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Apple Announces New 'Trade Up With Installments' 24-Month iPhone Payment Plan

Apple today announced a "Trade Up With Installments" payment plan that will let users trade in an old iPhone, Android, or Windows Phone and put the value of that device towards a new 24-month iPhone installment plan (via CNET). Available only in Apple Stores within the United States, the new program is a combination of Apple's classic reuse and recycle program and the newer 12-month iPhone Upgrade Program that launched alongside the iPhone 6s and iPhone 6s Plus last year.

According to Apple, Trade Up With Installments is "really geared toward people who have older generation iPhones." As with most trade-in programs, the older model of the phone that is traded in, the lesser its value. With Apple's new initiative, a new factor is thrown in depending on the model of iPhone that users are looking to pay off on the 24-month installment plan. So, for example, if someone were to trade in an iPhone 4 for a 16GB iPhone 5s and receive maximum trade in value, the monthly payment would be on the lower end, equating to $14.58/month.

Using the same iPhone 4 to trade in for a 128GB iPhone 6s Plus would net a $35.37 monthly payment on the new program. AppleCare+ isn't included in these new plans, so users will have to pay extra if they seek the Apple iPhone insurance. Specifics weren't given regarding Android and Windows Phone value, but Apple ballparked their trade-in value to somewhere between $100 and $300, lining up with the monthly values of the iPhone 4, 4s, 5, 5c, 5s, and 6.
Whatever phone you purchase will be unlocked, which means you're not tied to a specific carrier (though you still have to sign up for wireless service for the iPhone). The maximum trade-in values are the same as for the regular trade-in program. That's $100 for the iPhone 4 and 4S; $200 for the 5, 5C and 5S; $300 for the 6; and $350 for the 6 Plus.

The amount doesn't change based on how much storage you have. You'll get as much for the 16GB version of an iPhone as for the 128GB, despite the fact jumping from 16GB to 128GB cost you $200 when you bought the phone. And the values are for phones with regular use, so don't worry if your device isn't in pristine condition. If you have a cracked screen or other damage, you won't get as much money.
Unlike the iPhone Upgrade Program that offers a monthly installment plan but lets you upgrade your device yearly with a trade-in of your old device, the Trade Up With Installment program requires the device to be completely paid off before it can be traded in for an upgrade.

For a full breakdown on the trade-in values of old devices and the cost of new installment plans, check out CNET's comparison chart.

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Top Rated Comments

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33 months ago
Why make a cheaper phone when you can just make a loan?
Rating: 7 Votes
33 months ago
My ATT installment for iPhone 6S plus is $35.42 without a trade in. So an iPhone 4 trade in could have saved me $.05 per month. ?
Rating: 4 Votes
33 months ago
Convenience usually wins, even if it is a rip off.
Rating: 3 Votes
33 months ago
I hope the plan comes out in Canada next year! I bought my 2 iPhone 6S outright and I'd much rather use this plan so I can get new phones every year instead of every 2 years like I've been doing.
Rating: 3 Votes
33 months ago
Wow getting the same for 16 and 128 GB, this must be a super deal for 16 gb owner, not so much for 128 buyers!!

Even so, I think a 16 gb could sell for a little bit more online if it was in pristine condition.
Rating: 3 Votes
33 months ago

My ATT installment for iPhone 6S plus is $35.42 without a trade in. So an iPhone 4 trade in could have saved me $.05 per month. ?

Now that you've saved a ton with the Apple Trade Up Program what are you going to do with all your money?
(hint the answer is Disney World)
Rating: 3 Votes
33 months ago
"The amount doesn't change based on how much storage you have."

Yeah, no...
Rating: 2 Votes
33 months ago

On top of that Apple stole $150 from you because you could have sold the phone for $350 on eBay yourself.

That's a good point. However I'm lazy and would rather not deal with that hassle and the risk of being scammed. I'll stick with the scam where I know how bad I'm getting screwed up front ;)
Rating: 2 Votes
33 months ago

Could I not just trade in the iPhone 4S and get the credit towards a new iPhone out of pocket? I would be buying it unlocked anyway?

You could. This is just an additional program for those who can't or don't want to pay out of pocket up front.

The more I can interact with Apple, the better. I'd feel safer handing my iPhone to Apple, vs. mailing it in to Amazon, Verizon, or some other service.

I visited a Verizon store and an Apple store to weigh the benefits of each upgrade plan. Verizon was pushy, and the whole thing just felt like a sales pitch. They also wanted to give us like $60 for my sister's 5c. Apple gave us around $200 for it, so we went with them.

I had a nightmare of a time trading in my TMO devices due to a series of incorrectly ordered upgrades (rep ordered them wrong for me). Long story short, it took them three months to locate the phones I sent in and they ended up giving me hefty credits. At the end of the day it worked out in my favor but they kept trying to tell me if they couldn't find the phones in the warehouse I would be responsible for paying them off. I was supposed to have been able to just take them into a store and drop them off there...

That was my long winded way of saying I agree with you. I'd love to buy from Apple but I also am not interested in Apple Care plus. THIS program seems to allow thhe buyer to not pay for Apple care but they also aren;t given the option to upgrade at the 12 month mark. I am trying to figure out whether or not the Apple Care requirement has been lifted on their upgrade program as well. If it has, I am just left with the decision of a yearly hard credit check versus the soft credit check TMO runs for upgrades.
Rating: 2 Votes
33 months ago

it is obvious that banks involve in all loans. "the American way" is not the best way, which is digging the hole deeper. that was why we had the real estate market crash and the worst recession ever. we save the economy by digging deeper. Do some research on the Fed printing money and paying the gov debt.

all of these loans are to fool alot of naive people into spending.

but my point is not about the bank, Fed, or loan. My point is that Apple revenue growth record is no longer based on logical consumer needs but now depends on consumer debt at a massive scale.

The fact that they have added a loan option doesn't mean their entire business model depends on massive consumer debt. I can concede your point if the majority of phones bought from Apple turn out to be financed through them. This being a relatively new program (this specific one being brand spa king new) I hardly see how you can make this assessment. Apple, in the US, always relied on consumer up front costs to be low on every model iPhone they ever sold beside he original.

To be clear about my "American way" statement, I wasn't saying is it the best or even a good way of thinking. But for a business to dismiss that this is how Americans buy stuff is foolish. As mentioned I would be more worried if Apple dismissed this way of selling product in the current market because people do very much want to finance phones. Once again, why worry for Apple? Worry for people who are willing to buy phones with money they don't have, if you want to worry about someone.

Good to know.
I believe the buy one, get one, required the free one to be a brand new line though.
I may be wrong but I think this is what I remembered from it.

It did. It's easy to add a line and have them transfer phone a phone number from one line to another line (unless they change that, I did it when selling an unlimited
Line about two years ago) and then closing the old line. Since there are no ETFs the only caveat is the old line can't have a next device plan attached to it, but I think that's a logical given.
Rating: 2 Votes

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