Should you lease your next Apple device? Pros and cons explained

Apple is launching a leasing program for iPhones, Macs and more. Here's how it works, who it's best for and what to consider before signing up.

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Apple is launching a leasing program for iPhones, Macs and more. Here’s how it works, who it’s best for and what to consider before signing up.

Instead of buying your next Apple device, you may soon have another option.

Apple this week unveiled Apple Upgrade, a new program in partnership with Klarna that lets customers lease iPhones, iPads, Macs and Apple Watches instead of financing them to own.

Lease terms range from one to two years for iPhones and Apple Watches and two to three years for Macs and iPads. Monthly payments start at about $12, depending on the device, and customers can lower those payments by trading in eligible devices.

What are the advantages?

The biggest advantage is a lower monthly payment. Leasing may also appeal to people who like upgrading to the newest Apple device every few years.

For example, Apple’s most expensive MacBook Pro costs more than $10,000 to buy outright. Through the new program, it can be leased for about $230 per month for 36 months.

What are the tradeoffs?

The biggest tradeoff is ownership. At the end of the lease, customers must either return the device, pay a final buyout amount to keep it or lease a newer model.

To lease a device, customers must qualify through Klarna.

Another change: AppleCare is no longer included with the program, unlike Apple’s previous iPhone Upgrade Program. Customers who want accidental damage coverage will need to purchase it separately.

Compare your carrier’s offers

If you are considering leasing an iPhone, do not forget to compare Apple’s offer with your wireless carrier.

Many carriers regularly offer promotions with a qualifying trade-in and eligible service plan. If you were already planning to stay with your current carrier, those promotions could end up being the better deal.

The bottom line

If you like having the newest Apple device every few years, leasing may be a good fit because it lowers your monthly payment and makes upgrading easier.

But if you typically keep your phone or laptop for several years or more, buying will likely cost less in the long run because you will eventually own the device and will not need to keep making lease payments.

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