Apple Upgrade Program

[substring]

I am planning to pre-order the new iPhone Xs Plus this month when pre-ordering starts. And I also want to enroll into the Apple Upgrade Program, which is basically a leasing program. Currently I am not on this program, does anyone know if I can enroll to this program now before the pre-order or I have to wait to enroll during the pre-order?

Any help will be very much appreciated.

 

[Rob Phillips]

You should be able to get preapproved through iPhone Upgrade Program sometime between the announcement and the start of the preorder. That’s how it worked last year anyway.

 

[substring]

Thanks Rob. Is the pre-approval done online or at Apple Store?

 

[Rob Phillips]

Thanks Rob. Is the pre-approval done online or at Apple Store?

Online. I did it through the Apple Store app.

 

[DarkKnight08]

You should be able to get preapproved through iPhone Upgrade Program sometime between the announcement and the start of the preorder. That’s how it worked last year anyway.

If I remember correctly from last year, those who were already in the program got priority over those who just joined. There was a period open to basically pre-select your phone for those in the program. It was a simple one step order process from there.

 

[BillyBreathes]

Question. Is this program only available to people in the US? I’ve heard of this program but can’t come across it on the Canadian Apple website.

 

[Chief G-Hawk]

If I remember correctly from last year, those who were already in the program got priority over those who just joined. There was a period open to basically pre-select your phone for those in the program. It was a simple one step order process from there.

This is correct, the pre-approval process was for customers who were currently enrolled in iUP previously. But who knows, Apple could change it up this year.

 

[substring]

Since I have Apple Care +, I contacted Apple Support. They told me that I have to wait till the Pre-Order process to sign up for the Upgrade Program. Also, they told me the Upgrade Program is to pay to my carrier and not to Apple. Is that correct? I talked to my carrier Verizon Wireless on 9/1. They told me the Upgrade Program is between me and Apple, and it has nothing to do with Verizon. This thing is getting more and more confusing. Verizon tells me one thing, but Apple Support tells me different thing. Can anyone clarify this mystery?

Thanks in advance.

 

[mattguy10]

Since I have Apple Care +, I contacted Apple Support. They told me that I have to wait till the Pre-Order process to sign up for the Upgrade Program. Also, they told me the Upgrade Program is to pay to my carrier and not to Apple. Is that correct? I talked to my carrier Verizon Wireless on 9/1. They told me the Upgrade Program is between me and Apple, and it has nothing to do with Verizon. This thing is getting more and more confusing. Verizon tells me one thing, but Apple Support tells me different thing. Can anyone clarify this mystery?

Thanks in advance.

When you enroll in the iPhone Upgrade Program, you open a loan with Citizens One. So although you’re ordering the phone through Apple, monthly you make the payment to Citizens One because they’re holding the loan. You can pay this 24 month loan off at which point you’d own the phone and the loan is closed out, or you can upgrade/start another loan on a new phone as early as six months after the original loan has started, but you must make the equivalent of 12 payments first. So unless you want to throw six months of payments away, the earliest you should upgrade is at the 12 month mark, but that is totally up to you. When pre-ordering the phone you need to select a carrier, however you are not paying the carrier anything for the phone itself, but Apple doesn’t usually offer unlocked versions of their new devices for some time after there initial release which is why selecting a carrier is required at the time of pre-order. So at pre-order if you want to stay with Verizon, Verizon is the carrier you’d select.

 

[substring]

Thanks @mattguy10 for the reply. But that brings up more puzzle. Is the 12 months payment basically the total cost of the device divided by 12? Or it is at a lower monthly payment since you are literally leasing the phone? If it is the former, then there is really no advantage to sign up this program. I have been paying the total cost of each of the iPhones that I owned before and then purchased the Apple Care +. So if there is no saving using the Upgrade Program, there is no reason for me to sign up, right? Or did I misunderstand the program?

 

[boogas8]

Thanks @mattguy10 for the reply. But that brings up more puzzle. Is the 12 months payment basically the total cost of the device divided by 12? Or it is at a lower monthly payment since you are literally leasing the phone? If it is the former, then there is really no advantage to sign up this program. I have been paying the total cost of each of the iPhones that I owned before and then purchased the Apple Care +. So if there is no saving using the Upgrade Program, there is no reason for me to sign up, right? Or did I misunderstand the program?

The total cost of the phone and AppleCare (excluding taxes) is divided by 24 months and they is what you pay monthly. After 12 monthly payments (50% of the cost) you can then upgrade. The cost of the device is not discounted. The possible savings (or loss) would come from the difference in what you owe at the time you upgrade vs the amount of money you would receive to sell the phone on your own.

So the advantage would be if you have the upgrade program, when you can decide to upgrade you can choose to upgrade through the program or pay it off and sell it on your own. All you’re really doing is spreading out time it takes to payoff the phone, so not much of a difference just the timing of payments. Unless you want to be technical and look at time value of money.

