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Other Is the iPhone Upgrade Program worth it?
- Thread starter ilex27
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- iphone 13 pro max
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Yep, I always got AppleCare and was always paying my carrier an early upgrade penalty fee for breaking my 2 year contract to get the newest iPhone. The IUP program was a win win for me.
Oh credit is not a problem for me either but I’d rather not get it run through my credit every year just for a phone.
one small correction: You pay Citizens via your Apple Card if you want 3% cash back. if you dont want that or dont have the Apple Card then you still pay Citizens!
What if you only have / want Apple Card?
Do you still need to go through Citizens for the upgrade program?
Do you still need to go through Citizens for the upgrade program?
so the loan is through Citizens. Apple Card is just a way to pay the loan. You can use any other card or bank to pay as well!
Yes; ive had it the last three years and ive been able to get a new iPhone from my local store at 7 am release day and come into work the same day. Includes AppleCare and you get 3 percent back if you use Apple Card... no brainer for me
In the end, this was why I got into this program. It amounts to renting the iPhone, which I'm totally ok with.
Wife and I’ve been on the IUP since the iPhone 11. I love new tech and love the convenience of the program so it’s totally worth it for me. We go pickup in the store, we enjoy the whole ritual of it!
Also I hate using a case on my phones and Apple care takes away fears of damaging it, so another plus for me. And as mentioned Apple Card gives back 3%.
For us, it’s well worth it.
Also I hate using a case on my phones and Apple care takes away fears of damaging it, so another plus for me. And as mentioned Apple Card gives back 3%.
For us, it’s well worth it.
The first two years of the program where they required us to go to the store to pick up the phone were so painful on launch day. Even with a "reservation" I had to wait over two hours each time. So glad we have the option of shipping now.
And yet when I bought a 10s MAX, I bought it over the internet from the Apple website, at the store I was going to be near, and I just walked right in, past all of the others waiting to buy one, I assume without an appointment, and was given my goodie, and walked out. I felt a little guilty, but I had followed Apple's method, and got a beautiful gold one. I assumed that Upgrade Plan customers got the same service. The line was out the door, around the corner, and nearly down to the next corner on the block. So many people lined up to get an iPhone? The last time I saw lines like that were for Jimmy Buffett tickets, and they always seemed to sellout in the first 5 to 8 people.
I did go back later because I couldn't get a backup of my existing iPhone (hotel wifi
). The lines were gone. A sales droid joked about the insanity of the zombies lined up hoping to get a new iPhone. I said I ordered online, and he laughed. 'That's what people are supposed to do, so why so many come to stand in lines waiting to be told that the 5 or 10 iPhones are gone is crazy.'
I have both. Apple upgrade program and currently on a Volvo 21XC90T6 subscription lease. Love both. If I can afford it why not? Enjoy what we can.
I've done IUP in previous years but I don't think it makes much sense to turn in your phone after 1 year. Not if Apple is setting high residual value for the phone. Apple is paying you more if you trade-in the phone so you would be better off just paying off the IUP balance and trade it in. Also with IUP, you are paying sales tax up front for the full value of the phone, but turning it in after 1 year you are not getting any paid tax back, vs if you do trade-in in store Apple will give you trade-in value + tax back. Not to mention you can cancel AppleCare+ and get $100 back. I think IUP only makes sense if you just want to spread payments across 24 months, and not willing to sign up the same payment plan with carrier.
Maybe I'm missing something but here's the calculation:
Let's run through an example with iPhone 12 Pro, $1000, purchased in 2020
Assuming sales tax 10%
Total device cost $1000 + $200 (Apple care+) + tax = 1320
IUP: $120 up-front for sales tax, plus 12 month device payment of $600
Total out of pocket: $720 paid after 1 year.
Instead of return phone back to Apple and start a new cycle again, we do trade-in:
Paid off remaining balance of $600.
Take phone to Apple store to Trade-in after 1 year = $640 (directly from Apple) + $64 (sales tax back) = $704 back + $100 (cancelled AppleCare+ refund) = $804 back
Make $804 - $600 = $204
As you can see you are overpaying $200 going with IUP and return device to Apple after one year. It makes even less sense if you are keeping the phone for 2 years. Apple sets iPhone 11 Pro residual value at $430 even after 2 years, which is incredible, but either way it doesn't pay to return phone back to Apple after just a year.
Maybe I'm missing something but here's the calculation:
Let's run through an example with iPhone 12 Pro, $1000, purchased in 2020
Assuming sales tax 10%
Total device cost $1000 + $200 (Apple care+) + tax = 1320
IUP: $120 up-front for sales tax, plus 12 month device payment of $600
Total out of pocket: $720 paid after 1 year.
