Other CANADA iPhone 14 (All Models) Pre-Order, Pick-up & Delivery Thread (2022)

[r.d]

I’m doing the trade-in as well. At least there’s the tax savings!

 

[1BadManVan]

I’m doing the trade-in as well. At least there’s the tax savings!

tax savings and convenient overall. I would honestly opt in for like a yearly subscription service to just pay a flat monthly amount and trade up each year but this is the next best thing lol.

I assume since I used the paybright financing through apple that when I trade in this phone to apple, they will adjust the payments and all that to my financing

 

[MG999]

Ill be doing the same thing I did last year and use pay bright 0% instead of going through Telus since my current Telus contract doesn't exist anymore lol. I get all my iPads on my data plan for free, Telus only offered it for like a year and got rid of it but I have 5 iPads on it. Saves me $50 right there

Apple is offering $905 for my 13 pro max to trade in. Sure I could get more selling private but hate the hassle and haggling.

I was getting 855 on Apple for trade in of 13 pro max 128 gb.

Put it up on Kijiji and got someone who wants it for a 1000.

Last year, I actually sold my 12 pro Max for 1200.

Def hit or miss and can be a hassle. Was debating wether I should trade in as well, but lets see.

 

[Mavik91]

I will be doing the same - Trade-in and Paybright. 0% APR is worth it.

 

[Mr.JARE_ee]

Wait.. is there actually tax savings for a trade in? I don't recall my last trade-in.

 

[MG999]

Wait.. is there actually tax savings for a trade in? I don't recall my last trade-in.

This is a good point I didnt consider...

 

[r.d]

tax savings and convenient overall. I would honestly opt in for like a yearly subscription service to just pay a flat monthly amount and trade up each year but this is the next best thing lol.

I assume since I used the paybright financing through apple that when I trade in this phone to apple, they will adjust the payments and all that to my financing

See, this is where I haven't seen any information. From what it seems like, each item you purchase from Apple with Paybright has its own loan and payment schedule (i.e. if you purchase a Mac and an iPhone, each will have its own Paybright loan and payment amount). So assuming this, you have an existing Paybright loan for an iPhone 13, that is treated separately. So even if you trade in or sell the phone, the Paybright loan will continue, until you manually pay it off (since the iPhone loans are 24 months). I doubt Apple is tracking serial numbers on Paybright loans in Canada. But hey, I guess we'll find out tomorrow!

 

[r.d]

Wait.. is there actually tax savings for a trade in? I don't recall my last trade-in.

This is a good point I didnt consider...

Yup, you only pay tax on the net total after trade-in when done so in the same transaction (same way as trading in a car, or any other product).

Example:

New iPhone: $1,200
Trade-in Value ($700)
Net Total: $500
Tax: $500 x Tax amount

So in this example, you only pay tax on $500 instead of $1,200.

 

[Mr.JARE_ee]

Yup, you only pay tax on the net total (same way as trading in a car, or any other product) when done so in the same transaction.

Example:

New iPhone: $1,200
Trade-in Value ($700)
Net Total: $500
Tax: $500 x Tax amount

So in this example, you only pay tax on $500 instead of $1,200.

Interesting..

 

[1BadManVan]

See, this is where I haven't seen any information. From what it seems like, each item you purchase from Apple with Paybright has its own loan and payment schedule (i.e. if you purchase a Mac and an iPhone, each will have its own Paybright loan and payment amount). So assuming this, you have an existing Paybright loan for an iPhone 13, that is treated separately. So even if you trade in or sell the phone, the Paybright loan will continue, until you manually pay it off (since the iPhone loans are 24 months). I doubt Apple is tracking serial numbers on Paybright loans in Canada. But hey, I guess we'll find out tomorrow!

Only reason I think it works differently is this quote from the apple store app when I go t get a value from my trade in "If you pay monthly, we'll apply the value as an instant credit" As far as I know, paybright is the only monthly option offered through apple

 

[MG999]

Yup, you only pay tax on the net total after trade-in when done so in the same transaction (same way as trading in a car, or any other product).

Example:

New iPhone: $1,200
Trade-in Value ($700)
Net Total: $500
Tax: $500 x Tax amount

So in this example, you only pay tax on $500 instead of $1,200.

This makes it very interesting...

With my trade in value of 850 and tax savings of 110.50 = theoretical value of 960.50.

Plus I assume when you trade in, you just send the phoen back so you keep the USB C charging cable ($28.25 saving).

That puts the total theoretical value at 988.75... and Im selling on Kijiji for 1000....

Might end up just doing the trade in...

 

[r.d]

Only reason I think it works differently is this quote from the apple store app when I go t get a value from my trade in "If you pay monthly, we'll apply the value as an instant credit" As far as I know, paybright is the only monthly option offered through apple

The quote "we'll apply the value as an instant credit" just means that the PayBright total loan amount will start at the price after trade-in, for the current transaction.

Example:
New iPhone: $1,200
Trade-in Value ($700)
Net Total: $500 <-- amount of PayBright loan from the start

This differs if you don't use PayBright. If you purchase an iPhone with a trade-in without using PayBright, Apple will charge you for the full amount of the new phone, and then only credit/refund the trade-in amount after receiving the phone.

So essentially, PayBright is applying the trade-in amount right away. However, if you don't send in the trade-in, PayBright will then charge you for the full trade-in value as a lump sum payment ($700 + tax in the example above).

 

[r.d]

This makes it very interesting...

