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Other Why upgrading every year isn't as dumb as you think
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Well last year I would agree as I only bought one iphone - iphone 11 pro max. But this year with 5g, the camera, the design etc now my family wants one so that means daddy has to buy all 5 with a potential sixth (iphone 12)
Meanwhile I buy the older version of phones at a firesale price (ie for less tha the price you upgrade significantly), use for a few years and repeat with an upgraded older version.Every year, I pay the whole cost upfront for the biggest, fanciest iPhone unlocked directly from Apple. This year, I will be selling my iPhone 11 Pro Max (256 GB) on eBay and buying the same size 12 Pro Max. I should get about $900-$950 for it as it is in mint condition. Accounting for eBay fees, PayPal fees, and the taxes I'll pay on the new 256 GB Pro Max, it will essentially cost less than $500 for me to upgrade.
Older iPhones obviously lose value each time a newer model is released, so I am paying only a tiny bit more than if I upgraded every 2 years or every 3 years and did the same thing. I would start saving serious money only if I kept my current phone for at least 4 years, and as a tech enthusiast I just can't bring myself to do that -- especially considering that this is a device I use for multiple hours every day.
In other words, upgrading your iPhone every year is actually not stupid or particularly expensive assuming you pay upfront, keep it in good condition, and sell the old one on eBay. Using this method, I am paying only a fraction of what those on Apple's yearly upgrade program pay. I understand that not everyone is in the financial position to do this, but if you are and are a tech enthusiast like me, I think this is the best way to do it.
staying a few gens behind is much cheaper....
Well, it serves convenience.
I put mine on FB marketplace and got $50 over the Trade-In value.
There were so many people messaging me to ask if it was "still available?" But only 2 people even counter offered.
It is a hassle to reply to the messages, negotiate, and meet up with the potential buyers.
I was hoping for $100 over the Trade-In because I thought that would worth my trouble.
$50... is barely worth my time.
I wish I could hang on to every phone I had. Would make one heck of a collection by now!
While I’m at work I have 2 side jobs; mturk and prolific. If I maybe do 2 hours of work on them per day I can make an extra 300-1100 usd that month. Even if I only do prolific I can net 100-350 which Ill save for the new phone. I’m blessed (and cursed) my job is so straightforward that I don’t have to use my brain much and just slack off and do other stuff.
I do Craigslist every year and I get top dollar with no fees and cash! Say I buy the max for $1200. Well the battery health is down to 94-90% and I get about $900-$800. So I payed $3-$400 for a rental versus paying half $600 for a rental and i get a 100% battery health every year! Every dollar and battery percentage counts in the upgrade game!
In my experience, the best resale return on investment (if that's what you want to call, depreciation) is for the bottom tier memory. So yes the MAX, but not 512 or 256GB. The extra memory takes a cut as well. Then taking the return and rolling it into the next year's iPhone, will reduce your out of pocket expenses even more.
Frankly, hold on to the phone for 5 years and turn it in.
Frankly, hold on to the phone for 5 years and turn it in.
I just started saving every month until the next iPhone is released. It helps that I save the money every month in my T-Mobile Money Account and gain 4% in interest every month.
Everybody’s priorities are different and everybody’s financial state is different.
I know some people who are older and sitting in C-suite jobs that use old iPhone 8’s because they have other priorities e.g. some are more into car modifications which cost far more than a new iPhone, some are into building gaming PCs and simply see a phone as a grudge purchase that they have to upgrade every 2-3 years, heck a good mate of mine is a lawyer for a huge firm and that dude used an old Samsung Galaxy Note3 to the point where it was falling apart yet him and his wife regularly do luxurious overseas trips, he was so happy with his Note 3 but had to eventually let it go and upgrade to something newer, he did so begrudgingly.
I’m personally in the market for a new house, looking to take advantage of lower interest rates, so I’m putting a lot of my disposable income into savings so I can put down a large deposit and pay off the house quicker.
Some people spend more on their iPhones than anything else in their lives, some people will have the latest iPhone but live in a commune and not really own anything at the same time there are people who will walk into an Apple Store buy a iPhone Pro Max, buy an iPad Pro, buy the top spec Apple Mac Pro for $52000 plus $4999 Pro Display XDR and pay cash for everything and not bat an eyelid or feel it in their bank account.
Also given the pandemic is now getting worse with the second wave, don’t be surprised if some of the people who upgrade yearly around here begin to go quiet or completely disappear, it’s going to be a terrible late 2020 and 2021 for many. I’ve already noticed some folks have gone quiet or are not as active as they used to be.
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Oh god selling on eBay or swappa. Give me chills given I love close to 2k on a sale before. Well OP your lucky so far.
I’m in the same boat, except I don’t pay taxes and work pays for part of the phone (but the iPhone is mine).
It works out that I sell the phone for the original, discounted purchase price a year later, and pay for a new phone at a reduced price. Rinse and repeat, I never pay for an upgrade.
If I were to move to a 2 or 3 year upgrade cycle, it would cost me money to upgrade (as the value of the phone would be less after 2 years, but would pay slightly more for a new phone).
It works out that I sell the phone for the original, discounted purchase price a year later, and pay for a new phone at a reduced price. Rinse and repeat, I never pay for an upgrade.
If I were to move to a 2 or 3 year upgrade cycle, it would cost me money to upgrade (as the value of the phone would be less after 2 years, but would pay slightly more for a new phone).
