Should I pay full price for an iPhone purchased under a Yearly Upgrade Plan?

[recDNA]

If I were to buy a new XS MAX at tmobile and open a single line with unlimited plus is the yearly upgrade plan a good deal or would I be better off just paying cash for my phones at Apple Store?

 

[Just_Me_D]

Re: Yearly Upgrade Plans

If I were to buy a new XS MAX at tmobile and open a single line with unlimited plus is the yearly upgrade plan a good deal or would I be better off just paying cash for my phones at Apple Store?

If you’re NOT going to keep the device longer than a year or pass it along to a family member then you might as well do the yearly upgrade.

 

[recDNA]

Re: Yearly Upgrade Plans

If you’re NOT going to keep the device longer than a year or pass it along to a family member then you might as well do the yearly upgrade.

Does it actually save money or merely defer payment?

 

[Just_Me_D]

It’s a trade-off. You keep getting a new device each year whereas Apple or your carrier get continuous rent money from you as well as your year old iPhone of which it can then sell or exchange as refurbished.

 

[recDNA]

It’s a trade-off. You keep getting a new device each year whereas Apple or your carrier get continuous rent money from you as well as your year old iPhone of which it can then sell or exchange as refurbished.

I guess my point is if I pay full price then sell it myself and buy a new one will I spend more or less?

 

[Just_Me_D]

I guess my point is if I pay full price then sell it myself and buy a new one will I spend more or less?

Let’s say that the device you’re wanting to get will cost $1100 and you owe $400 on your current iPhone.


If you trade in your current iPhone and assume payments of $45.83 each month for the Yearly plan, you will have formed over $550 Plus your old iPhone by the time the next iPhone models go on sale.

Let’s say you sell your current iPhone model and are able to get $600 for it AND you’re able to get on the Yearly plan without putting any money down. You will then fork over $550 by the time the new iPhone models go on sale. In other words, because you sold your old iPhone for $600 prior to joining the Yearly plan, you’ll actually only pay $50 for that year’s use of your new iPhone because you sold your current iPhone for more than the total of payments for the year of being in the Yearly plan.

In this example, it’s cheaper to sell your current device and then join the Yearly plan.