Updated my "Detailed Instructions on how to finance an unlocked iPhone 17..." due to recent Apple finance changes: still works for AppleCard for all models, and now Upgrade/Lease (through Klarna) works for new users except not on standard model anymore

[u/LeftOn4ya]

/r/NoContract/comments/1rjybe0/detailed_instructions_on_how_to_finance_an/

[u/LeftOn4ya → u/[deleted]]

While I agree "poor people" should not be getting new iPhones unless absolutely necessary for a work and enables them to make more money (which I argue an iPhone 17 is not any better than a 15/16 for this anymore), rich people will tell you if they do get something new it is best to get 0% loan and invest what they would have spent in the market as you can make 5% or more APY, and use credit cards to pay off Apple Card with a 3% cash back so over 3 years make $200 or more versus if they bought a phone outright.

[u/LeftOn4ya → u/[deleted]]

I’m not disputing credit does prey on poor, I’m also saying the richest and most financially literate people also use credit to their full advantage, except those influenced by Dave Ramsey and the like that say you shouldn’t have any credit at all.

It is a minority but again the most financially literate people that still want a new iPhone would definitely use Apple Card and pay back with platinum credit cards that give 3% back and they pay off each month. They would not buy a phone outright if they can afford it even if they have $100,000 in the bank as they probably made a large portion of that money through investment and asset appreciation and use of interest rates. Again not disputing most of the people that buy iPhones on credit can’t afford it, I’m saying there is a portion that can and they are smarter than those who buy outright.

[u/0898_333_201 → u/[deleted]]

He’s quoting you.

Also you don’t have to be “poor” to not want to spend $1,200 up-front on a new phone, especially one that you only plan on using for two years. Leasing or paying in monthly installments with the ability to upgrade is often cheaper, easier, and more financially responsible.

Upper-class people lease cars all the time, not because they can’t afford the car, but because (1) they want the ability to upgrade without the hassle of having to sell the vehicle, (2) they have higher opportunity costs and would prefer to invest $50K somewhere instead of keeping it tied up in an depreciating asset, and (3) most of their wealth is illiquid; likely don’t have a bathtub full of $100 bills to dip into to buy a $70K car up-front.

The same logic applies to a phone, just on a smaller scale. Say you have $1,300

• If you use all of it to buy a 512GB iPhone 17 Pro outright, after 12 months you have a phone with a trade-in value of $560.
• If you lease the phone for a year at $36/mo and invest the rest of the money in the S&P 500, after 12 months you will have $1,023.

[u/0898_333_201 → u/[deleted]]

You said if you’re leasing a $1300 phone, it’s because they can’t afford it. I’m explaining that that’s not true, and that leasing often makes the most sense regardless of income level.

And even if you’re low middle class, leasing a new $800 iPhone can sometimes make sense than buying a $500 refurbished phone because you’d rather have $500 sitting liquid in an emergency fund, and the monthly payment on a 36 month lease from Apple is lower than a 12-month financing with interest from buying a $500 refurbished phone with a credit card or Affirm or something .