If you can't afford it without a loan, you can't afford a toy like the apple watch.
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Apple Card Monthly Installments Term for Apple Watch to Change From 24 Months to 12 Months
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Its literally free money. The Apple Watch Ultra is $799. If I put $799 into a HYSA, over the course of 24 months, it will make me at least 66 dollars. It makes more financial sense to take out the "loan" that is 0% interest than to pay off the watch up front. The smarter decision is to invest the $800 and pay off the watch with your gains.
I certainly can afford it. Why wouldn’t I take advantage of a free loan?
What they need to do is extend a Mac purchase to 24 months. 12 months on a $2000 computer is ludicrous
It shouldn't but this is the age of instant gratification apparently.
Some can't be bothered to save.
The pool of people likely to buy an iPhone is much larger than the pool for likely Mac buyers.
There’s probably also some residual inertia left over from the old industry practice of people being locked into a repeating series of two-year cellphone contracts, where the cost of the phone was somewhat built in to (or buried/hidden in) the cost of the service contract (which ended up with a whole lot of people thinking the actual cost of a phone was the $99 that the carrier charged them up-front).
How would shortening the payment period from 24 months to 12 months, which means monthly payments are now 2x before, result in a lower rate of late payments/defaults? 🤔
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Apple is providing that 12 months interest free. You could always put the Mac on a credit card instead and take however long you want to pay it off, but then there will be interest.
I don’t think that necessarily follows, that they want you to upgrade every 12
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I’m surprised to read all the smugness from some of you about how long people chose to pay off a 0% loan. Mind your financial business.
You'll have to explain to me the difference between
(a) pay computer off in 12 months, wait 12 months, upgrade to something new
vs
(b) pay computer off in 24 months then upgrade to something new
Aren't you paying the same amount in the end whether you choose path (a) or path (b) ?
Not that I would advocate for it, but it's definitely odd. At literally every other store, higher priced items are offered with longer terms. Also, Macs are typically long term purchases that people keep for several years. It's not like the vast majority of people are going to upgrade their Mac every year.
Best Buy is offering a 36-month Mac upgrade program, but that won't be an option for those that need or want BTO Macs.
$60/month(24 month) is allot easier to impulse buy/think about into a monthly budget versus $120/month(12 month). That is like adding a hefty Utility bill or two.
Didn’t see if someone mentioned this. But are these considered a loan on your credit score? In that case, having it in earlier is worse and using it regularly is also worse.
Unless you apply for a new credit card that's offering 0% APR for 15, 18 or 21 months *and* has a $200 sign up bonus offer + 2% cash rewards.
That's a better deal than what Apple Card offers.
No, it’s part of your Apple credit card. It just shows you are carrying a balance. Nothing else.
That's the main reason why I haven't used my Apple Card for a large purchase yet. When you already have good credit, at any given time you can get longer 0% terms, sign up bonuses, better rewards, etc. Also, like in the case of Best Buy, I can get a discounted price and get 0% finance.
Personally, I look at the total cost, not how much monthly payments will be over a 24 month or 12 month period.
People who go by how much monthly payment is are generally the ones who get into financial trouble.... like those who are buying a car and are focused on low monthly payments vs total price of car.
Starting August 15, the Apple Card Monthly Installments term for new Apple Watch purchases will change from 24 months to 12 months, according to fine print on Apple's website. This means each payment will be higher, but the Apple Watch will be paid off faster.
Apple Card Monthly Installments is an interest-free financing option available for most Apple products purchased with the Apple Card on Apple.com and at Apple retail stores. Customers can view their monthly installments, remaining balance, and payment history in the Wallet app, and the balance can be paid off in full at any time.
Apple offers a 24-month installment term for iPhones, a 12-month term for Macs and iPads, and a six-month term for AirPods and Apple TVs. Other eligible products and accessories are outlined in a support document on Apple's website.
(Thanks, Brandon Fawcett!)
Article Link: Apple Card Monthly Installments Term for Apple Watch to Change From 24 Months to 12 Months
I love it when people think a business sells something, lets a customer take 6,12,18,24,36 months to pay it off and it's interest free.. The interest is already in the price of the product. The company is going to get their money.
100% Agree, but I was just giving the reason why 24 months is more appealing to some folks.
The car example is something I have teach friends and family a lot. The dealerships try so hard to get to you tell your desired monthly payment so they can maximize the amount financed.
Stats on credit card debt indicates people are buying what they can’t afford.
99 percent of people are not doing what you are doing. They are buying what they don’t have then cash to buy.