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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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If you go this route, by paying off and signing up for IUP again, will this not cause a new hard pull on your credit? (Speaking from a US perspective.)
You can make an extra payment by phone, but not via the website. However, you don't need to do that, as you'll be prompted to just pay that extra payment along with the taxes when you pre-order the phone tomorrow morning. No sense making the payment manually now, it won't clear in time for tomorrow and you'll have to pay it again anyway, and wait for it to be refunded to you.
In the UK, that seems to be the case, but FYI in the US, it's only a hard pull the first year - subsequent years, as long as there's no lapse between loans, it's just a soft pull.
So to summarise, UK users are disadvantaged from the Hard credit check (which lowers your credit score) every year?
That can hurt financially in other ways vs getting a shiny iPhone with Apple Care...
Please correct me if i'm wrong as it's a no brainer otherwise if you 1) upgrade yearly 2) want Apple Care.
That can hurt financially in other ways vs getting a shiny iPhone with Apple Care...
Please correct me if i'm wrong as it's a no brainer otherwise if you 1) upgrade yearly 2) want Apple Care.
Again this makes no sense:
1. Why would you want to trade in the phone only to re-up IUP after just one year???
2. You cant trade in a phone to enter the IUP. Unless you use the regular Apple financing
Re-doing the math again for you in case you dont get it:
Based on your choice above, If you are currently on IUP and chose to pay off the remaining balance at the time of preorder, your out of pocket cost is $1320 (720 + 600).
Then you take the phone trade it in and pay an additional 520 out of pocket for the new iPhone (Apple credits you 800 for the old phone) bringing your total out of pocket costs (in one year) to 1840. Assuming you are not paying for AppleCare+.
Meanwhile your fellow Apple fan pays 1440 over 2 years! And has AppleCare+ to boot.
At the end of 2 years you both have an iPhone 13 that has been used for 1 year, you have paid $1840 out of pocket (720 for year 1 of IUP + 600 to buy out the IUP contract + 520 out of pocket to get the new iPhone which you own outright) while the other fellow paid $1440 (720 for year 1 of IUP + 720 for year 2 of IUP)
But choices am i right?
It's pretty much the same as if you buy with AppleCard payments. Look at it this way -- If you trade Apple back your 12 Pro Max 512gb you would receive $790 off the purchase of a 13 Pro Max (directly from Apple). Whereas if you purchased on iPhone Upgrade Program you would have paid half of $1599 and would have $792 that you don't have to pay. So it's pretty much the same either way.
Your math is off. You forgot that you still owe IUP $600 in year 3...
Let me break it down for you, again. Both examples include AppleCare+ and let's only run for 3 years.
Assuming you are doing IUP for 2 years, starting 2020 with iPhone 12 Pro, and this year you want to get iPhone 13 Pro and "re-up" IUP
2020 - $720
2021 - $720
2022 - $600
-----------------
$2040
Assuming you are doing IUP in 2020 for iPhone 12 Pro, and this year you pay off $600 and trade-in to get $800. Then you pay $1320 up front out of pocket (or re-up IUP again, doesn't matter)
2020 - $720
2021 - $600 + $1320 - $800 (trade-in)
2022 - $0
-----------------
$1840
Clear enough? Once you add back the $600 you still owe in year 3 that $200 difference suddenly shows up again. You can keep doing IUP every year and losing more and more money, or pay if off and trade-in every year.
"
1. Why would you want to trade in the phone only to re-up IUP after just one year???
2. You cant trade in a phone to enter the IUP. Unless you use the regular Apple financing
"
You know every year you return phone in IUP and get a new one you are starting a new IUP right? You don't trade-in phone to enter IUP. Again, these are 2 separate events. Not sure why people think IUP Is some special program that Apple creates for the benefits of consumer. It's just a 24-month 0% interest loan WITH Apple guaranteeing floor of depreciation value of the phone after 1 year. This is GREAT if we are talking about android phone that depreciates 50-70% after 1 year, but iPhone does not. Think of this way, Apple creates 2 paths for you on IUP. One where Apples pays you 50% after 1 year and gladly takes it back when you return, and the other one Apple pays you 640 (+100 refund from AppleCare+) if you pay off the $600 left owe on the phone. You are literally choosing the one that Apple pays you the lowest, and leaving money on the table.