 

[mattguy10]

Thanks @mattguy10 for the reply. But that brings up more puzzle. Is the 12 months payment basically the total cost of the device divided by 12? Or it is at a lower monthly payment since you are literally leasing the phone? If it is the former, then there is really no advantage to sign up this program. I have been paying the total cost of each of the iPhones that I owned before and then purchased the Apple Care +. So if there is no saving using the Upgrade Program, there is no reason for me to sign up, right? Or did I misunderstand the program?

The loan is a 24 month loan which includes the retail price of the phone and AppleCare. AppleCare is required with the Upgrade Program. After 24 payments are made, you will have paid the total cost of the phone as well as the cost of AppleCare for two years. The whole point of the Upgrade Program is to pay off the phone in monthly installments if you or someone doesn’t want to pay full retail up front. Some people, who upgrade every year, just like the convenience of turning their current phone in for a new one instead of going through the trouble of selling it and then upgrading. Bottom line is, no it does not save you money in the long run, it’s just a way not to have to pay full retail up front. Keep in mind that once the phone you pre-order ships, you will be charged tax on full retail as well as the first monthly payment. These will show up on your credit/bank statement as two separate charges. AppleCare is not taxed. So even if you only keep the phone for 12 months, you pay tax on all 24 months, which like I said above will end up being the total cost of the phone. You’re actually losing money by not keeping the phone for the full 24 months due to having to pay that tax, but depending on what phone you go with is usually less than $50.

 

[substring]

Thanks for the detailed explanation @mattguy10! I guess I totally misunderstood this Upgrade Program. I was under the impression that this is a leasing program, just like you lease a car where the total payment is less than buying, because at the end of the lease, you give them back the asset in exchange for a new one. If the total cost is no different from me buying the phone out right and buy the Apple Care+ afterword, there is no reason for me to sign up then. I have always been paying the total retail cost upfront, and I don't have any problem with that. It is easier and simpler that way.

Well, thank you very much for all the help!

 

[mogelijk]

Thanks for the detailed explanation @mattguy10! I guess I totally misunderstood this Upgrade Program. I was under the impression that this is a leasing program, just like you lease a car where the total payment is less than buying, because at the end of the lease, you give them back the asset in exchange for a new one. If the total cost is no different from me buying the phone out right and buy the Apple Care+ afterword, there is no reason for me to sign up then. I have always been paying the total retail cost upfront, and I don't have any problem with that. It is easier and simpler that way.

Well, thank you very much for all the help!

If you get a phone every 12 months, it is a "lease program" -- more or less. You pay half the cost of the phone (and half the cost of AppleCare) and you can then turn in the phone and get a new one. The difference is how it handles things if you decide you don't want to turn it in. In the case of the car, there is a balance due on the car -- and you can then pay the car off in cash, or get a loan to pay off the remainder. In the case of the phone, you merely continue to make the payments and, once the payments are completed, you own the phone.

There are advantages and disadvantages to the Apple Program, but the way it is set up gives you more flexibility -- say if you want to turn in the phone early or you want to keep the phone a couple of months extra -- you just need to make sure you've made half the payments, and continue making payments so long as you keep the phone (at least until it is paid off).

 

[NicholDad3]

I've been searching through this thread and I haven't found this question asked. But forgive me if I've missed it.

What if I'd like to enroll in the iPhone Upgrade Program and I wish to place a down payment of say...400.00 at the time of enrollment? Is that possible; or would I simply enroll and then make the 400.00 payment at the time of my first bill? Also can this even be done? I've been on payment plans with carriers such as AT&T in the past, and the only way I could pay down the phone was to either keep making the monthly payment; or pay the entire remaining balance.

Any thoughts?

 

[mattguy10]

I've been searching through this thread and I haven't found this question asked. But forgive me if I've missed it.

What if I'd like to enroll in the iPhone Upgrade Program and I wish to place a down payment of say...400.00 at the time of enrollment? Is that possible; or would I simply enroll and then make the 400.00 payment at the time of my first bill? Also can this even be done? I've been on payment plans with carriers such as AT&T in the past, and the only way I could pay down the phone was to either keep making the monthly payment; or pay the entire remaining balance.

Any thoughts?

Once the phone ships or you pick it up at the Apple Store, you will be charged tax as well as the first months payment. Every month there after you will be charged the amount set by Apple for the model phone & configuration you chose. This amount is automatically paid every month. You do not receive a bill in the mail, only an email a few days before letting you know the amount will be automatically paid soon for that month. If you want to pay a chunk like the $400 you mentioned, you’ll need to contact Citizens One, give them your loan number and they’ll ask you the amount you want to pay. You can not however change the monthly amount set by Apple, so after you make the $400 one time payment, the preset amount will still be charged to your account automatically once per month until the phone is paid in full.