Lease instead of a trade-in program with the next Watch release

Discussion in 'Apple Watch' started by Warbrain, Dec 18, 2015.

  1. Warbrain macrumors 603

    Warbrain

    Joined:
    Jun 28, 2004
    Location:
    Chicago, IL
    #1
    Consider this for the next release...

    We've seen that Apple is willing to have a leasing program with their partner Citizens One. Other than some first day hiccups there's been no complaints I can find or heard about. I think the program is successful enough that Apple would consider it for other products...

    Like the Watch.

    Think about it - you can get an Apple Watch Sport or Apple Watch on a payment plan with AppleCare+ included in that price. It would end up being roughly the same cost over time but, instead of shelling out $399+ at the time of purchase, you spread that out over 24 months with the option to upgrade whenever the next Watch is released.

    I could see Apple branching out and getting this into as many hands as possible. It would be a brilliant move by the company and really allow them to take over the wearables market.
     
  2. maxsix Suspended

    maxsix

    Joined:
    Jun 28, 2015
    Location:
    Western Hemisphere
    #2
    Leasing is renting that never ends.

    If you wish to terminate the price is a big one.
     
  3. jasie02 macrumors 6502a

    jasie02

    Joined:
    Sep 18, 2014
    #3
    Watch, even for smart watch, is like accessories for your body, like shoes, handbag, bracelets.
    A lot of shoes, handbag, or bracelet are significantly more expensive than AW sports or SS, but never hear of any shoes, handbag, or bracelet for leasing, other than formal wear. And in formal wear, they are there for leasing because formal wear leasing, not other way around.

    Don't see it is a successful business model could make money for a business anyone want to invest and grow. Good for consumer though.
     
  4. Warbrain thread starter macrumors 603

    Warbrain

    Joined:
    Jun 28, 2004
    Location:
    Chicago, IL
    #4
    There are third-party companies that lease or rent high-end merchandise like watches and jewelry to people. Apple is in a unique position to be able to offer it themselves and cut out the middleman.

    Apple partners with Citizens One, Citizens One pays Apple upfront for each person that signs up. I think it's a real possibility.
     
  5. lah macrumors regular

    Joined:
    Mar 22, 2010
    #5
    Not enough demand for it to be lucrative for citizens one.
     
  6. convergent macrumors 68000

    convergent

    Joined:
    May 6, 2008
    Location:
    Raleigh, NC
    #6
    Going into debt to buy something as non-essential as a smartwatch is such a bad decision. And yes, a lease is a debt. If you can't afford to buy a smartwatch with expendable funds, then it shouldn't be on your wrist... just my humble financial advise.
     
  7. jasie02 macrumors 6502a

    jasie02

    Joined:
    Sep 18, 2014
    #7
    You answer your own question.
    "High-end", anything less than maybe $1000, definitely less than $500, for accessories/watch/jewel is not really "high-end". "Middle-end" maybe, but not highend.

    Go to a Tiffiny or other really highend jewel store, highend leather handbag store. It is hard to find something less than $1000, finding $500 less fashion brand highend handbag is like stealing.

    I could see leasing for AW Edition, that will fit in highend category, but not necessary worth highend money, IMHO.
     
  8. Warbrain thread starter macrumors 603

    Warbrain

    Joined:
    Jun 28, 2004
    Location:
    Chicago, IL
    #8
    You're not going into debt with the Citizens One program.
     
  9. JayLenochiniMac macrumors G5

    Joined:
    Nov 7, 2007
    Location:
    New Sanfrakota
    #9
    You conclude this how? People get into debt all the time by agreeing to payment plans they cannot afford. Getting approved for financing doesn't mean you're not currently living beyond your means. It can still happen one way or another.
     
  10. lah macrumors regular

    Joined:
    Mar 22, 2010
    #10
    Of course you are. You are getting a loan from Citizens One therefore taking on debt. You might be able to pay it off, but it's still debt.
     
  11. jasie02 macrumors 6502a

    jasie02

    Joined:
    Sep 18, 2014
    #11
    When you "borrow" $$$$, you are in debt.
    From Webster, definition of "debt": an amount of money that you owe to a person, bank, company, etc.
     
