iPhone Upgrade Program: Layman's Terms Please?

[81Tiger04]

I haven't purchased a new iPhone since the 6 a few years ago but am going to take the plunge on an 8 Plus. In the past, I have purchased in full from my provider, AT&T. With the IUP, though, I'm a little confused as to what I should do. I like the idea of paying in installments but I'm unsure of AppleCare+.

In short, how does the IUP work?

 

[BigMcGuire]

AppleCare+ is part of iUP. It is included in the monthly price.

I started my 6s+ on iUP May 2016. You pay the full tax outright and the first monthly payment ($44.xx/mo for a total of like $130.xx for first payment). You can upgrade after 1 year of payments have been made. After 2 year of payments the phone is 100% yours and you can sell it back. When you upgrade before the 2 years, you stop your current iUP, start a new one, and give them your old phone.

So, when I saw I could get the 8+ for $119 online (and having started my iUP in May 2016, I was well past my 1 year mark) - I spent 5 minutes online signing up for a new iUP, and was done. Got an email 15 minutes later from Citizens One saying my new iUP loan was approved, that my old iUP is frozen until I get my new phone in the mail and then I have 15 days to ship the old one back to get the old iUP cancelled.

My payment for my 6s+ was $44.xx/mo. My 8+ has a payment of $45.xx/mo. So about $1 more (little over) a month.

Pretty happy with iUP. Not happy with how long it takes in store to deal with iUP which is why I did it online last Friday (took me 5 mins and didn't involve me driving 1 hour+ to the nearest Apple store, making an apt, etc...).

 

[81Tiger04]

Thank you so much.

When you go to upgrade, how is your current iPhone valued for trade-in? Is it based on market value?

 

[BigMcGuire]

Thank you so much.

When you go to upgrade, how is your current iPhone valued for trade-in? Is it based on market value?

That's the hit. So if you trade in before the 2 years, you basically trade it in and get the rest of your iUP loan cancelled. So I had about $3xx left of payments on my iPhone 6s+. That gets cancelled soon as I mail back my 6s+ to Apple (they send a pre-paid mailer with my 8+), and I start my new iUP as soon as I get my 8+ in the mail (next week).

You're basically leasing the phone if you upgrade early. Which, some people like. Also, Apple emails you a SUPER EASY upgrade form to fill out online if you want (you can reserve phones in the store too if you prefer) under the iUP plan. Or, if you choose, keep the phone 2 years and it is 100% yours and you can sell it back.

By me upgrading early, I don't have to pay the $3xx I still owe on my 6s+ --- but I also get $0 for the phone. BUT, I also upgraded to the 8+ for only the cost of $45.xx + tax ($70.xx (California)) = $119. Instead of a $1100 kick in the bank, it is a 0% interest loan over the course of 2 years.

I am really happy with iUP so far. My goal is to keep my phone for 2 years so I can sell it but the temptation of upgrading to the iPhone 8+ for $119 was..... too much .

 

[kawalerzysta]

Thank you so much.

When you go to upgrade, how is your current iPhone valued for trade-in? Is it based on market value?

No value, Apple pays off reminder of the loan.

 

[elfxmilhouse]

That's the hit. So if you trade in before the 2 years, you basically trade it in and get the rest of your iUP loan cancelled. So I had about $3xx left of payments on my iPhone 6s+. That gets cancelled soon as I mail back my 6s+ to Apple (they send a pre-paid mailer with my 8+), and I start my new iUP as soon as I get my 8+ in the mail (next week).

You're basically leasing the phone if you upgrade early. Which, some people like. Also, Apple emails you a SUPER EASY upgrade form to fill out online if you want (you can reserve phones in the store too if you prefer) under the iUP plan. Or, if you choose, keep the phone 2 years and it is 100% yours and you can sell it back.

By me upgrading early, I don't have to pay the $3xx I still owe on my 6s+ --- but I also get $0 for the phone. BUT, I also upgraded to the 8+ for only the cost of $45.xx + tax ($70.xx (California)) = $119. Instead of a $1100 kick in the bank, it is a 0% interest loan over the course of 2 years.

I am really happy with iUP so far. My goal is to keep my phone for 2 years so I can sell it but the temptation of upgrading to the iPhone 8+ for $119 was..... too much .

