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Apple No Longer Offers Interest-Free Financing in Canada

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Apple stopped offering interest-free financing for new iPhone, iPad, and Mac purchases in Canada as of earlier this month, as noted on Reddit. Going forward, APRs range from 4.99% to 7.99% to finance these products over 12 or 24 monthly payments.

Apple-Store-Vancouver-Canada.jpg

For example, Apple says a customer who purchases an iPhone for $1,099 would have a monthly payment of $49.70 for 24 months. The customer would pay a total of $1,192.79 over this term, including $93.79 in interest charges.

The current financing offers available:
  • iPhone: 7.99% for 24 months
  • iPad: 4.99% for 12 months
  • Mac: 4.99% for 12 months
The change comes after Apple's financing partner PayBright was acquired by Affirm in 2021. Apple's website says financing is now provided by Affirm.

Many of Apple's financing options in the U.S. are not available in Canada, including Apple Card Monthly Installments, Apple Pay Later, and the iPhone Upgrade Program, leaving customers in the country with few options beyond Affirm.

Article Link: Apple No Longer Offers Interest-Free Financing in Canada
 
Article Link
https://www.macrumors.com/2023/06/27/apple-drops-interest-free-financing-in-canada/
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Once a company gets into making money on interest, the intoxication of that easy(est?) money can take over. Too many great companies in history eventually became IMO overly enamored on the finance operations such that all other things fell to second or lower priority. There is a near endless well of profit made on people's debt in that direction.

Hopefully, that won't be the case here, but the temptation will be great once the interest profits start to pile up. You think "services" revenue is something? Just wait if this policy spreads globally.

Interest profit has no product costs, no supply chain costs, no warehousing, etc. Some people will obviously take on any level of rate as long as the monthly payment hits some level, etc. Apple has a mountain of cash + credit to fund their own, for-profit financing operation. Literal bean counters can fully run this.

Spectacular for shareholders concerned with only one thing but TBD- at best- for us consumers. Making easy money on credit is near impossible to resist for those most concerned with "another record quarter in revenue & profit."
 
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I’m in the U.S. and while I’ve used Affirm in the past, I feel it’s predatory and not advantageous for the consumer. I’ve never used it after that one purchase but I agree that you shouldn’t finance electronics while paying interest. I also have Apple Card and while it has the ability to pay for Apple products interest free, I still don’t use it for that purpose.
 
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scheinderrob said:
nobody should ever finance electronics. if you have to, you can't afford it.
Click to expand...
Who's smarter, the person who pays $10,000+ up front for their Mac Studio and XDR display home studio setup or the person who takes advantage of Apple's 0% APR to buy the same setup and then take their time to pay it off over 12 months while freeing up those funds for something else (1 yr Treasury pays 5.33%, many 1 yr CDs pay 5%+)?
 
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sw1tcher said:
Who's smarter, the person who pays $10,000+ up front for their Mac Studio and XDR display home studio setup or the person who takes advantage of Apple's 0% APR to buy the same setup and then take their time to pay it off over 12 months while freeing up those funds for something else?
Click to expand...

that's probably why i said

interest-free is nice if you don't want a hit to your wallet but def not worth paying an APR
Click to expand...
 
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mother f%&^&*ers!

I was hopping to get the M2 Studio in the fall on 0% APR. Damn, now I have to pay the full amount on the spot.

As to those that think that if you can't pay it upfront you can afford it - here is little math for you:

if you pay on the spot you are actually losing value as if you pay in instalments you pay lets say 8% a month which means that at the beginning you have 92% extra money for your disposal - if you invest that money into something smart and get return on it (lets be conservative here and say 10%) then the product cost you less. Its far better to apply this as long as the initial APR for the product is 0%.

Sure, you carry a little risk here but if you have been doing this for a while you know how and where to invest with little risk. Extra discount on the product. Simple as that.
 
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Precisely what I mentioned as well. Those that buy upfront usually lose money than those that buy on instalments. Smart money always win :)

sw1tcher said:
Who's smarter, the person who pays $10,000+ up front for their Mac Studio and XDR display home studio setup or the person who takes advantage of Apple's 0% APR to buy the same setup and then take their time to pay it off over 12 months while freeing up those funds for something else (1 yr Treasury pays 5.33%, many 1 yr CDs pay 5%+)?
Click to expand...
 