  12. sziehr macrumors 6502a

    Joined:
    Jun 11, 2009
    #12
    To clear this up. The companies treat it as a lease expecting you to turn in the device every year. The financial arm is actually a revolving credit line which is consumer debt. So it is charged to apple as a sale you as debt and apple expects to pay off your device to the bank when you trade it in like a car lease. The one exception is with the phone you can pay your 24 month payment and the device is yours with no penalty like you might find with a car lease. The terms are pretty clear and upfront.

    In short this is debt
    This is also a trailing lease for Apple they expect to pay off back a lot of these devices.
     
  13. jasie02 macrumors 6502a

    jasie02

    Joined:
    Sep 18, 2014
    #13
    0% interest for whole duration of loan, and if not pay back also?

    There got to be a financial incentive for Citizens One, or any bank/loan shark, welling to loan any $$ to anyone.
    There is no free meal in this world, most of people are in the business for $$ making business, not consumer pleasing and no financial benefit business.
     
  14. xsdeus macrumors regular

    Joined:
    May 24, 2012
    Location:
    San Diego, CA
    #14
    On the contrary, if a 3rd party managed to figure out legal loopholes to lease luxury goods to eager consumers, .... wow. That would be a total game changer.
     
  15. srshaw macrumors 6502

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    Aug 13, 2011
    #15
    Agree totally.
     
  16. maflynn Moderator

    maflynn

    Staff Member

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    May 3, 2009
    Location:
    Boston
    #16
    I see a market for leasing a 700 dollar phone for 2 years. I do not see a market for leasing a 350+ dollar watch for two years, yes the price does go up, but my point remains I don't see a market for this.
     
  17. nightcap965 macrumors 6502a

    nightcap965

    Joined:
    Feb 11, 2004
    Location:
    Cape Cod
    #17
    Next year, there'll be a thriving resale market for 2015 Apple Watches. If you can't afford to buy the 2016 model outright and still think you need a watch, you can buy used. Leasing is almost always a bad idea.
     
  18. jasie02 macrumors 6502a

    jasie02

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    Sep 18, 2014
    #18
    I am assuming you are ready to jump in invest your own money, if everything sounds as good as you said, right?
     
  19. JayLenochiniMac macrumors G5

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    New Sanfrakota
    #19
    What legal loopholes? The major barrier is it's not financially feasible.
     
  20. ihonda macrumors 68000

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    Sep 17, 2009
    #20
    I'd lease a watch for $15 a month but it would have to be the SS model.
     
  21. xsdeus macrumors regular

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    May 24, 2012
    Location:
    San Diego, CA
    #21
    I'm not sure.. I haven't done any research on the matter, and it was meant as a passing remark.

    But I would think leasing out merchandise could fall into the category of resale.. which is forbidden beyond an operation of a personal scale.

    And why wouldn't it be financially feasible? Make rental periods short, to 1 week, and charge small fees for insurance purposes, in case merchandise becomes damaged. Theft can be covered via deposit through credit card pre-authorization. Make a shipping deal with a logistics company (piggyback on Amazon Prime, perhaps?) to make rentals and returns easier and faster.
     
  22. JayLenochiniMac macrumors G5

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    Nov 7, 2007
    Location:
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    #22
    I don't see anyone doing a one-week rental on the Edition. It's not even in the same category as ultra high-priced jewelry that stars do rent for the red carpet, etc.
     
  23. xsdeus macrumors regular

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    San Diego, CA
    #23
    I don't think we're on the same page. I'm not talking about Apple products..
     
  24. JayLenochiniMac macrumors G5

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    Nov 7, 2007
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    New Sanfrakota
    #24
    Luxury goods are usually bought in full by people rich enough to afford them and there's already a rental market for ultra high-priced jewelry.
     
  25. xsdeus macrumors regular

    Joined:
    May 24, 2012
    Location:
    San Diego, CA
    #25
    1. Thank you for your opinion and feedback.

    2. As I was writing a reply to your comment.. I realized, I don't need to defend myself nor my idea so fervently... it was just a passing remark after all. Thank you nonetheless for commenting on it, and giving me something to think about and chew on.

    3. I think you and I have different ideas, and it might be best to leave it as "agreeing to disagree" because...

    4. It's Christmas. Happy holidays, and warm wishes to you and your family.
     

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