Do you know how it works if you upgrade after making more than 12 months of payments? for example since the iPhone X is releasing in November there are a couple extra payments past the 12 month minimum. Will iUP give credit on those extra months or do we just lose out since we kept the phone for longer?

 

[neteng101]

When you go to upgrade, how is your current iPhone valued for trade-in? Is it based on market value?

You get nothing for it. Its like leasing a car, you turn it in and get a new one and start on a new monthly cycle. Unless you pay it off after 2 years, you've got 0 equity.

 

[81Tiger04]

So with the IUP ... Let's say I decide to upgrade after 12 months on my 8 Plus. The $474 I will have already paid is essentially down the drain and I'd then be in a contract for a new phone, which is presumably another $948? In sum, I'd have paid and be contracted for $1,422. Am I understanding this correctly?

 

[BigMcGuire]

Do you know how it works if you upgrade after making more than 12 months of payments? for example since the iPhone X is releasing in November there are a couple extra payments past the 12 month minimum. Will iUP give credit on those extra months or do we just lose out since we kept the phone for longer?

Yeah I started my iUP in May 2016. That meant May 2017 (this year) was my 1 year marker. So I upgraded after making 12 months + 4 months of payments. Same thing, I just send the phone back, the rest of my loan is cancelled.
[doublepost=1506006374][/doublepost]

So with the IUP ... Let's say I decide to upgrade after 12 months on my 8 Plus. The $474 I will have already paid is essentially down the drain and I'd then be in a contract for a new phone, which is presumably another $948? In sum, I'd have paid and be contracted for $1,422. Am I understanding this correctly?

Not necessarily down the drain, you just get to upgrade earlier for a lot less down. Like anything else, if you wait to pay it off, you reap the most $.

iUP just gives you a secure trade in to Apple (who pays off your remaining loan balance for the phone). But yes, keeping it 2 years is the most financially rewarding.

You don't HAVE to upgrade early . I plan on keeping my 8+ for 2 years, just like I did with my 6s+ (but ended up upgrading early, lol).

 

[81Tiger04]

Not necessarily down the drain, you just get to upgrade earlier for a lot less down. Like anything else, if you wait to pay it off, you reap the most $.

iUP just gives you a secure trade in to Apple (who pays off your remaining loan balance for the phone). But yes, keeping it 2 years is the most financially rewarding.

You don't HAVE to upgrade early . I plan on keeping my 8+ for 2 years, just like I did with my 6s+ (but ended up upgrading early, lol).

So if I am more likely to keep the 8 Plus for 2+ years, is there a benefit to the IUP?

 

[kawalerzysta]

So if I am more likely to keep the 8 Plus for 2+ years, is there a benefit to the IUP?

Main benefit is 0% financing, no need to front all of money when buying phone. Negative is that Apple Care is required withe program.

 

[BigMcGuire]

So if I am more likely to keep the 8 Plus for 2+ years, is there a benefit to the IUP?

Main benefit is 0% financing, no need to front all of money when buying phone. Negative is that Apple Care is required withe program.

Kawalerzysta is 100% right. I see no loss to it if I'm going to keep it 2 years with the advantage that I can upgrade within a year if I want. Also, my bank doesn't take a $1100 hit and I can spread it out over a 2 year period for 0% interest. I always get AppleCare+ anyway so yeah, I am a happy iUP user.

 

[81Tiger04]

Kawalerzysta is 100% right. I see no loss to it if I'm going to keep it 2 years with the advantage that I can upgrade within a year if I want. Also, my bank doesn't take a $1100 hit and I can spread it out over a 2 year period for 0% interest. I always get AppleCare+ anyway so yeah, I am a happy iUP user.

Didn't think about it that way. I guess I got trapped into the thought that I would have to upgrade. So is the Apple Installment Plan just the IUP but without AppleCare+?

 

[archer75]

So with the IUP ... Let's say I decide to upgrade after 12 months on my 8 Plus. The $474 I will have already paid is essentially down the drain and I'd then be in a contract for a new phone, which is presumably another $948? In sum, I'd have paid and be contracted for $1,422. Am I understanding this correctly?

Not really down the drain. Your phones value decreases anyways. Likely if you sold it on your own you may get right around that anyways. And for me, I'd be doing that every year anyways. This just saves me the hassle.
They just erase your loan when you turn in the phone after 12 months. Then you start a new 0% loan with the new phone.
[doublepost=1506010620][/doublepost]

Didn't think about it that way. I guess I got trapped into the thought that I would have to upgrade. So is the Apple Installment Plan just the IUP but without AppleCare+?

