Iphone Upgrade Program

[Fthree]

Sorry if this is a repeated question.

I was planning on paying full price for a Iphone 7 but was talked into the upgrade program. Since its 0% interest and I have the money to pay it off now I decided to sign up and just pay in full asap. HOWEVER after reading posts and reviews apparently if i pay it off and want to trade it in after 12 months i won't get the credit for the second 12 months as the upgrade cycle would start over on the new phone. Any one have ideas on how this works? should i just pay 12 months now and wait it out?

 

[Jal217]

Sorry if this is a repeated question.

I was planning on paying full price for a Iphone 7 but was talked into the upgrade program. Since its 0% interest and I have the money to pay it off now I decided to sign up and just pay in full asap. HOWEVER after reading posts and reviews apparently if i pay it off and want to trade it in after 12 months i won't get the credit for the second 12 months as the upgrade cycle would start over on the new phone. Any one have ideas on how this works? should i just pay 12 months now and wait it out?

Definitely do not pay it off if you plan to upgrade in 12 months. You basically would just have to start a new upgrade program and sell the phone yourself. You get better value out of the trade in by only paying the first 12 months then trading it in.

Also a very important thing to remember is that at 0% interest, making payments every month is better financially than paying it off instantly. That's like lesson one of ecomonics. I would just pay as the program intends. That's the best value for your money. You'll get the best trade in value and you won't need to pay a penny more than you really need to to upgrade.

 

[rainafterthesun]

Sorry if this is a repeated question.

I was planning on paying full price for a Iphone 7 but was talked into the upgrade program. Since its 0% interest and I have the money to pay it off now I decided to sign up and just pay in full asap. HOWEVER after reading posts and reviews apparently if i pay it off and want to trade it in after 12 months i won't get the credit for the second 12 months as the upgrade cycle would start over on the new phone. Any one have ideas on how this works? should i just pay 12 months now and wait it out?

You have 14 days to do a refund so you can do so and opt out of IUP but the credit check aka ding, remains.

The card you used to check credit is automatically deducted monthly--the $xx.xx payment which is essentially the cost of the phone plus Apple care plus divided by 24.

First charge will be tax and 1st month's payment.

Subsequently, every month after that is an auto charge.

You can't pay it all off at once, that's the whole point of IUP, the spread of the payments at 0 APR (you are forced to purchase apple care plus though).

Once you've made twelve payments you can turn in your phone (that will close out the loan) and apply for a new one, to upgrade and get a new phone, but that includes taking out another 24 month installment loan (option to upgrade) and a credit check.

If you decide you want to do it before the 12th payment that's fine, once you've made six, apple says you can pay how much ever left you need to, to get to the 12th payment, and close out the loan that way and reapply aka get a new phone.

If you decide to cancel your apple care at anytime, it becomes an installment plan. Meaning you can't turn in the phone for an upgrade.

You can upgrade anytime between the 12th payment and the 23rd...because once you make the final one, the loan is closed out and therefore the phone is yours.

It's more worth it for you to trade it in at the 12th month.

Hth

 

[Fthree]

thanks for the responses, so i cannot pay it in full at any point?
[doublepost=1475335811][/doublepost]

Definitely do not pay it off if you plan to upgrade in 12 months. You basically would just have to start a new upgrade program and sell the phone yourself. You get better value out of the trade in by only paying the first 12 months then trading it in.

Also a very important thing to remember is that at 0% interest, making payments every month is better financially than paying it off instantly. That's like lesson one of ecomonics. I would just pay as the program intends. That's the best value for your money. You'll get the best trade in value and you won't need to pay a penny more than you really need to to upgrade.

thats pretty much what my wife said. I am one that likes to upgrade every year and in my head all id be doing is paying 400-480 for the 12 months over paying the full 1k and only getting a couple hundred next year when i want to trade it. (HOPE IM NOT WRONG ON THAT)

 

[AZhappyjack]

thanks for the responses, so i cannot pay it in full at any point?
[doublepost=1475335811][/doublepost]
thats pretty much what my wife said. I am one that likes to upgrade every year and in my head all id be doing is paying 400-480 for the 12 months over paying the full 1k and only getting a couple hundred next year when i want to trade it. (HOPE IM NOT WRONG ON THAT)

You can, but it would essentially cancel your participation in the IUP.