Apple Card Monthly Installments Term for Apple Watch to Change From 24 Months to 12 Months

[amartinez1660]

Probably shouldn't be taking 2 years to pay off a watch anyway...

Glad this is still an option, though, it's definitely a nice perk of the Apple Card, IMO.

Agreed that it’s an amazing option. Paying full price at today’s money value is just a bad deal when that money could be used elsewhere.
Granted, the best decision money wise is to not buy a watch if it isn’t needed or not gonna be used.
Me personally I bought the first SE and since then have been jogging 5 to 10K daily (and longer runs one day of the weekend) religiously. Best device lifestyle ever, personally.
It’s great and paying it at 0% rate comfortably? even better.

No interest on 24 months is an amazing deal. Why would anyone NOT want that? Especially since most people don’t upgrade yearly.

Exactly, I just bought a band, and even having had the money several hundred times fold, $8 a month for a year (at 0%) is so easy! I’ll skip just one of those daily caramel macchiatos and use it that to pay it instead. Won’t really feel it. Makes no sense to part ways with today’s money if there’s no penalty for parting ways a year later.

The last $8 payment will be so devalued by the end of this full year of such high inflation and interest rates that those Starbuck’s mocha lattes will be likely $10+ or more. While the payment is still $8.
Pro tip: I actually drink and eat a total of never americanos with a side of bacon Gouda cheese sandwich, so I could have bought 30 bands and still spend less than the average daily Starbucks goer (or pick any vice here: smoking, snacking, etc).

In a more serious note, I don’t get the sentiment, that “if you have to borrow then you can’t afford it” remark… sure I can think of many similar that hit harder:
- “if you need to rely on daycares to be able to continue to work to pay for your car lease then you love your things more than your kids (and actually can’t afford them)”
- heck, let’s stretch it to any sort of financing, mortgage, etc. Why not, if a watch at 0% is already “you can’t afford it” then >0% loan is even more so.

If you need an apple product and have the 0% option, just use it. And the 24 months to 12 months is actually a perk lost, albeit minor.

Yes, flaming comment, but so is the financially weak snark remarks, just bringing it to real levels.

 

[dannyyankou]

I wish every item is 12-month. 24-installment plan is simply too long for an iPhone.

You can pay it off early if you want.

 

[amartinez1660]

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.

Exactly, I don’t care what other people are doing or who does what or how correctly or incorrectly. This is statistically, mathematically and logically the only conclusion to make.
Whether someone takes that decision or not is besides the point.

Let’s assume a 7.2% inflation, it takes 10 years for a set amount of money to lose half the value… if you where to take a 0% loan on an apple watch for 10 years, the last payment would be effectively be discounted by 50%.

 

[Lucas Curious]

system to keep broke people in debt

 

[FelixDerKater]

There is nothing preventing someone from paying off the loan early. The problem is too many people get in over their head with the enticement of small monthly payments.

And yet the carriers are pushing these out to three years...

 

[MNGR]

I wish every item is 12-month. 24-installment plan is simply too long for an iPhone.

So just double up your payments

 

[trip1ex]

appreciated this clarification:

"This means each payment will be higher, but the Apple Watch will be paid off faster."

 

[cmChimera]

I can't find this info on the Apple website?

 

[CarlJ]

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.

Business expenses are always built into the company‘s finances, but the company (in this case, at least) isn’t charging the “0% for 12 months” customers a separate higher price than those who walk in the door with a shoebox full of $20’s.

 

[McTaste]

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.

How does $66 in gains pay off your $800 loan?

 

[Algus]

How does $66 in gains pay off your $800 loan?

That's $66 you won't have if you pay in full instead of taking out the 0% interest loan and banking the money

Or to look at it another way, you get a $66 discount if you finance it at 0%

Keep in mind you don't get the $66 if you don't have the money in the first place. The key is to have the money to buy the product and let that money sit during the course of your loan.

 

[minik]

I can't find this info on the Apple website?

If you click on the 'Pay 0% APR when you choose Apple Card Monthly Installments at checkout' pop-up and read the bold fine print.

 

[Lakersfan74]

So just double up your payments

Then you are no longer interest free. You only get interest free at the 24 mo term, do it in 12 and they tack on 12 mo of interest. Now that its going to 12 mo you get interest tacked on if you try and do it in 6 mo.

 

[spartan1967]

whatever length, it's interest free and you get 3% cashback ... and if you have it, move the remaining balance (full price minus 1st installment) into the Apple/GS savings account and then pay monthly from there

There is no cash back when you pay monthly installments on Apple hardware. Only if you pay the full price up front.

 

[svish]

Interesting changes. Apple will like customers to upgrade more often.

