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

[Warbrain]

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.

 

[maxsix]

Leasing is renting that never ends.

If you wish to terminate the price is a big one.

 

[jasie02]

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.

 

[Warbrain]

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.

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.

 

[lah]

Not enough demand for it to be lucrative for citizens one.

 

[convergent]

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.

 

[jasie02]

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.

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.

 

[Warbrain]

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.

You're not going into debt with the Citizens One program.

 

[JayLenochiniMac]

You're not going into debt with the Citizens One program.

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.

 

[lah]

You're not going into debt with the Citizens One program.

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.

 

[jasie02]

You're not going into debt with the Citizens One program.

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.

 

[sziehr]

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.

 

[jasie02]

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.

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.

 

[xsdeus]

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.

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.

 

[srshaw]

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.

Agree totally.

 

[maflynn]

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.

 

[nightcap965]

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.

 

[jasie02]

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.

I am assuming you are ready to jump in invest your own money, if everything sounds as good as you said, right?

 

[JayLenochiniMac]

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.

What legal loopholes? The major barrier is it's not financially feasible.

 

[ihonda]

I'd lease a watch for $15 a month but it would have to be the SS model.

 

[xsdeus]

What legal loopholes? The major barrier is it's not financially feasible.

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.

 

[JayLenochiniMac]

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.

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.

 

[xsdeus]

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.

I don't think we're on the same page. I'm not talking about Apple products..

 

[JayLenochiniMac]

I don't think we're on the same page. I'm not talking about Apple products..

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.

 

[xsdeus]

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.

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.