Turning in Old Phone

LarryJoe33

macrumors 68000
Original poster
Jul 17, 2017
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Boston
I just checked on the status of my X through the Apple Store App and it have me instructions for turning in my 7. They mention closing out the loan and cancelling Apple Care. Wasn't the mandatory Apple Care we have to buy as part of the program 2 years? Why would they cancel it and if so, should we get money back?

I don't plan on turning my phone in. I am going to sell it myself and I was hoping "Apple Care until September 2018" would be a selling perk.
 

hannahjayne

macrumors regular
May 26, 2010
179
38
When you pay off the loan you’re paying off the full amount including AppleCare. If you’re closing the loan in an Apple store then you’re effectively not paying any more and haven’t paid any more for coverage as you won’t have the phone going forward. The question should be ‘if you settle the financing agreement early when does the Apple Care coverage end?’
 

edlex

macrumors 68000
Apr 14, 2010
1,985
789
Miami
I just checked on the status of my X through the Apple Store App and it have me instructions for turning in my 7. They mention closing out the loan and cancelling Apple Care. Wasn't the mandatory Apple Care we have to buy as part of the program 2 years? Why would they cancel it and if so, should we get money back?

I don't plan on turning my phone in. I am going to sell it myself and I was hoping "Apple Care until September 2018" would be a selling perk.
You don’t have to send it back. You’ll just keep paying the current loan or pay it off. AppleCare is prorated over the 24 payments so as long as you keep paying the payments or pay off the phone your AppleCare is active. What you paid up front was the taxes.
 

LarryJoe33

macrumors 68000
Original poster
Jul 17, 2017
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Boston
Thanks to both of you. I assumed my loan balance /payoff included the full two years of Apple care. When they “payoff my loan” when turning it in, I assumed they are buying it back from me and that balance has the full Apple care term in it.

I see what you are saying though. Another way for Apple to make a crazy profit off the trade in. I am guessing citizens adjust the payoff to exclude Apple care which is about $60.
 

edlex

macrumors 68000
Apr 14, 2010
1,985
789
Miami
Thanks to both of you. I assumed my loan balance /payoff included the full two years of Apple care. When they “payoff my loan” when turning it in, I assumed they are buying it back from me and that balance has the full Apple care term in it.

I see what you are saying though. Another way for Apple to make a crazy profit off the trade in. I am guessing citizens adjust the payoff to exclude Apple care which is about $60.
Well the cost of AppleCare is divided into 24 payments as well as the full price of the phone. If you turn it in you avoid having to pay the rest of the cost of AppleCare as well as the phone. The only thing you don’t get back is the taxes on the full price of the phone and AppleCare you pay up front.
 

LarryJoe33

macrumors 68000
Original poster
Jul 17, 2017
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Boston
Well the cost of AppleCare is divided into 24 payments as well as the full price of the phone. If you turn it in you avoid having to pay the rest of the cost of AppleCare as well as the phone. The only thing you don’t get back is the taxes on the full price of the phone and AppleCare you pay up front.
There are a lot of ways to look at this. When you say avoid having to pay the cost of the phone and not having to pay the rest of Apple Care ---- I look at it this way. It is my phone, I own it and chose to finance the cost with Apple Care interest free. Apple is "buying it from me" per say at a very below market price and cancelling their own Apple Care to make the purchase price even lower.

The way the program work with Citizens financing it, I don't feel like Apple is relieving me. Like I said, there are lots of ways to look at this, but make no mistake, the average consumer thinks they are getting a new phone every year because they get to trade in their old(new) one year old phone.

Meanwhile, Apple makes money off Apple care that no one uses in year one for the most part, they "buy" back an $800 phone (new) for $320 (after cancelling Apple Care) and definitely sell it to resellers for a profit.
 

akash.nu

macrumors 604
May 26, 2016
7,355
8,278
There are a lot of ways to look at this. When you say avoid having to pay the cost of the phone and not having to pay the rest of Apple Care ---- I look at it this way. It is my phone, I own it and chose to finance the cost with Apple Care interest free. Apple is "buying it from me" per say at a very below market price and cancelling their own Apple Care to make the purchase price even lower.

The way the program work with Citizens financing it, I don't feel like Apple is relieving me. Like I said, there are lots of ways to look at this, but make no mistake, the average consumer thinks they are getting a new phone every year because they get to trade in their old(new) one year old phone.

Meanwhile, Apple makes money off Apple care that no one uses in year one for the most part, they "buy" back an $800 phone (new) for $320 (after cancelling Apple Care) and definitely sell it to resellers for a profit.
What about the cost to put the phone through Apple’s refurbishment cycle? You’ll need to add that cost to what you’re presuming Apple is buying the phone for.

It’s not that they’re just going to send the phones back to whoever they send it to for resell or for use as refurbished replacements as is.
 

LarryJoe33

macrumors 68000
Original poster
Jul 17, 2017
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Boston
What about the cost to put the phone through Apple’s refurbishment cycle? You’ll need to add that cost to what you’re presuming Apple is buying the phone for.

It’s not that they’re just going to send the phones back to whoever they send it to for resell or for use as refurbished replacements as is.
That's all good, I get that too. I guess back to the original topic of why they cancel Apple Care and it looks like I am good to go in terms of paying the phone off and selling it. I'm not trying to make Apple out as being the evil empire, but a $200 difference in market value and payoff (trade-in) has to make some people want to sell it themselves. In terms of refurbish costs, I have no idea what goes into a refurbishment process, I assume a new screen and battery if needed. In my case, mu phone is mint, box, etc.
 

CTHarrryH

macrumors 68020
Jul 4, 2012
2,049
746
Pardon for adding my own question about this. I want to turn in my old phone. Is this step part of the online order process or do I have to get the new phone and then do the turn in process. Also, if later then I get a Apple gift card - right - just what I don't need.
 

LarryJoe33

macrumors 68000
Original poster
Jul 17, 2017
1,566
505
Boston
Pardon for adding my own question about this. I want to turn in my old phone. Is this step part of the online order process or do I have to get the new phone and then do the turn in process. Also, if later then I get a Apple gift card - right - just what I don't need.
Are you referring to the Apple buy back program or the annual upgrade program? The buy back is through another company and they will send you a box and then when you send it back Apple with send you a gift card.