How does the upgrade every year work?

[TheForce]

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?

 

[TheForce]

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.

 

[lparsons21]

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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[TheForce]

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.

 

[klang]

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

 

[lparsons21]

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.

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.

 

[TheForce]

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.

Thanks, that makes sense!

 

[rockymtnhigh]

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.

 

[navychop]

Waiting for first hand reviews?


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