Apple's New Upgrade Program: Looks Great on Paper, But Read the Fine Print
Apple's Upgrade program offers interest-free leasing for iPads and other devices, but it comes with hidden fees and conditions that could cost you money.
Apple has launched a new Upgrade program that allows customers to lease an iPad Pro or other devices for 24 or 36 months with no interest. For example, a 256GB iPad Pro on a 24-month lease costs $32 per month, totaling $768—significantly less than the full $1,199 price. At the end of the lease, users can either pay the remaining balance to own the device or trade it in for a newer model.
However, the program is not as straightforward as it seems. It is a lease, not a credit purchase, meaning the user never actually owns the device. At the end of the lease, the device must be returned in good working condition, or damage fees may apply. Apple recommends AppleCare protection to avoid damage fees, but unlike the iPhone Upgrade program, it is not included.
Early termination or upgrading before the lease ends incurs "substantial" fees, according to Apple. If the lease is not paid off at the end and no trade-in is made, payments automatically continue for up to six months, and monthly payments may increase.
The program is administered by Klarna, a "buy now, pay later" company that has faced criticism for predatory practices, particularly targeting young people with poor credit. On the positive side, the Upgrade program is cheaper than Apple's own Apple Card 0% APR installment plan and easier to qualify for.
In conclusion, while the low monthly payments are tempting, users should carefully consider the terms and have a plan for the end of the lease to avoid unexpected fees.
