iPhone 11 Iphone upgrade programme v 24 month interest free

[Mac2019]

Other than AppleCare+ and ability to upgrade after 11 payments, are there any other key benefits of using the iup instead of the interest free 24 months interest free payments option?

Looking at two options:
IUP:
Iphone 11 128gb £928 (£42.95/month + £69 up front)
Iphone 11 pro max 256gb £1,498 (£71.45/month + £69 up front)

24 month interest free:
Iphone 11 128gb £787.76 (£31.99/month + £20 up front)
Iphone 11 pro max 256gb £1,315.76 (£53.99/month + £20 up front)

So the iup is £140.24 more expensive for the iphone 11 and £182.24 for the pro max. Is it fair to say that that premium is essentially for AppleCare+?

 

[Mac2019]

Bump

 

[MisterSavage]

I think that's right. In the USA the price if you bought the phone in full with Applecare is the same as what you pay if you total up all of the IUP payments. There is zero interest charged.

 

[Brian Y]

Pretty much, yes. AppleCare is £149/199, so you're paying extra for AppleCare.

You have your numbers slightly wrong somewhere. The cost of the 24 months interest free + AppleCare will be the same as the iUP. Your final payment will be adjusted to make sure the amount is the same, as it's 0%.

E.g.

iPhone 11 Pro Max 256GB:

Outright: £1299 + £199 (AC) = £1498
iUP: £71.45 * 20 + £69 = 1498
24 Mo: £20 + 53.99*23 + £37.23 (Final Payment) + £199 (AC) = £1498

Basically, if you take AppleCare, there is 0 difference in what you end up paying whichever route you take.

 

[Bethanie21]

I’m on the iPhone Payments (24 months interest-free) plan here in the UK. I pay £36 a month for my 11 Pro. Good deal for me as I usually upgrade every 2 years anyway.

 

[Mac2019]

Pretty much, yes. AppleCare is £149/199, so you're paying extra for AppleCare.

You have your numbers slightly wrong somewhere. The cost of the 24 months interest free + AppleCare will be the same as the iUP. Your final payment will be adjusted to make sure the amount is the same, as it's 0%.

E.g.

iPhone 11 Pro Max 256GB:

Outright: £1299 + £199 (AC) = £1498
iUP: £71.45 * 20 + £69 = 1498
24 Mo: £20 + 53.99*23 + £37.23 (Final Payment) + £199 (AC) = £1498

Basically, if you take AppleCare, there is 0 difference in what you end up paying whichever route you take.

Ah ok, I just took the numbers from the website and didn't see a note about the final payment being adjusted.

I guess the key consideration is the fact that AppleCare is compulsory on the iup whereas I can choose not to have it on the 24 month plan hence the saving. So the choice is between saving £182.24 (pro max) and being tied to 24 months and no upgrade v paying slightly more but having AC and the early upgrade option.
[automerge]1579276377[/automerge]

I’m on the iPhone Payments (24 months interest-free) plan here in the UK. I pay £36 a month for my 11 Pro. Good deal for me as I usually upgrade every 2 years anyway.

Similar to me, although I've been 3 years of late. Just over a year on my xr but have been prompted to possibly upgrade as my wife needs a new phone and doesn't want to pay much so I may be kind and give her my xr. Upgrade now would mean 11 pro max until 2022 which in effect would mean missing the 2020 release and getting whatever the next one is released in Sept 2021. Or do we both hold out until September when I pass on my xr and get the 12 (or whatever it is called)?!

In my head I know it is a waste of money yet I am still considering it!

 

[MisterSavage]

In my head I know it is a waste of money yet I am still considering it!

No judgement here. I'm on the iPhone Upgrade program and I love it. BTW, you can upgrade after as little as 6 months but you have to pay extra to do it.

 

[tripleburst]

Basically, if you plan on upgrading after a year (or the freedom to make that choice), get the IUP, if you plan on keeping it for 2 years or more and don't want Apple care, get Apple Payments.

 

[Mac2019]

Basically, if you plan on upgrading after a year (or the freedom to make that choice), get the IUP, if you plan on keeping it for 2 years or more and don't want Apple care, get Apple Payments.

Feels like Apple payments is for me as I really don't need to upgrade year on year and have never had the need for AC+ so unsure it is really worth the extra.

 

[MisterSavage]

Feels like Apple payments is for me as I really don't need to upgrade year on year and have never had the need for AC+ so unsure it is really worth the extra.

That sounds logical. I always bought AC and upgraded every year so IUP was a perfect fit for me. I do love that the IUP gives you the freedom to NOT upgrade if the next phone doesn't appeal to you. Two years later and you own the phone you were making payments for.

 

[Holte139]

I'm bumping this because I've noticed a discrepancy with the maths. I'm also trying to work out what the best option would be to upgrade this year using the iPhone 11 Pro Max as an example and I've found a strange anomaly using the 64gb model as an example:

Outright: iPhone and Applecare+ is £1348
Yearly upgrade programme is also £1348 but over 20 months, assuming no upgrade and including deposit.
24 month instalments: iPhone and Applecare+ is £56.28 p/m= £1350.72 + £20 deposit = £1370.72

Also do you have to trade in your current phone when joining the upgrade programme? I know you have to when you upgrade but wasn't sure when joining.