 

[sevoneone]

Then you are no longer interest free. You only get interest free at the 24 mo term, do it in 12 and they tack on 12 mo of interest. Now that its going to 12 mo you get interest tacked on if you try and do it in 6 mo.

That isn’t true. At least in the US. There are no penalties for paying it off early. I bought a 14” M1 Pro on a 12 month installment and paid it off in 8 months. No interest paid.

There is no cash back when you pay monthly installments on Apple hardware. Only if you pay the full price up front.

This is also not true (again US, don’t know about other countries). You get the full 3% no matter if you purchase outright or use the 12 month special financing.


Edit to add: Jeez people, Apple is not out to get you with these deals. There is no motivation for them to upset a potential long term customer by doing shady stuff, especially money. While you may be paying them over time, they get to claim the full sale on their quarterly share holder report. The positive impact on their stock price is more than worth whatever it costs them to provide 3% back + 0% for 12 mod.

 

[Apleeseed84]

I think when they went with the phones at 24 months it was in line with what cell phone companies did withtheir 2 year upgrade model.

It's a bit different because we paid like 1/4 of the phone upfront, with the whole 200 down premise and two years contract, that whole scheme was for carriers to keep you locked in their cell phone, as a matter of fact since we pay no money upfront on regular carriers unless your credit's messed up, the big carriers are getting away with 36 month contracts which is garbage, same goes for watches and tablets. You can't upgrade yearly anymore, it's like half of that amount which would be 15 months now.

Hopefully the carriers take notice of this and change the months down

 

[iSlicer]

Apple One hardware subscription coming soon.

You will own nothing, and you will be happy! Right?!?

 

[iSlicer]

The Beauty of Late Stage Capitalism 😍

Oh yes. Love hearts and all. I can see you are salivating for what replaces it. Good Luck!

 

[ChrisA]

I wish every item is 12-month. 24-installment plan is simply too long for an iPhone.

Why? If Apple offered me a 2,000 year interest free loan for a watch, I'd take it in a minute. When there is zero interest there is no downside to a longer loan.

I just bought a $1,200 Mac Mini. Apple offers me a 2 year zero interest loan. I could have paid in cash but I took the loan. My $2K is earning about 1.5% if I keep it in the bank. Also with inflation at maybe 5% I will be paying Apple back with money that is worth less. The Money I will give them is less valuable than the money they gave me. So I'm making a tiny amount of money by accepting Apple's loan. (I think I make $5 or $7. I'm too lazy to work it out exactly)

And Apple is losing a tiny amount of money. THIS is the reason Apple is dialing back the free loans. Apple makes more money by NOT offering a 2 year loan. Some bean counter did the math.

But again, there is no such thing as a free loan that is too long.

 

[F23]

You will own nothing, and you will be happy! Right?!?

yes, don't care about owning disposable gadgets.

 

[dancefreak]

Then you are no longer interest free. You only get interest free at the 24 mo term, do it in 12 and they tack on 12 mo of interest. Now that its going to 12 mo you get interest tacked on if you try and do it in 6 mo.

It doesn’t work that way. You can payoff the entire balance in month 1 with no penalty if you wanted just like any other no interest store financing program.

There is no cash back when you pay monthly installments on Apple hardware. Only if you pay the full price up front.

You get 3% of the total in cash back no matter how you pay with Apple Card. The total cash back is given at the start rather than at each payment if doing installments.

 

[RobArtLyn]

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? 🤔

The shorter the period of the loan, the lower the possibility that the borrower’s financial situation will change.

 

[zapmymac]

The vast majority of people here do not NEED an Apple Watch, laptop, desktop, iPad, or iPhone.

A cheap Windows/Linux machine WILL allow you to get what you need done, probably with free software to boot. Those that require it for work, then your work can pay for it.

We choose to purchase what we purchase for many different reasons, the least of which doesn’t require your condescension/judgment on what some random person on the Internet may or may not be able to afford.

It’s none of your business.


Not everybody had great parents.

Not everybody has learned your business lessons…yet.

Not everybody grew up upper class middle America.

FOR EXAMPLE: I grew up on an Indian Reservation, didn’t see/interact w/ ANY computer until I was in 7th grade.

While in the Navy, part of my job was to mentor the young enlisted, the WIDE range of backgrounds is shocking, but it also makes America unique & great: we’re not homogenous.

Their finances will probably
Get There, some won’t, you do a disservice by publicly berating them on Internet forums. Let them live their lives. If you think you have so much knowledge to impart on the vast majority of people, please do outreach and mentor them. Or join the military, we always need people of every type.

 

[Mr. Dee]

I took advantage of this, but found it annoying. I just want to pay it off and be done with it.