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!!! said:
Why do people "need" to finance phones? Even if you argue you need a phone for life in the 21st century, there's no reason you need to spend $1000 on the latest iPhone that had tons of features you'll never use.
Click to expand...

Why do you care what people do? You do you.

About 50% of Americans finance their phones, a bit lower in Europe but not all are interest-free. Apple and many others would be very different size companies if it wasn't for finance.
 
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!!! said:
Why do people "need" to finance phones? Even if you argue you need a phone for life in the 21st century, there's no reason you need to spend $1000 on the latest iPhone that had tons of features you'll never use.
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I have no issue buying the phone outright it’s the paying for half the phone and getting to upgrade every year. I do use most the features.

Get burned once trying to sell on your own and it’s not worth it. The time, the vetting of buyers, and the predatory against sellers PayPal rules are not worth getting a couple hundred bucks extra.

So yes interest free finance for 12 payments and a yearly upgrade is the safest option.
 
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HobeSoundDarryl said:
Once a company gets into making money on interest, the intoxication of that easy(est?) money can take over. Too many great companies in history eventually became IMO overly enamored on the finance operations such that all other things fell to second or lower priority. There is a near endless well of profit made on people's debt in that direction.

Hopefully, that won't be the case here, but the temptation will be great once the interest profits start to pile up. You think "services" revenue is something? Just wait if this policy spreads globally.

Interest profit has no product costs, no supply chain costs, no warehousing, etc. Some people will obviously take on any level of rate as long as the monthly payment hits some level, etc. Apple has a mountain of cash + credit to fund their own, for-profit financing operation. Literal bean counters can fully run this.

Spectacular for shareholders concerned with only one thing but TBD- at best- for us consumers. Making easy money on credit is near impossible to resist for those most concerned with "another record quarter in revenue & profit."
Click to expand...

This isn't Apple running the financing in Canada.
 
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sw1tcher said:
Who's smarter, the person who pays $10,000+ up front for their Mac Studio and XDR display home studio setup or the person who takes advantage of Apple's 0% APR to buy the same setup and then take their time to pay it off over 12 months while freeing up those funds for something else (1 yr Treasury pays 5.33%, many 1 yr CDs pay 5%+)?
Click to expand...

100% the guy who pays up front.

Some people seem to think the 0% APR is "free" but it isn't. 0% financing means you can't buy through the edu portal, which everyone is eligible for.

$4,999 Pro Display XDR -> $4,599
$1,999 Mac Studio -> $1,799

That's $600 of immediate savings, not to mention the generous cash back you get from credit cards.
 
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sw1tcher said:
Who's smarter, the person who pays $10,000+ up front for their Mac Studio and XDR display home studio setup or the person who takes advantage of Apple's 0% APR to buy the same setup and then take their time to pay it off over 12 months while freeing up those funds for something else (1 yr Treasury pays 5.33%, many 1 yr CDs pay 5%+)?
Click to expand...
I agree, but there is the risk of accidentally missing a payment. Most 0% APR offers are actually deferred interest. You miss a single payment and all the high rate interest hits you retroactively.
I have only once taken up a 0% APR offer and it was for 72 months on a car. If you didn’t take the 0% offer you also missed out on $5000 off MSRP. On the other hand, I charge everything possible to a credit card and pay in full monthly therefore I get interest free for the billing period plus 2-15% cash back.
 
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only students and teachers are eligible. Just because Apple doesn't always check doesn't mean its open for everyone.
Also, if you pay upfront you lose money, not gain money as a lot of us above explained already.


JPack said:
100% the guy who pays up front.

Some people seem to think the 0% APR is "free" but it isn't. 0% financing means you can't buy through the edu portal, which everyone is eligible for.

$4,999 Pro Display XDR -> $4,599
$1,999 Mac Studio -> $1,799

That's $600 of immediate savings, not to mention the generous cash back you get from credit cards.
Click to expand...
 
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JPack said:
100% the guy who pays up front.

Some people seem to think the 0% APR is "free" but it isn't. 0% financing means you can't buy through the edu portal, which everyone is eligible for.

$4,999 Pro Display XDR -> $4,599
$1,999 Mac Studio -> $1,799

That's $600 of immediate savings, not to mention the generous cash back you get from credit cards.
Click to expand...

You still get 3% back on the Apple Card even with installments.

And most of us aren't buying for education reasons. Saying otherwise is dishonest.
 
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