With my trade in value of 850 and tax savings of 110.50 = theoretical value of 960.50.

Plus I assume when you trade in, you just send the phoen back so you keep the USB C charging cable ($28.25 saving).

That puts the total theoretical value at 988.75... and Im selling on Kijiji for 1000....

Might end up just doing the trade in...

Correct. You only send in the phone itself. No cables, chargers, cases, or anything else.

Just remember to restore the phone and remove it from iCloud.

 

[nasa25]

I’m doing the trade-in as well. At least there’s the tax savings!

How’s there tax savings?

From what I see when paying via paybright you pay all taxes on full value of the phone upfront and then the trade in is instantly credited from the pre tax total and divided over 24 payments.

As an example I’m trading in my 256gb 12 pro max for $655 and getting a 256gb 14 pro max for $1699.

I’ll need to pay $221 in tax (13% HST) up front to paybright and then $1,044 remainder due is charged at $43.50 per month.

I was thinking I’d be able to save taxes on the trade in as well but unfortunately that isn’t the case.

 

[1BadManVan]

The quote "we'll apply the value as an instant credit" just means that the PayBright total loan amount will start at the price after trade-in, for the current transaction.

Example:
New iPhone: $1,200
Trade-in Value ($700)
Net Total: $500 <-- amount of PayBright loan from the start

This differs if you don't use PayBright. If you purchase an iPhone with a trade-in without using PayBright, Apple will charge you for the full amount of the new phone, and then only credit/refund the trade-in amount after receiving the phone.

So essentially, PayBright is applying the trade-in amount right away. However, if you don't send in the trade-in, PayBright will then charge you for the full trade-in value as a lump sum payment ($700 + tax in the example above).

hmm.. interesting.. That makes this a bit more complicated then lol. May just opt to sell it privately so I can just pay off the amount in full instead of having two separate loans going.

This is why I want a subscription service! lol

 

[r.d]

How’s there tax savings?

From what I see when paying via paybright you pay all taxes on full value of the phone upfront and then the trade in is instantly credited from the pre tax total and divided over 24 payments.

As an example I’m trading in my 256gb 12 pro max for $655 and getting a 256gb 14 pro max for $1699.

I’ll need to pay $221 in tax (13% HST) up front to paybright and then $1,044 remainder due is charged at $43.50 per month.

I was thinking I’d be able to save taxes on the trade in as well but unfortunately that isn’t the case.

The tax savings are as follows (using your example):

You will be paying tax on $1,044 ($1,699 - $655), and not on $1,699.

So, you will pay $135.72 ($1,044 x 13%) of tax, instead of $220.87.

 

[nasa25]

The tax savings are as follows (using your example):

You will be paying tax on $1,044 ($1,699 - $655), and not on $1,699.

So, you will pay $135.72 ($1,044 x 13%) of tax, instead of $220.87.

Nah man I wish but it’s not like that. Trust me I looked into it. I did mock purchases before and the full value of the tax was applied.

 

[r.d]

hmm.. interesting.. That makes this a bit more complicated then lol. May just opt to sell it privately so I can just pay off the amount in full instead of having two separate loans going.

This is why I want a subscription service! lol

Yeah, a subscription would be nice (similar to the iPhone Upgrade Program in the US). But who knows, maybe Apple & PayBright will implement something starting tomorrow to pay off the old loan. We shall see!

 

[r.d]

Nah man I wish but it’s not like that. Trust me I looked into it. I did mock purchases before and the full value of the tax was applied.

I've done several purchases with trade-ins and the tax is always based on the net amount after trade-in.

Also, see below directly from the CRA on how tangible trade-ins are handled in Canada:
https://www.canada.ca/en/revenue-ag...ice-change-b-084-treatment-used-goods.html#h4

 

[nasa25]

I've done several purchases with trade-ins and the tax is always based on the net amount after trade-in.

Also, see below directly from the CRA on how tangible trade-ins are handled in Canada:
https://www.canada.ca/en/revenue-ag...ice-change-b-084-treatment-used-goods.html#h4


View attachment 2054074

That’s the correct way (ie like when you trade in a car) but based on what I see being done by paybright it’s not the way they do it.

But I hope I’m wrong when the transactions occur tomorrow.

 

[r.d]

That’s the correct way (ie like when you trade in a car) but based on what I see being done by paybright it’s not the way they do it.

But I hope I’m wrong when the transactions occur tomorrow.

Please report back tomorrow! 👍

 

[nasa25]

Here’s an example of an iPhone 13 purchase if I were to trade in my 12 pro max. I’d assume the taxes would be $99.32 but they show as $184.47.

 

[Mr.JARE_ee]

I've checked my last trade in last year, and can confirm its only tax after the rebate amount. Will be trading in for sure now. Thanks OP.

 

[nasa25]

I've checked my last trade in last year, and can confirm its only tax after the rebate amount. Will be trading in for sure now. Thanks OP.

Sweet!!! That’s really how they should be doing it so makes sense.

I guess their checkout page needs to be updated with correct data.

 

[r.d]

View attachment 2054081
View attachment 2054082

Here’s an example of an iPhone 13 purchase if I were to trade in my 12 pro max. I’d assume the taxes would be $99.32 but they show as $184.47.

I see what you mean. I think that's why it says "Estimated Tax". Once the transaction goes through and settles, you will only get charged tax on the net amount. I agree, the way it's shown is confusing.

Apple would be in hot water with the CRA if they didn't account for taxes correctly LoL