How does the upgrade every year work?

Discussion in 'iOS Devices' started by TheForce, Sep 12, 2018.

  1. TheForce

    TheForce Topic Starter SatelliteGuys Master Supporting Founder Pub Member / Supporter

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    I understand that you pay monthly for the iphone that appears to be interest free but the 12 months payments do not equate to the total cost of the iphone. So how is that balance due handled at the end of 12 months to get the upgrade for continued new monthly payments based on the upgrade price?
     
  2. TheForce

    TheForce Topic Starter SatelliteGuys Master Supporting Founder Pub Member / Supporter

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    I think I found the answer. You have to turn your existing phone in in good condition or pay the repair bill on it. If you keep it for two years or more it's yours and you haven't paid anymore than if you paid up front. Basically it's like a lease for the same price as paying up front. The only downside is the application will ding your credit card for a fixed monthly payment and this will impact your credit score.
     
  3. lparsons21

    lparsons21 SatelliteGuys Master Lifetime Supporter

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    Essentially you are trading in your one year old phone whose value is set to whatever is owed at that time. A zero sum game as the new phone you would get at the one year point is sold to you at full retail plus the cost of AppleCare+.


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  4. TheForce

    TheForce Topic Starter SatelliteGuys Master Supporting Founder Pub Member / Supporter

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    I saw my CC was billed for the full two years of sales tax payments already. Still no monthly phone charge yet. I didn't think that was legal here in Florida. My sales tax info I get every year says if my business leases a product I have to charge sales tax on the monthly payment, not on the full amount of the contract.
     
  5. klang

    klang SatelliteGuys Master Pub Member / Supporter Lifetime Supporter

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    The contract is actually for two years of payments. I consider it a lease.
     
  6. lparsons21

    lparsons21 SatelliteGuys Master Lifetime Supporter

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    Apple doesn't call it a lease even though it works just like one in essence. So it is a sale @full price+tax and then financed.
     
  7. TheForce

    TheForce Topic Starter SatelliteGuys Master Supporting Founder Pub Member / Supporter

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    Thanks, that makes sense!
     
  8. rockymtnhigh

    rockymtnhigh Hardly Normal Supporting Founder

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    I just checked my Verizon account. My 8 plus is at slightly over 50% paid. I am eligible to turn it in for a new phone, keep paying, or pay it off in total, and it then becomes mine.
     
  9. navychop

    navychop Member of the Month - July 2014! Pub Member / Supporter Lifetime Supporter

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    Waiting for first hand reviews?


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