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Apple program: Lease-to-own an iPhone 6S?

Discussion in 'Off Topic' started by anticitizen13.7, Sep 23, 2015.

  1. anticitizen13.7

    anticitizen13.7 Enemy of the Status Quo

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    Anyone considering this for an iPhone 6S? Because the 2-year carrier contracts are quickly disappearing in the U.S. market, Apple is offering direct monthly payments as an option for buying:

    http://www.apple.com/shop/iphone/iphone-upgrade-program


    • Customer gets a new iPhone 6S/6S+ and AppleCare+ (2-year warranty and 2 coverages accidental damage insurance w' $100 deductible for each incident)
    • The upfront cost of the iPhone and AppleCare+ is divided into 24 equal monthly payments, charged automatically to credit card.
    • After 12 payments, the customer has the option of trading in the iPhone to Apple. The iPhone must be operable and physically intact. Apple will pay off the remaining 12 payments and roll the customer over to a new iPhone, which starts the 24 monthly payments clock again.
    • The iPhone is always unlocked and U.S. carrier universal (compatible w' GSM and CDMA networks)

    I see the following advantages:
    1. This is effectively a 0% interest loan.
    2. The customer can switch carriers at will.
    3. No-hassle for resale or trade in. People now sell phones on eBay and Craigslist to recoup their initial outlay, which can be a real pain. Selling to Gazelle and similar companies means taking a big hit. Apple takes away this pain and basically guarantees a resale price (sort of like Tesla w' the Model S lease). If the phone ends up sucking, you can dump it for the next-generation device when it comes out the next year.

    There are some downsides:
    1. Carrier financing can be less expensive.
    2. The insurance does not cover theft.

    I bought my iPhone 5 a few years ago. Paid full cost for an unlocked one, which was a lot of $ upfront.

    I'm debating whether to (1) try this new Apple program with an iPhone 6S, or (2) be a cheapskate and pick up a now "bottom of the barrel" but still quite capable 5S at full retail ($450). I really just want a fingerprint reader. However, I really do like the nice screens on the iPhone 6.
     
  2. Nosken

    Nosken Member

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    When comparing the other "lease" plans it is important, as you mentioned, that AppleCare is included.

    T-Mobile has been very aggressive about the rates on these phones also. The coverage is getting better, but it is an issue.

    Mobile carrier leaseshttp://dealnews.com/features/Rundown-of-Every-Carriers-Lease-Upgrade-Plans/

    AppleCare does not cover lost or theft. On a side note, if you pay your cell phone bill with a Wells Fargo credit card, not a debit card, you get up to $600 of coverage, with a $25 deductible, with two losses a year. You just pay your cell phone bill with this, and you're automatically covered. It covers breakage, and theft, but not loss. You can connect the dots on that last part.
     
  3. SR22pilot

    SR22pilot Member

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    While the Apple plan includes AppleCare+, it isn't free. I thought it was until I multiplied the payments by 24. It is included in the price. I do think the plan is better than the one from ATT if you are going to get AppleCare anyway. The Apple plan is the equivalent of giving you half the price of your phone as a trade-in at the 12 month mark along with an interest free 24 month loan. Keep the phone for 24 months and you own it.
     
  4. hockeythug

    hockeythug Active Member

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    #4 hockeythug, Sep 24, 2015
    Last edited: Sep 24, 2015
    I am going to do it. I like AT&T's coverage in my area but I recently have had very bad customer service and want to deal with them as less as possible. I most likely will still have to call and get whatever absurd "activation" fee they will try to charge me waived though.
     
  5. SR22pilot

    SR22pilot Member

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    If you have an iPhone now and if the SIM card is the same size, just move the SIM card. Don't tell AT&T anything.
     
  6. rickgt

    rickgt Enthusiast owner/member

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    Exactly!! What I'm going to do
     
  7. jbcarioca

    jbcarioca Active Member

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    I have decided to do it when i pick up my new iPhone tomorrow morning. I have different carriers for the US, Brazil and France anyway so I need an unlocked phone. I claim I will not instantly upgrade but always end out doing it. Reality tells me this reduces my cost by about 50% because i'll stop giving my old phones to family members. We'll see if I ending out buying other for them anyway. If that happens my costs will increase. I am betting on my own self-restraint.

    After all I have not yet bought a Tesla for any of them!
     
