Upgrade Program: Too Good to Be True?

[bibigon]

Wait, don't I own the iPhone 7 after two years on the upgrade program? I understand I need to give them the 6S after a year to swap for 7, but after the 24 month term is up, what happens to my iPhone 7? I need to return it to Apple?

EDIT - Got it. Misunderstood the program. Upgrading the phone resets the 24 month payoff clock.

 

[16Paws]

Wait, don't I own the iPhone 7 after two years on the upgrade program? I understand I need to give them the 6S after a year to swap for 7, but after the 24 month term is up, what happens to my iPhone 7? I need to return it to Apple?

After the 24 months you own it.

 

[Knowimagination]

Wait, don't I own the iPhone 7 after two years on the upgrade program? I understand I need to give them the 6S after a year to swap for 7, but after the 24 month term is up, what happens to my iPhone 7? I need to return it to Apple?

When you turn in your 6s and get a 7 you are starting a NEW 24 month commitment, not simply completing your original 24 month commitment. So after 1 year with the 7 you either trade in for 7s, or you still owe 12 more payments.

 

[Supermallet]

Lets use your 6S and 7 logic by buying outright and selling. After two years you own your iPhone 7 outright.

44.91 per month on the 6s, you turn into apple and continue making payments on the 7 after a year (considering its in mint condition i assume?)

After two years you pay the 1077, and have a year left to pay on the 7, or turn it in for the 7s, but you own nothing in that process.

The difference is that can you sell your iPhone 7 after a year of ownership for more than $330? Yes you absolutely can.

Hope this helps and good luck!

Actually, with selling it's much more imperative that you keep it in mint condition. Gotta get the max resale value, after all. With the trade-in program, as far as I understand it, it just need to be in acceptable condition. Also extra convenient.

 

[JAT]

Except that new credit can hurt you by shortening your "credit history length". To determine history length they take all of your accounts and after their lives. So brand new credit can hurt you in some cases. Just keep that in mind. I am not saying it should be a deal breaker for anyone I am just saying it is a consideration.

True. But, should have shorter consequences, you do need credit to have a high score, also. This seems to be a good discussion:
https://www.nerdwallet.com/blog/credit-cards/credit-score/length-credit-history-fico-credit-score/

 

[bmms8]

Actually, with selling it's much more imperative that you keep it in mint condition. Gotta get the max resale value, after all. With the trade-in program, as far as I understand it, it just need to be in acceptable condition. Also extra convenient.

Understandable, but an acceptable 1 year old iPhone with 64 GB will go for more than $330 don't you think?

 

[Supermallet]

Yes, it likely would. So it just depends on how much you value your time. Walking into a store and saying, "Here's my old phone, gimme a new one" is a lot easier than babying it for 12 months, making a listing on a site, vetting offers, packing it up, shipping it, waiting for it to arrive, payments to come through, etc.

 

[batman75]

I currently have an iPhone 6 (64gb), and normally upgrade every two years. The total cost of the purchase every two years is about $790. With the new upgrade program, the yearly cost would be about $440 ($880 every two years). This seems like a great deal, if I'd want a new phone every year.

If I entered this program, do I have to turn in my iPhone 6 to Apple, or can I resell it on my own?

Also, the monthly fee doesn't seem to include sales tax, is that fee adjusted to include it?

If I decide not to upgrade to the next model, I assume I have to stay in the program for the full 24 months to pay off the current model phone, or can I just pay the difference right away?

Since this is a loan, basically, is there hidden interest somewhere?

Any answers would be greatly appreciated. Thanks.

I think it is not a good deal. Based on my experience it is cheaper to do AT&T NEXT 30, pay off the balance at the end of the first year, and then sell the phone on Craigslist (you will sell it for more than the payoff amount). Then get another one.

The depreciation divided by 12 months is about $25 a month, vs $40.75 on the Apple Upgrade Program, or $42.45 on the AT&T Next 12 program.

Also I don't particularly care for the AppleCare+ bundled in the apple program. I prefer the Worth Ave group insurance - has only $50 deductible, and also covers theft which AppleCare+ does not.