It includes applecare+. There's nothing you can do about that. It's part of the deal.

 

[BigMcGuire]

Not really down the drain. Your phones value decreases anyways. Likely if you sold it on your own you may get right around that anyways. And for me, I'd be doing that every year anyways. This just saves me the hassle.
They just erase your loan when you turn in the phone after 12 months. Then you start a new 0% loan with the new phone.
[doublepost=1506010620][/doublepost]
It includes applecare+. There's nothing you can do about that. It's part of the deal.

Perfectly stated. Yep.

 

[81Tiger04]

Perfectly stated. Yep.

I understand that the IUP has AppleCare+ and allows you to upgrade. With the Apple Installment Plan, though, you do not get AppleCare+ which is why it is $150 cheaper. Correct?

PS ... I apologize for all of the question and/or for sounding negative. The IUP is just new to me and I have a bunch of questions as a result. Thank you all for your help and patience.

 

[BigMcGuire]

I understand that the IUP has AppleCare+ and allows you to upgrade. With the Apple Installment Plan, though, you do not get AppleCare+ which is why it is $150 cheaper. Correct?

PS ... I apologize for all of the question and/or for sounding negative. The IUP is just new to me and I have a bunch of questions as a result. Thank you all for your help and patience.

No problem at all - more questions and more informed is always better!

I haven't ever done the AIP plan but I believe you're correct. No worries about sounding negative, you gotta do what is best for you.

 

[Rosewood23]

For those who have been on iUP can you make more than the monthly installment payment each month? I will be selling my old phone and would like to put that money down on the payoff once received then go back to the normal monthly amount. I know carriers payment plans only allow for the monthly payment to be made unless you pay off the entire phone.

 

[BigMcGuire]

For those who have been on iUP can you make more than the monthly installment payment each month? I will be selling my old phone and would like to put that money down on the payoff once received then go back to the normal monthly amount. I know carriers payment plans only allow for the monthly payment to be made unless you pay off the entire phone.

You can only if you call in. It's very painful and they do everything they can to keep you from doing more payments. You can't do it automatically online.

But you can call in and do payments or pay it off. They will do it if you ask.

 

[ggibson913]

So if I am more likely to keep the 8 Plus for 2+ years, is there a benefit to the IUP?

Yes, and this is a good benefit, all iPhones bought under IUP come to you unlocked. So if you are like me and are getting the notion to switch to T-mobile, I can without a problem.

 

[Mlrollin91]

I understand that the IUP has AppleCare+ and allows you to upgrade. With the Apple Installment Plan, though, you do not get AppleCare+ which is why it is $150 cheaper. Correct?

PS ... I apologize for all of the question and/or for sounding negative. The IUP is just new to me and I have a bunch of questions as a result. Thank you all for your help and patience.

If you do the Apple Installment plan, you cannot upgrade after 12 months. You must pay the phone off or start a new loan and continuing paying on the old one.

 

[81Tiger04]

For those of you that have purchased AppleCare+ in the past, do you feel it is worth it? Has it come in handy?

 

[Mlrollin91]

For those of you that have purchased AppleCare+ in the past, do you feel it is worth it? Has it come in handy?

I've never need to use AC+ for accidental damage, but for manufacturer defects, its more than handy. Having express replacement alone is worth it. You get overnighted a device instead of having to wait a week for an appointment at an Apple Store. I buy AC+ on all my devices, even on Macs now.

 

[BigMcGuire]

For those of you that have purchased AppleCare+ in the past, do you feel it is worth it? Has it come in handy?

I will never buy an iPhone without it. I've gotten several free replacements (after 1 year of ownership) it has paid for itself many times over. They treat you like royalty (at least at my local Apple Store) when you have AppleCare+ too. lol.

Nothing like having my phone fail, walking into an Apple Store the same day, and walking out with a new phone within 10 minutes for $0. This has happened twice to my wife and I.

Apple Care+ is worth every penny, and more. I highly recommend it.

 

[81Tiger04]

That's inspiring/reassuring to hear. Do you still buy a case for your iPhone? I ask because I have gotten a LifeProof in the past and thinking of doing the same with the 8 Plus. I feel like if I pay this much for a phone, I might as well protect it.