  8. hockeythug

    hockeythug Active Member

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    Apple isn't just going to hand over the phone. They are requiring you provide your carrier information.
     
  9. CHG-ON

    CHG-ON Still in love after all these miles

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    Just saw a review on Cnet on the plans from Apple and different carriers. Apple looks to be the most expensive, by far. I think this new model needs some time. Glad I have a year left on my phone for it all to shake out. I like the concept a lot.

    - - - Updated - - -

    Make them pony up their own hard earned sawbucks!:smile:

    "After all I have not yet bought a Tesla for any of them!"
     
  10. SR22pilot

    SR22pilot Member

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    Link for CNETarticle? I find it hard to imagine ATT is better than the Apple plan. With ATT you finance for 24 months but can't upgrade till 18 months.
     
  11. anticitizen13.7

    anticitizen13.7 Enemy of the Status Quo

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    I haven't read anything on CNET, but Ars Technica has a breakdown of what each of the carriers are charging monthly. Note that the Apple plan includes AppleCare+ (Full retail price of $129 for extended warranty + insurance). This is why the Apple plan costs a bit more than the carrier installment plans.

    http://arstechnica.com/apple/2015/09/apples-iphone-upgrade-program-vs-the-big-four-carriers-payment-plans/

    Some other random thoughts:

    Applying for the Apple financing plan does require a credit check. If you don't want to give your SSN to yet another company, and have another credit check appear on your credit report, it might be worthwhile to just buy the phone outright when it becomes SIM free available.
     
  12. CHGolferJim

    CHGolferJim Member

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  13. electracity

    electracity Active Member

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    Consumer Cellular uses the ATT network and has excellent customer service. They are also often less expensive for users not on family plans.
     
  14. bollar

    bollar Disgruntled Member

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    I typically buy SIM-unlocked, unsubsidized phones from Apple and they don't ask for carrier information at all. Perhaps the lease is a different deal.
     
  15. hockeythug

    hockeythug Active Member

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    Anyways, apparently the bank Apple is using, Citizens, is having major system issues that is resulting in declining people who otherwise should have most likely been approved.
     
  16. electracity

    electracity Active Member

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    If you want a 6s GSM phone from Apple direct, it is necessary to order a T-mobile phone from their store. Apple will then send an unlocked 6s with no need to buy a T-mobile contract.

    There are only two 6s models, AFAIK. The CDMA version and the common GSM phone for ATT and most of the rest of the world.
     
  17. anticitizen13.7

    anticitizen13.7 Enemy of the Status Quo

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    Huge thread about ongoing problems here: http://forums.macrumors.com/threads/iphone-upgrade-program-experience-thread.1920823/

    People with credit scores between 700 and 800 are being routinely denied, while people with credit in the 600's are walking out the store with new iPhone 6S. There seems to be a lot of confusion with Apple Store employees and wireless carrier representatives. Many people are just saying "screw it" and either paying full price for their device or walking out empty handed. Other people unhappily note that Citizens One is doing hard pulls on their credit scores.

    All in all, the program is accomplishing little today except making good customers angry, but I'm not surprised this is happening on Day 1 of version 1.0.
     
  18. hockeythug

    hockeythug Active Member

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    Yeah, I have been following that. Seems like you will have to do a hard credit pull every year as your current loan is paid off and closed and you have to start a new one.
     
  19. burkevalocks

    burkevalocks Member

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    Great link.... found out everything I needed to know regarding iphone 6s. I think it is cool how they do this now though. But i dont see the point of leasing the phone when you just pay a couple more bucks a month and get the keep the phone because then when the 7 comes out you can sell the 6s.
     
  20. CHG-ON

    CHG-ON Still in love after all these miles

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    Here's the link: Is the Apple iPhone upgrade program right for you? - YouTube. I got it downloaded into iTunes. But I have them as a YouTube subscription also and ended up finding it there.

    I hope it works. ATT and VZW don't have lease programs yet. So it's awfully hard to compare the plans. Also, the other carriers, Sprint and T-Mobile, don't necessarily have the coverage that some need. I need VZW where I am. So I think it will take some time to figure this out. The nice thing about Apple is that you get Applecare baked in, essentially forever, if you go with them. I have found that to be super useful for my multitude of Apple devices. Once you have it on one, they will give free support on all, even if way beyond the 3 years. Pretty cool.
     

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