Rafomac News, Tech & Trends That MatterApple’s shiny titanium Apple Card grabbed headlines back in 2019 with its tempting 3% cashback and zero-interest financing on Apple products. Fast forward, and the new Apple Upgrade Program is shaking up the game—offering a leasing option that could change how you pay for your next iPhone or Mac.
How Apple Card Financing Works
Launched in 2019, the Apple Card promised 3% cashback on Apple purchases and a smooth 0% interest financing plan for 6, 12, or 24 months depending on your chosen product. This meant you could grab an iPhone or Mac and pay it off over time without burning extra money on interest.
One unique perk was the immediate cashback; if you financed a $1,000 device, you’d get the $30 cashback upfront, not dribbled out over the months. Plus, since the product was yours from day one, you had full freedom—trade it in, change carriers, or use it however you liked. There were no extra approvals for financing if you were already an Apple Card user, making the process seamless.
And the financing options spanned a wide range of Apple gear—from iPhones to AirPods—managed effortlessly through the Apple Wallet app. You could even pay off your balance early without fees, keeping control over your device and payments.
Introducing the Apple Upgrade Program
The Apple Upgrade Program took a different approach—leasing instead of financing. Initially viewed with skepticism, leasing hardware felt like a potential trap. But looking purely at the numbers, it presents an enticing alternative.
Like financing, the program offers 0% interest payments, but typically with a lower monthly cost. For example, the latest iPhone 17 Pro retailing at $1,100 costs about $45 a month on Apple Card’s monthly installments over two years. Leasing that same phone reduces your monthly payment to around $32, though a balloon payment of $350 to $400 remains if you choose to own it after 24 months.
The catch? During the lease, the device technically belongs to Apple and Klarna, not you. However, flexibility is offered—you can return the device and upgrade to a new one rather than committing to ownership. For bigger purchases like Macs or iPads, leasing can stretch out to 36 months, making it a strategic tool for businesses looking to manage cash flow or expenses.
Which Option Makes More Sense?
It boils down to your upgrade habits and finances. If you keep your Apple devices for more than two years, financing through the Apple Card makes more sense—it’s straightforward ownership with no surprises, and you get to tote the device as yours from day one. Also, the financing encompasses a broader selection of Apple products, including accessories like AirPods.
If you’re a serial upgrader who wants the latest gadgets every couple of years, the Upgrade Program’s leasing model is enticing. It lets you cycle machines regularly with lower monthly payments, but there’s no ownership unless you pay that final balloon amount. Though it means ongoing payments, the flexibility appeals to those wanting to stay on the cutting edge without an upfront cash crunch.
The Chase Factor and What’s Next for Apple Card
Apple recently announced the transition of the Apple Card to Chase. This move could disrupt the current zero-interest monthly installments, since Chase typically doesn’t offer 0% interest financing on its credit cards. Rumors suggest that this feature may phase out over the next couple of years, making the Upgrade Program the more viable option long-term.
Apple says customers can still use monthly installments for now, but the transition hints at an eventual endgame where leasing replaces financing for many users.
What You Should Keep in Mind
Both financing and leasing require discipline. Leasing might appear cheaper month to month, but it involves ongoing payments unless you opt to buy the device at the end. Financing locks you into ownership upfront, but spreads your payments interest-free while keeping the loyalty perks intact.
Choosing the right path depends largely on your financial habits and how frequently you upgrade. Whether you cherish ownership or crave the latest tech every year, Apple’s two-pronged approach gives you options—though the Upgrade Program may be nudging the Apple Card’s monthly installments closer to obsolescence.
For those who want a clear side-by-side comparison, the monthly installment option by Apple Card charges roughly $45 a month for an iPhone 17 Pro over 24 months, while leasing drops that to around $32 monthly with a final payment if you want to keep the device. Beyond numbers, ownership and user experience play crucial roles in deciding what works best.
The full end of the Apple Card’s zero-interest financing may come as Chase acquires the card services in 2028. If that’s a primary reason you use the Apple Card, reassessing your options makes sense now.
So where do you stand? Stick with straightforward financing or embrace leasing? Either way, Apple’s ecosystem continues to evolve—giving you new ways to access its products without a lump sum upfront.