 

[Brian Y]

I'm bumping this because I've noticed a discrepancy with the maths. I'm also trying to work out what the best option would be to upgrade this year using the iPhone 11 Pro Max as an example and I've found a strange anomaly using the 64gb model as an example:

Outright: iPhone and Applecare+ is £1348
Yearly upgrade programme is also £1348 but over 20 months, assuming no upgrade and including deposit.
24 month instalments: iPhone and Applecare+ is £56.28 p/m= £1350.72 + £20 deposit = £1370.72

Also do you have to trade in your current phone when joining the upgrade programme? I know you have to when you upgrade but wasn't sure when joining.

The final payment will be lower on the 24 month plan to take this into account. See the representative example at the bottom of the page..

"Representative example: £1,049 purchase, less £250 trade-in credit and £20 upfront payment. Total amount of credit £779 paid over 24 months as 23 monthly payments of £32.99 and a final payment of £20.23 at 0% p.a. Total cost of credit £0."

So for the iPhone 11 Pro Max 64GB with AppleCare it would actually be:

Up front: £20
23 x £56.28
Final payment: £33.56

Edit: If you know anyone on EE who can share their student discount with you (which is allowed for friends and family - up to 5 lines I believe), you'd probably be better off taking out a contract with EE instead.

 

[jschnee21]

I’m thinking of going with the Apple Upgrade plan for the 12 Pro when it comes out. I always get AppleCare, and I like the option to upgrade after 1yr in case the first 5G iPhone is a dog.

Normally I always wait for the “s” revision — which will be the 12s or 13. But my XSM doesn’t get CBRS which is starting to become a downer since I switched to Verizon.

And I can get 3% back on my Apple Card.

 

[MisterSavage]

Also do you have to trade in your current phone when joining the upgrade programme? I know you have to when you upgrade but wasn't sure when joining.

You do not. That's one of the reasons I always recommend it do people even if they're not yearly upgrade people (like myself). After 24 payments you own the phone. In the USA the total price you pay is the exact same as if you had bought the phone for full price with AppleCare. It is a 0% interest loan.

 

[Holte139]

The final payment will be lower on the 24 month plan to take this into account. See the representative example at the bottom of the page..

"Representative example: £1,049 purchase, less £250 trade-in credit and £20 upfront payment. Total amount of credit £779 paid over 24 months as 23 monthly payments of £32.99 and a final payment of £20.23 at 0% p.a. Total cost of credit £0."

So for the iPhone 11 Pro Max 64GB with AppleCare it would actually be:

Up front: £20
23 x £56.28
Final payment: £33.56

Edit: If you know anyone on EE who can share their student discount with you (which is allowed for friends and family - up to 5 lines I believe), you'd probably be better off taking out a contract with EE instead.

Thank you for helping me understand where I was going wrong!

You do not. That's one of the reasons I always recommend it do people even if they're not yearly upgrade people (like myself). After 24 payments you own the phone. In the USA the total price you pay is the exact same as if you had bought the phone for full price with AppleCare. It is a 0% interest loan.

That's interesting. As long as nothing drastic happens with my finances thanks to everything else going on in the world, I was thinking of giving it a go with the 12 Pro Max as I've never tried it before. I may not get a good trade-in price with Apple on my XS because of some accidental damage at the top and bottom of the right side. But it's minor enough for me to still be able to get the upfront fee paid for and keep some extra by going with another company. I also like the idea of having Applecare+ this time!

 

[Mac2019]

I'm bumping this because I've noticed a discrepancy with the maths. I'm also trying to work out what the best option would be to upgrade this year using the iPhone 11 Pro Max as an example and I've found a strange anomaly using the 64gb model as an example:

Outright: iPhone and Applecare+ is £1348
Yearly upgrade programme is also £1348 but over 20 months, assuming no upgrade and including deposit.
24 month instalments: iPhone and Applecare+ is £56.28 p/m= £1350.72 + £20 deposit = £1370.72

Also do you have to trade in your current phone when joining the upgrade programme? I know you have to when you upgrade but wasn't sure when joining.

Where was the discrepancy with my maths? Mine was based on 256gb, yours on 64gb.

 

[Holte139]

Where was the discrepancy with my maths? Mine was based on 256gb, yours on 64gb.

I was talking about the representative example on Apple's website, not you OP. But the user above, Brian Y, explained where I was going wrong!

 

[Apple Mac Daz]

I did IUP on my XS Max. while I never upgraded to the 11. With the cost of the current iPhones I prefer to have AC+ has a precaution if needed. With not upgrading I have basically about 4 months without paying per month for the phone.

 

[SquealingCustard]

I am looking at using amazon uk again with their 0% offer for 5 payments with 1 month up front as a deposit, yes it works out expensive for the first few months but after that the phone is yours and when the next iPhone 13 is out I will offset the cost of that with selling the iPhone 12.

Normally I have a lump sum saved up which pretty much covers the cost of the phone but doing it this way I have a bit more flexibility with payments and as there are no credit searches it is easier and more convenient too.