $500, which is less than half of what he paid for it new when you factor in the sales tax.
I have also sold a lot of new iPhones - brand new, sealed in box, unactivated with full warranty - and unless I am selling them right after launch when they are still in short supply, typically I only get about 80% of the full retail + sales tax price. And for the iPSE's I sold last summer, I was only getting 76% for brand new, sealed in box, unactivated with full warranty iPSE.
So if you can get 76% for a year old used iPhone where you live, your market is much different than the market here in the US.
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How much did you pay for it new?
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Yep. My numbers reflect absolutely perfect condition used phones that have been in Otterboxes, Lifeproof, etc. kind of cases. You get even less for those with normal wear and tear showing.
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Ok then you got 57% back on a 17 month old phone. Definitely better than what you could get in the US.
I am not sure why the resale values are better in the UK than in the US.
Supply and demand probably has something to do with it. The population of the US is much higher, so there are probably a lot more used devices available right after launch.
This is true, but unlikely to make you any money, at least in the States.
Apple essentially gave me $440 for my 64GB 6s on trade in for the IUP. I sold my GF's iPhone 64GB 6s 3rd party, as she was not part of IUP and could only fetch $415. So if I did what the person you quoted suggested, I would have lost $35.
Yeah, swappa gets loaded with the previous year's model right around launch. The prices go down there is so much competition. But then ironically, the prices start to go up again around the end of October.
If I wasn't on a grandfathered UDP on Verizon and still qualify for subsidized phones and if my relatives who are on the new plans didn't qualify for such good trade in promotions through Verizon, I would buy used phones if they had a year left of AC+.
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All he/she is doing is buying the phone for full retail and then selling. Yes, Apple will let you pay off the loan. All the AiUP program is is an interest free loan with the option of trading in at the end of 1 year. But it is an option, you don't have to do it. At the end of 1 year you have 3 options:
1) continue paying the monthly fee;
2) pay off the loan in full;
3) trade in the device for the new model.
If you do #3, you owe the sales tax on the new model + sales tax on the AC+ and at least for Verizon, the $20 upgrade fee + sales tax on that.
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Did your GF's phone have a year left of AC+? Because if it didn't, that is not an apples to apples comparison.
You can get balance of AppleCare+ refunded. I just got $57 back by making a phone call.
It did not have AC left, but the max you can get for that is $65. So by that logic I would have netted $30. Too big of a gamble.
The $440 buy out amount includes the AC+. So had you bought out your financing agreement for $440, it would have had 1 year of AC+.
And like I said, I could have increased the resale value of the 6s by a max of $65. So thats $470 max, netting me $30. But that is a gamble. Most people don't pay the entire value of AppleCare+ on resale.
Yes I know, but I think your GF's device could have sold for more if it were in mint condition. I netted $450 if you don't factor in the AC+ for a pristine 64GB iP6s after you deduct what I paid to sell it (shipping/paypal/swappa fees).
So I think if you bought out your financing contract, you could have netted $450 for the device w/o AC+ if it was in pristine condition and got a refund of $65 for the AC+. That would come to $515 so by doing the AiUP you lost about $75. But for that $75, you didn't have to go through the hassle of selling the phone.
And that $75 assumes a pristine phone. Even 1 ding and you are not likely going to be even that small amount ahead.
I agree with you that the AiUP is the better option for most people. I am just pointing out that you can come out a bit ahead if you buy out the financing contract but that is only true if the device is in absolutely perfect condition. And you still then have to go through the hassle of selling the phone. So really, the AiUP is the better deal at least based on what I can sell used phones for.
But it also depends on area as well. Not sure where you are located in the country, but in SoCal, I have noticed that the resale market is softer than other parts of the country. Probably because the market is flooded and the majority of people want to upgrade anyway. Her phone was 100% flawless, not a speck on it but that is all I could get after shipping, fees and all that jazz. I did sell it on Swappa.
I sold on swappa. I have excellent feedback on swappa as well as having sold there for a couple of years so I am sure that helps too. And there is a bit of luck to it also. You need the right buyer to come along who wants the color and storage of your device. But perhaps even more importantly, you need to list it when there aren't others willing to sell cheaply simply to get rid of the devices. All you need is someone who is in a hurry to cash out to sell right when you are listing and then you start getting all of these low ball offers.
Yeah. I've been selling on eBay and Craigslist for years. Even for $50-$60, the IUP is just easier and more convenient IMO.
One of the key things IME is to take very good pics with a very good camera. I used my Note5 to take the pics and took them in different lighting conditions. Takes a lot of time though, and the increased sale value is not worth my time.
But really that is the whole point here - for the small amount of extra money you can make, it is simply not worth the hassle/risk of having to sell a used phone. At least not in the US. In the US, the AiUP is a bit more expensive but the convenience of not having to sell a used phone is worth it.