M5 Studio base pre-ordered using Apple Upgrade lease

[4sallypat]

I wonder what the incentive is to Klarna in order to keep the lease running the entire duration.

That said if Apple Upgrade is administered through Klarna that would be reason enough for me to be extremely cautious about using it.

It makes sense for Klarna to offer a lease to carry to the end with no interest attached - as a constant stream of cash flow, while the liability of the device has been insured by Apple, and Apple is kicking back money to Klarna for the depreciation and/or interest monies....

 

[m1maverick]

It makes sense for Klarna to offer a lease to carry to the end with no interest attached - as a constant stream of cash flow, while the liability of the device has been insured by Apple, and Apple is kicking back money to Klarna for the depreciation and/or interest monies....

Can you expand upon this? I can't see a cash flow difference between the entire balance being paid early or the entire balance being paid over the agreed upon term. From a cash flow perspective receiving all the cash sooner rather than later seems to be preferable.

 

[enricoclaudio]

According to Gemini, Apple pays Klarna transaction and financing fees to handle the credit infrastructure, similar to standard buy-now, pay-later (BNPL) agreements.

 

[Happy_John]

Regular and predictable is good for business. A regular and predictable income for 24 months into the future per lease is preferable to a big bag of cash now and nothing more. You can plan far more effectively with predictable income.

Employees like a regular monthly salary.

 

[Cuesca]

EV’s that are designed to break? lol. With the 8 year warranty on an EV battery losing 5-10% a year would mean they replace most EV batteries. I’ve yet to meet anyone who has had an issue with their EV battery (i3s owner for 5 years with no noticeable change in range).
I know this thread is not about EV’s but let’s keep it real please.

The first run M3 had countless issues for me; however, they were kind enough to let me out of my lease 6 months early when the MY came out. If you ever followed the r/tesla subreddit you'd know that a lot of people had the same 5-10% a year degradation that I had. When I was ready to turn the car back to Tesla, the range was down by 20% in roughly 2.5 years. It had to be down 30% within the warranty period for Tesla to change the battery.

For all of my MYs(2021/2023) I was degrading at 1-2%/year. Which is my point: the depreciation of these cars is directly related to the battery, which costs $25k to replace means these cars are designed to break. And buying them outright to me, doesn't seem like a good idea financially.

"i3s owner for 5 years with no noticeable change in range."

Good for you, but in the real world, batteries degrade... Slower or faster, that really depends on countless factors.