Apple Upgrade program: is it worth it?

[Neebee]

What's the catch? Apple makes it sound like you pay a monthly fee, say around $40 for 12 months and then you get a new iPhone each year.

Is it better than selling it on Craigslist when the new iPhone launches? Link is here: http://www.apple.com/shop/iphone/iphone-upgrade-program

 

[frozencarbonite]

I would like to know this as well. Specifically, I'd like to hear from some folks who have both the Plus and regular iPhone. If you don't mind saying,

• What are your payments?
• Any hidden fees?
• How do you make your payments?
• How was the sign-up process?

 

[RootBeerMan]

Tagging for the same interest. Almost time for us to upgrade again and I'm curious about the plan, as well as other options, now that contracts are a thing of the past.

 

[ray737]

I am also curious. I was initially thinking of paying the full price for the new phone then s lying it next year for the real new upgraded iPhone "8" but I read that you're almost better off doing the apple upgrade deal. No need to try to sell your old iPhone blah blah just turn it in and get the new one then you can decide to keep it for a year or after 2 years it's yours.

 

[appygirl82]

I have (had) 2 phones on the AUP. My husband and I both signed up for it last year at the launch of the 6s+ last year. Recently I paid mine off and sold it. (Long story, went to Android, hated it). I now plan to get the 7+ at launch and get back on the plan.

No hidden fees, you sign up for it. They run a credit check and the phone is financed through Citizens Bank. I had the 64g 6s+ and my payment was $40.75/mo. My husband had the 128g and his was $44.91. Those payments include the AppleCare that you get with the phone. After 1 year (12 payments) you are eligible to upgrade. Nobody really knows the exact scenario for the upgrade as this will be the 1st year. Most would assume you are able to get the new phone and then will have a period of time to return your old one to Apple. But we will soon find out.

I like the AUP, I think it was good. It's just breaking down the cost of the phone, plus the AC into 24 payments and you can upgrade after 12. There is no penalty for paying it off early either.

Last year the sign up process could only be in store. Since then, they have set up the AUP to be done online. I am really hoping it stays that way for the 7 launch. Having to do it in store was a pain. You have to use a CC to sign up, the payments will be charged to your card each month. I never switched mine over but people said you could change the payment method over to your debit card or another card after set up but I was not aware of that. Not really a huge deal to have it on the CC just as long as you make the payment to the card each month to avoid interest charges.

 

[PhoenixDown]

Don't have the #'s in front of me at the moment but when I looked into it, it looks like a good deal if you plan to upgrade your phone each year AND you always get apple care. I think it was like $20 more a year over what it would cost to pay for the phone monthly over 2 years.

My review didn't factor in selling a good condition fully owned phone each year.

For me, it is cheaper to buy the phone on contract since I don't get a reduction if I buy a phone outright or lease it but I may be an exception in this case.

 

[walt7788]

The only thing that is holding me back from this is whether they would have to do a hard credit check every year. One time would be ok (even though a hard credit check for a phone--not a car or a house--is not ideal), but if they have to do it every year of you want to upgrade, that's a deal breaker for me.
Otherwise, I like that they give you AppleCare +.

 

[azentropy]

The only thing that is holding me back from this is whether they would have to do a hard credit check every year. One time would be ok (even though a hard credit check for a phone--not a car or a house--is not ideal), but if they have to do it every year of you want to upgrade, that's a deal breaker for me.
Otherwise, I like that they give you AppleCare +.

They don't give it to you, it is included in the payment and there isn't an option to not include it.

 

[Neebee]

What's confusing me is that there is a two year commitment.

In my case, I need a new phone now. However, my preferred phone is next year's iPhone. I was planning to buy the 2016 version and sell it next year and use the proceeds to get the much improved and different form factor iPhone 2017.

With the two year commitment does that mean I have to buy a 2018 version as well?

 

[azentropy]

What's confusing me is that there is a two year commitment.

In my case, I need a new phone now. However, my preferred phone is next year's iPhone. I was planning to buy the 2016 version and sell it next year and use the proceeds to get the much improved and different form factor iPhone 2017.

With the two year commitment does that mean I have to buy a 2018 version as well?

Nope, but you would have the option to. Just remember each time you exercise it you start over a 2 year payment plan.

 

[sjsharks13]

What's confusing me is that there is a two year commitment.

In my case, I need a new phone now. However, my preferred phone is next year's iPhone. I was planning to buy the 2016 version and sell it next year and use the proceeds to get the much improved and different form factor iPhone 2017.

With the two year commitment does that mean I have to buy a 2018 version as well?

In the fine print of the contract it says that you can exercise your upgrade after 12 made payments per phone. So everyone that got the latest upgrade the first month can take their phone to the Apple Store when new phone comes out to upgrade. The payments are set up so that your phone would be paid off in two years but you can upgrade after 1 and then it's just a continuous cycle. What pisses me off about the program is that it looks like you have to go through a hard credit pull every year and I think that's BS. I have the AUP but have been considering going to next. Since I have an established relationship with citizens one I shouldn't have to go through a new credit check every year.

 

[Neebee]

In the fine print of the contract it says that you can exercise your upgrade after 12 made payments per phone. So everyone that got the latest upgrade the first month can take their phone to the Apple Store when new phone comes out to upgrade. The payments are set up so that your phone would be paid off in two years but you can upgrade after 1 and then it's just a continuous cycle. What pisses me off about the program is that it looks like you have to go through a hard credit pull every year and I think that's BS. I have the AUP but have been considering going to next. Since I have an established relationship with citizens one I shouldn't have to go through a new credit check every year.