Instead of return phone back to Apple and start a new cycle again, we do trade-in:
Paid off remaining balance of $600.
Take phone to Apple store to Trade-in after 1 year = $640 (directly from Apple) + $64 (sales tax back) = $704 back + $100 (cancelled AppleCare+ refund) = $804 back
Make $804 - $600 = $204
As you can see you are overpaying $200 going with IUP and return device to Apple after one year. It makes even less sense if you are keeping the phone for 2 years. Apple sets iPhone 11 Pro residual value at $430 even after 2 years, which is incredible, but either way it doesn't pay to return phone back to Apple after just a year.
I don't believe that the way to look at the value proposition is as "trade in and upgrade and is it worth it." You are paying a monthly subscription fee to use the newest model of iPhone. When you cancel the service, you just stop at the model you're at.
@pugxiwawa I thought a prorated refund was provided for Apple Care when you use IUP for a new model?
There’s no prorated refund because you have not paid for it yet, vs if you pay it off at $600 and you will get that $100 unused portion of AppleCare+ back.
I'm not arguing the merit of subscription service. I get it. It has many benefits. I'm strictly talking about returning the device back to Apple after paying 12 payments vs paying it off and trade-in. There's literally no benefits for just returning it to Apple.
Wait what is the benefit of paying off the balance and then trading it in? It doesnt seem to make sense to me
This seems like just wasting money to get some trade-in value (that is not guaranteed - Apple at their own discretion can reduce the trade-in value at anytime)
Using your scenario above, someone who continues in IUP in 2021 has just spent only $720 out of pocket as at the time of pre-ordering the iPhone 13 (ie after 1 year of owning the iPhone 12). He is planning to buy the iPhone 13 and will have a phone
The person who follows your path above has spent $1320 as the time of buying the iPhone 13. He trades in the phone and gets some money back but no phone.
You potentially get 800 bucks back (not guaranteed) but need to still add $520 to buy a new phone (assumption here is you still need a phone - that is not addressed in your scenario). So $1840 out of pocket (meanwhile the IUP guy pays 720*2=1440 over 2 years assume prices stay the same and he buys the same model)
Or as you stated, you may (again not guaranteed) make $204 but you are now without a phone.
I may be missing something here so let me know
Makes no difference to your credit rating. It’s a new loan so will always be a hard check.
They are 2 separate events. The person who trades in the phone can either again signup for new IUP or purchase iPhone 13 outright. This gives him/her a new choice, whether they want to lock in IUP again and required to pay for AppleCare+ or they can choose to buy iPhone 13 outright without, or go with payment plan from carrier.
I'm focusing on if you are already on IUP, there's simply no reason to just send back the phone and continue on the existing IUP plan. Your better off 1) pay off remaining $600 payment 2) trade-in and get $800+ back right now, and you can use that to sign up new IUP for iPhone 13 and pay for another year of IUP. Pocket $200 difference.
What do you mean not guaranteed? It's Apple trade-in value, they set the floor. You should use that as the MINIMUM what you can get for iPhone, and we know iPhone holds value extremely well.
I used the upgrade program for the first time for my 12max. Due to timing, I have made 11 of the 12 payments. Citizens One does not allow an early payment. Does anyone know how I can make the 12th payment in order to go ahead with the upgrade?
Other than my 3g, 4 and 5 purchased through AT&T I have bought 5 iPhones outright. I have also used AppleCare on the last 5 phones, with a new battery at the end of my 2 years and usually a new screen too before giving the phone to parents or family.
I've always had AppleCare and always will, because I get my value out of it without fail.
Now that I am buying 2 iPhones this year and because I decided to buy a much bigger house in a more expensive city during the pandemic(like an idiot... except 20% appreciation in 12 months has been nice), I am for the first time joining the IUP in order to not plunk down $3000+ dollars tomorrow.
I never sold a phone once even when I upgraded yearly so I never want to do the IUP and trade in the phone after a year, but it finally makes sense. With my parents now with an XS or higher phone, I think they are set for a while.
I've always had AppleCare and always will, because I get my value out of it without fail.
Now that I am buying 2 iPhones this year and because I decided to buy a much bigger house in a more expensive city during the pandemic(like an idiot... except 20% appreciation in 12 months has been nice), I am for the first time joining the IUP in order to not plunk down $3000+ dollars tomorrow.
I never sold a phone once even when I upgraded yearly so I never want to do the IUP and trade in the phone after a year, but it finally makes sense. With my parents now with an XS or higher phone, I think they are set for a while.
I've found that my parents love that I love shiny new gadgets!