Hope this is clear enough.
Can you clarify, if you close your IUP by paying it off, then trade in, and start a new IUP, does that incur a hard pull on your credit score? (I know the very first IUP causes a hard pull, but renewal does not)
Also, can you actually trade in a phone to join the IUP? I believe not.
Also, can you actually trade in a phone to join the IUP? I believe not.
Not 100% sure if it does hard pull or not for returning customer.
You trade in phone (fully paid off) to get cash back, nothing to do with IUP.
OK, but the only way you can trade in is if you buy the phone outright. You can't join IUP with the trade in. Unless you sell for cash privately or on Swappa/Ebay.
I'm pretty sure that if you start a brand new IUP after closing out, you'll get hit with a hard credit score pull.
I'm on the IUP now - for full transparency!
Yup you’re definitely right. I’ve been on iUP since iPhone 7 and at this point I’m considering leaving especially after this years extra charge. Not to mention having to pay tax on the FULL price of the phone every time (instead of on half of the phone which is the whole purpose of iUP to upgrade after 12 payments or even dividing up tax up month to month). Verizon and ATT also tack on upgrade fees every year which you can avoid on the regular Apple payment program by just swapping sims.
The issue is we don’t know what the Apple store trade in value will be every year, it’s been great for the 12 and 13 but there’s no guarantee it will continue in the following years. I’m very conflicted especially with the really good carrier deals going on as well but those require 24/30 month commitment. As someone who does a lot of photograph I like upgrading every year only time I regretted upgrading a year was X->XS. Not sure what to do now as continuing on iUP feels like wasting money (also never had to use apple care though enjoy not worrying about a case) however betting on next years resell value feels risky too ?
Yes this is clear and I understand your points clearly.
Yes I am aware that each year you restart the IUP and this is isnt some program that the beneficent Apple created for us mere mortals.
I agree with your numbers but in the long run it boils down to convenience. Am i willing to trade 200 (15% of the sale price) for the convenience of IUP? I also agree that the iPhone resale value holds up well but is it worth it to go through the "stress" of a resale or vagaries of a trade in (the trade in is way ore subjective as it can change from year to year and is subjective - terms say "up to 790", can be dinged for minor blemishes)
I have done the whole "pay in full, resell before launch and then buy the new iPhone" cycle. Rinse and repeat. It just wasnt worth it to me compared to what iUP offers me as I upgrade every year. This works for me and I hope others figire out what works for them as well
Good luck!
Also consider that with the IUP you only pay for the AppleCare you actually use. If you buy outright and add AppleCare you're paying for 24 months of coverage even if you sell the phone after 12 months
Sure you can start as many IUP as you want. Again it’s just $1000 loan to you with 0% interest. It’s separate from trade-in and nothing to do with each other. I’m not sure why you are mixing IUP with trade-in. Also this trade-in we are not talking about private sale. The trade-in here is literally going to Apple store and hand them your fully paid off iPhone and Apple hands you cash.
Yeah the unused portion. You can call Apple to cancel AppleCare+ and they will refund you.
Well not cash but a gift card which can’t be used towards the other iUP as it requires a CC
I've been in IUP every single year starting the very first year it was available. Year one was a hard pull, and they've never done a hard pull since.
Second question - no, you cannot trade in a phone to start IUP.
What do you mean? Every time a hard check is done, the score gets impacted.
It’s only hard check in the U.K. if you check what others are saying from the USA, they don’t have the hard check. I get it’s a new loan but if someone’s on the program for a few years and they’re upgrading then hard check is probably not required but then I take it this is more of a requirement from Barclays than Apple as Barclays is the ultimate loan provider.
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Funny enough after all the trouble with ordering on Apple card this morning I decided to just cancel iUP and pay the rest off. Instead I’m doing regular monthly payments for the 13 which will also avoid carrier upgrade charge. Now just to decide if I trade in my 12 to apple the easy way ($640) or use swappa ($700-$840) hmmmm ?
Mostly a good program. I'm in the minority but I didn't like that last year we owed extra payments on our iPhone because apple launched late- then this year we owed an extra payment because we launched early.
Fairly ****** to pay apple two extra payments because of covid when they are doing fine.
Fairly ****** to pay apple two extra payments because of covid when they are doing fine.