I hear you. I am in Canada. And guess what, we don't have this upgrade program. I can't qualify because I don't have a US credit history.

 

[0970373]

What's the catch? Apple makes it sound like you pay a monthly fee, say around $40 for 12 months and then you get a new iPhone each year.

Is it better than selling it on Craigslist when the new iPhone launches? Link is here: http://www.apple.com/shop/iphone/iphone-upgrade-program

Well, to clarify, it's a loan and you pay monthly installments on the loan. It's a 24 month payment plan with the option to trade in your iPhone after 12 mo and upgrade to the new phone. When you turn it in, the return of the phone to Apple basically "pays off" your old loan and you start a new loan with a 24 month installment plan.

You can pay off the entire loan at any time you like without penalty. It's not like the cell phone installment plans where it's tied to your cell phone account or plan.

You absolutely do not have to upgrade every year if you do not want to. You could choose to keep the phone you took the loan out on and stick with the 24 month payment plan. You could sell the phone and still make monthly payments if you wanted though I don't see why anyone would want to.

But the great benefit of the AUP is being able to upgrade every year and not have to bother with selling your 1 year old phone in a saturated market every year. Depends on you if you find that "worth it." I do.

 

[ray737]

Well, to clarify, it's a loan and you pay monthly installments on the loan. It's a 24 month payment plan with the option to trade in your iPhone after 12 mo and upgrade to the new phone. When you turn it in, the return of the phone to Apple basically "pays off" your old phone and you start a new loan with a 24 month installment plan.

You can pay off the entire loan at any time you like without penalty. It's not like the cell phone installment plans where it's tied to your cell phone account or plan.

You absolutely do not have to upgrade every year if you do not want to. You could choose to keep the phone you took the loan out on and stick with the 24 month payment plan. You could sell the phoned still make monthly payments if you wanted though I don't see why anyone would want to.

But the great benefit of the AUP is being able to upgrade every year and not have to bother with selling your 1 year old phone in a saturated market every year. Depends on you if you find that "worth it." I do.

Great post. I never really thought about this program before because was thinking about paying full price then selling my phone a year later to get the 2017 iPhone. I like being able to turn in the phone and get the new one without going on eBay to sell my phone.

 

[0970373]

Great post. I never really thought about this program before because was thinking about paying full price then selling my phone a year later to get the 2017 iPhone. I like being able to turn in the phone and get the new one without going on eBay to sell my phone.

Yes, that's why I like it too. But do remember that it's a loan every year aka it will be a hard pull on your credit. Not a big deal if you have pretty good credit and don't open a bunch of new accounts every year. But something to be aware of.

 

[THE JUICEMAN]

I'm definitely looking forward to trying this plan out. It's more expensive than the carriers but I'll take the apple care protection and idk anyone that would prefer to deal with carrier customer service over apples.

 

[boomhower]

I'm sticking with NEXT. The hard pull every year is a deal killer, it's ridiculous. If you've had for a year and never late on a payment they don't need to do another hard pull. Should be more like a revolving line of credit than a loan.

 

[PhoenixDown]

They should do a soft pull if anything. Not sure why a hard pull would be required

 

[off_piste]

Do we know for certain they will do a hard credit check when renewing AUP?

 

[Nalmond92]

I hope they bring this to the UK with the iPhone 7!

 

[urkel]

Its funny because the concept of a phone lease just sounded like a rip off. Why pay for a product that you don't own. But after two years of being on an Easy Pay/Lease program then its not so bad.

My iPhone 6S+ 64GB is in perfect condition. With my Sprint plan I've only paid $267 this year to "borrow" it and I have an option to either buy it out for $450 OR trade it in for the iPhone 7. I'm not sure what I'll do yet but I'll probably just trade it in because the convenience of trading it in seems to be more pleasant than the hassle and risk of reselling on a more competitive and less profitable resale market.

 

[0970373]

Do we know for certain they will do a hard credit check when renewing AUP?

Well since it's only the 2nd year and the new phones aren't out yet, technically, no. But it's what people who have inquired have been told. I guess we'll find out for sure. I had also hoped they'd do a soft pull once you've established a history with them.

 

[frozencarbonite]

Does anyone know what this clause means from the AUP terms & conditions?

• Credit Card Interest and other fees. You will be charged 0% APR on the Installment Loan. However, the issuer of your credit card may charge you interest or other fees under the terms and conditions in your cardmember agreement. This may include any applicable interest on unpaid balances or late payments. Your card issuer may not provide certain benefits in connection with loan payments charged to your card.

So does this mean that you are really still paying interest through your credit card? If this is a separate loan through Citizens Bank, why would any interest fee through your credit card be charged?

 

[ray737]

Does anyone know what this clause means from the AUP terms & conditions?

• Credit Card Interest and other fees. You will be charged 0% APR on the Installment Loan. However, the issuer of your credit card may charge you interest or other fees under the terms and conditions in your cardmember agreement. This may include any applicable interest on unpaid balances or late payments. Your card issuer may not provide certain benefits in connection with loan payments charged to your card.

So does this mean that you are really still paying interest through your credit card? If this is a separate loan through Citizens Bank, why would any interest fee through your credit card be charged?

I assume they're saying when you pay your monthly payment via credit card your credit card company charges you interest just like a normal purchase would.

 

[frozencarbonite]

I assume they're saying when you pay your monthly payment via credit card your credit card company charges you interest just like a normal purchase would.

Ah..ok. That makes sense.