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Other Upgrade Program or Purchase Outright
- Thread starter MikeM87
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I can’t say I agree with your logic. Mainly because a large amount of consumers _do_ finance their phones today because it’s interest-free and the payments are usually very manageable/affordable, but the important thing is, to make sure the payments are made *on time*-and that the consumer can *afford* the payments. If Someone can’t afford smart phone payments, then they shouldn’t be financing it, period.
I think so, but better to be sure about that now, rather than while trying to get in to buy a new phone in a couple of weeks.
I’ve seen a lot of people talking about how paying upfront makes no sense when the loan from Apple is interest free. This is technically true, but let’s be honest. How many people will really take the extra money and invest it into something else? I have a friend who owns a cellphone shop. He said the vast majority of people who do a 24 month payoff plan do so because they cannot afford the phone if they had to pay up front. This isn’t a slam on anyone. I’m far from rich, but I’m also one of those people who loathes having any debt over my head. I’d rather pay up front than benefit from a few extra bucks in my 401k or inflation factored in. Seeing $50 taken out per month would annoy me.
I also think payment plans are one of the major reasons for the obscene prices on phones now days. A 512gb note 9 is $1250. That’s $13XX after tax. Making a down payment and then 24 payments at $50 a month or whatever is easy to stomach, but a lot of people wouldn’t go cash in hand for it.
I also think payment plans are one of the major reasons for the obscene prices on phones now days. A 512gb note 9 is $1250. That’s $13XX after tax. Making a down payment and then 24 payments at $50 a month or whatever is easy to stomach, but a lot of people wouldn’t go cash in hand for it.
I work with loads of people in their late 20's and 30's who finance cars, phones and electrical items. They all rent or live with parents and moan they have no money and will never be able to buy a house.
I just sit and think more fool them!
I can afford to pay for the phone up front no problem but I do upgrade every year and am sick of having to meet someone to try and sell the phone for cash. With the Apple upgrade program it works out about the same as the residual value of the phone after 1 year is about what I can get for it on craigslist. I don't have to worry about scratches, boxes, condition of the phone etc. As long as it s not broken or cracked Apple takes it back.
As I said, consumers need to make the differentiation on what they can afford and what they can’t, in terms of financing a phone, many can afford to pay for a smart phone, just because it’s an easier route because of carrier incentives, trade-in programs ect, but just because someone finances a phone doesn’t necessarily mean that they ‘live with their parents’ or moan about not having money, it just takes somebody that has understanding of their financial situation and what works best for them.
Also, keep in mind the reason others might finance their phones because they *don’t* have the intention of wanting to own it, they rather trade in they have the newest device later on, which trade-in programs make that more transitional.
I've sold my last two phones to people I know. One of whom has already asked if I'm selling soon as my phones are as good as new when I sell them on.
That works. Most of my friends upgrade too so we all have phones we have to dump.
I'm not saying everyone on the trade up program is poor or lives with parents! Just that the people who I work with that moan about having no option to buy a house never seem to appreciate a new phone every year or two is a want not a need!
Anything won't replace common sense. But just because many people lacks common sense, it doesn't negate the value of a program.
As for obscene prices of phones, that's just one's perspective. Take the iPhone X. Sure, it's $1k, but is Apple only selling the X? No. The regular flagship iPhone 8 is $699. Sure, a 512GB Note 9 is $1250, but do you actually need 512GB? I cannot blame companies to push their premium price to those who need it, but if you are a normal person, common sense still applies, to simply buy what you need. Of course that warrants another thread, but I hope you get what I mean.
I always purchase my iPhone's outright no way I'm paying £80 - £90 a month for two years too much money.
I won’t ever consider iUP as long as AppleCare has to be included. AppleCare is expensive insurance with high deductibles (relative to the cost of what you’re insuring). You can finance through the carriers, and upgrade after 12 months worth of payments (at 0%), but you don’t have to buy AppleCare. So, for me, it’s either finance through my carrier or pay for the full cost up front.
Get to know people with kids. They are always in the market for slightly older phones to replace the one their kid left on the bus/dropped in a puddle!
Yup, not that I can't afford it, but I got my 8+ on Black Friday and got a $300 gift card when I purchased the phone. Probably do the same again this year. I just look around and see who has the best incentives. I don't mind waiting the extra couple months, gives me a chance to see if the new phones and the latest IOS version have any bugs that need to be worked out.
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Apple's plan isn't bad if you plan to keep the phone longer than 12 months. I've had phones fail after the factory warranty expired and the insurance was worth it.
Normally I lose about 200 per year. So it’s costing over double the price to give it back hassle free.
You will need to make the 12th payment early if you upgrade before anniversary date.
As I have gotten older and wiser I have found being debt free trumps everything else. It takes risk out of the equation. I always buy my phones outright. If I couldn’t afford to do that, I shouldn’t be buying the phone.
Excellent points here!! How much money do you think Apple adds to their bottom line when forcing everyone to buy AppleCare with this program?
The reason not to is it gets you on a perpetual upgrade treadmill. That's the exact reason apple came up with the scheme. People using the IUP give more money to apple in the end than those who just buy a phone outright and probably skip years or occasionally buy used.
True, with AppleCare but the bank needs the extra protection. Just like leasing a car or owning a home.
Bottom line one solution will not work for everyone. Each person needs to decide what will work best in his/her own situation. We are adults and it's a fair assumption that we are responsible enough to make the right choice. At the end of the day it's just a smartphone; it's not like someone is buying a house.
Sorry your wrong it just takes the price of the phone and divides it by 24 months. it costs the same either way, you pay no interest and not pay extra. So once 24 months are up you own the phone.
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Why pay for a phone 100% out of pocket, when you can finance it at Zero %. You could invest that money and grow it while making the payments. Its how you buy a phone these days, plus I can walk into my carrier store and get it on device payments and just pay taxes and the upgrade fee and the monthly payments get charged to my cellphone bill which I pay off every month via auto-pay, So I see no difference.
Please copy and paste this comment repeatedly in this thread.
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Correct. The AC requirement is a contractual requirement between Apple Inc. and Citizens Bank.