So pay it off then. What’s stopping you?
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Apple Card Monthly Installments Term for Apple Watch to Change From 24 Months to 12 Months
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I took 24 months to pay off my Breitling. It was interest free, so why not?
People buying it on interest free installments from Apple are paying literally the same price as someone who pays for it in full immediately. While what you said could be true about other companies, it is not true with Apple.
I’m in the US & just bought 3 iPhone 14s. Two on 24 month 0% finance & looking at my statement = no cash back. The other one I paid full price up front & looking at my statement = 3% cash back.
I just bought 3 iPhone 14s. Two on 24 month 0% finance & looking at my statement = no cash back. The other one I paid full price up front & looking at my statement = 3% cash back.
Apple is probably worried about this given the state of the world economy at the moment. I might be mistaken (I'm not an accountant), but I believe that when Apple 'sells' a product the full price goes down as revenue/profit on their income statement even though they are only received 1/24 the money each month which boosts their top and bottom lines. You need to look at the cash flow statement to see the real situation where the 'to be paid' amount would go down as "accounts receivable" but financial analysts seem obsessed with 'income'.
How do you know that?
No - it's a system for Apple to keep selling ever-increasingly priced items to people whose real-terms income is falling
With interest rates higher, it’s becoming more expensive to offer interest-free promotions.
The way these programs typically work is that the bank pays Apple upfront based on what they expect to collect. So if a customer purchases a $480 item on a 24-month installment plan, Apple might get $400 today, which is its revenue. The rest goes to the bank to cover the cost of funds, credit losses, and the bank’s normal profit for lending.
I buy all of my Apple products this way. I always pay it off early, but getting 3% cash back on the entire purchase up front and the option to have no interest payments if needed is nice. There is really no downside unless you are poor with managing debt.
Lol this site is such a demographics bubble. There are a lot of people out there that depend on these types of plans for basic things. If it’s at 0%, I personally see no harm. Now, 20% would be a much different story. But 0? More of the risk is in apples side then the consumer at 0
When Macs get their 5G/6G modems then your country's telco may offer it on a 24/36/48 month contract.
Buy into the cheapest data plan.
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Did anyone notice they also are changing the details of iPhone purchases using Apple Card Installments? Looks like starting August 15, 2023 you won’t be able to finance an iPhone using Apple Card unless you have postpaid on AT&T, T-Mobile or Verizon.
I imagine there might be some anti-fraud angle to that, but it does seem unfortunate.
I like free money like the next person, but paying $15/month for my Apple Watch seemed silly. Apple should adjust the interest free payment plans based on amount. Less than 1k, 12 mos., more than 1k, 24 mos.
If you need to finance an Apple Watch, there are probably more important things in life that you should be concentrating on.
True. I can also see those carriers pushing for it since if you bought unlocked you could bypass the $35 upgrade fee. But unfortunately it sucks even more for people like me on MVNOs and not one of those "Big 3"
Yeah, I kind of feel the same way. The interest-free loan is nice, but from an organizational standpoint I'd rather clear the monthly recurring stuff quicker, especially for a comparatively cheap item.
I wish they would extend a Mac purchase to 24 months. I buy all my devices on payments (and typically pay off early) and the Watch is easy to chunk down. A MacBook Pro, which I would keep for many years, I wish, could be extended to a longer interest free term.
You can pay it off after 1 month if you wish. Why not have a longer term for those who want to pay for a device interest free over 24 months.
The working capital pick up is there, to be sure, but this is more likely related to default rates. Shortening the payback period will reduce defaults, and that's a bigger cost to them than anything related to having the cash sooner.
I agree, I think Goldman Sachs is pulling the strings here. They got a bunch of defaults and it scared them so bad the abandoned their own plans to enter the direct to consumer credit card market.
If only there was a way to pay off early. Though one does have to pay all devices off.