If you are satisfied with that approach, that's all that matters.Every year, I pay the whole cost upfront for the biggest, fanciest iPhone unlocked directly from Apple. This year, I will be selling my iPhone 11 Pro Max (256 GB) on eBay and buying the same size 12 Pro Max. I should get about $900-$950 for it as it is in mint condition. Accounting for eBay fees, PayPal fees, and the taxes I'll pay on the new 256 GB Pro Max, it will essentially cost less than $500 for me to upgrade.
Older iPhones obviously lose value each time a newer model is released, so I am paying only a tiny bit more than if I upgraded every 2 years or every 3 years and did the same thing. I would start saving serious money only if I kept my current phone for at least 4 years, and as a tech enthusiast I just can't bring myself to do that -- especially considering that this is a device I use for multiple hours every day.
In other words, upgrading your iPhone every year is actually not stupid or particularly expensive assuming you pay upfront, keep it in good condition, and sell the old one on eBay. Using this method, I am paying only a fraction of what those on Apple's yearly upgrade program pay. I understand that not everyone is in the financial position to do this, but if you are and are a tech enthusiast like me, I think this is the best way to do it.
There are other considerations though... Do you buy AppleCare+? Do you spend extra for screen protectors and cases so that it remains in mint condition? How much anxiety do you have if the phone gets a little nick or scratch? How much value do you place on your time when it is time to post a listing on eBay, receive payment from the buyer, pack and ship the device, and deal with potential problematic buyers?
All that for the "privilege" of spending $500 a year. But like I said, if it works for you, great.
There's actually no need to upgrade to the latest and greatest every year nowadays. My iPhone 7 still functions perfectly. And when it passes away, I'll get an 8.
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I've been doing this for years now, and don't even have to go through the hassle of selling the old one to dodgy eBay or craigslist peoples. We have a store over here in Europe called CEX who usually always pays top prices for phones. So usually on the Saturday after launch day, once the new phone has arrived, I box up the old one and make my way to CEX. They take 20 minutes to inspect the phone and then either give me cash or transfer to my bank account. I usually end up paying €250-€300 per year for a new phone in the end, which to me is worth it.
This year is a little different as CEX where hit bad with COVID and their prices are not as good as usual, only giving €520 whereas last year I sold the Xs Max for €750. Surprisingly Apple's trade-in still offers €650 for my 256gb 11 Pro Max and I know that I could get a lot more if I sold privately.
This year is a little different as CEX where hit bad with COVID and their prices are not as good as usual, only giving €520 whereas last year I sold the Xs Max for €750. Surprisingly Apple's trade-in still offers €650 for my 256gb 11 Pro Max and I know that I could get a lot more if I sold privately.
$500 to upgrade every year?
I just traded in an iPhone 7 for $500, so it costs me $500 to upgrade every 4 years. I don't see much value in paying $1500 more to have the latest and greatest every year. Especially with the incremental updates these phones have year to year.
I just traded in an iPhone 7 for $500, so it costs me $500 to upgrade every 4 years. I don't see much value in paying $1500 more to have the latest and greatest every year. Especially with the incremental updates these phones have year to year.
$500 to upgrade every year is roughly $42/month. Add in AppleCare+, and you're basically at the cost of Apple's Upgrade Program, which is far less work. Doesn't seem like you're actually saving any money, esp if you don't assign a $ value to your own time.
I don't think so. The regular payment plans for 24 months or 30 months are MUCH lower than the $42/month you're paying. I think you're paying roughly 2x more for hardware every year to upgrade that often.
My guess is that the OP's time is worth 0 monetary currency per hour. I give the first post a solid 10/10 for financial management
lol...
In fairness to OP, they say in their first post that $500 is a tiny amount so it's all relative to specific people. Paying a "tiny" amount every year to upgrade to the latest and greatest is not a waste to them.
I don't agree with their rationales but as soon as they said $500 is a tiny amount (to spend every year), the rest didn't need to make sense.
If it really was a tiny amount, then they would not bother wasting their time with trying to peddle their second hand devices on eBay and such and have to mix with the general proletarian peasant mob as a result.
My aunt uses similar logic (albeit on a different scale) when she trades cars. It’s only going to cost $X to upgrade from the 2019 to the 2020. It ignores that you take the biggest depreciation hit the moment the product goes from new to used, and you’re signing up to do that every year. So I’ll say the same thing I say to her, don’t lie to yourself. It doesn’t make financial sense, so don’t try to force it to. As long as you can afford it, do whatever you want. you don’t owe anybody any justification for it.
You literally made anyone that doesn't agree with you, DUMBS! 😂Every year, I pay the whole cost upfront for the biggest, fanciest iPhone unlocked directly from Apple. This year, I will be selling my iPhone 11 Pro Max (256 GB) on eBay and buying the same size 12 Pro Max. I should get about $900-$950 for it as it is in mint condition. Accounting for eBay fees, PayPal fees, and the taxes I'll pay on the new 256 GB Pro Max, it will essentially cost less than $500 for me to upgrade.
Older iPhones obviously lose value each time a newer model is released, so I am paying only a tiny bit more than if I upgraded every 2 years or every 3 years and did the same thing. I would start saving serious money only if I kept my current phone for at least 4 years, and as a tech enthusiast I just can't bring myself to do that -- especially considering that this is a device I use for multiple hours every day.
In other words, upgrading your iPhone every year is actually not stupid or particularly expensive assuming you pay upfront, keep it in good condition, and sell the old one on eBay. Using this method, I am paying only a fraction of what those on Apple's yearly upgrade program pay. I understand that not everyone is in the financial position to do this, but if you are and are a tech enthusiast like me, I think this is the best way to do it.