How Apple's new leasing program works: Details
Apple has launched a new program allowing eligible customers to lease Apple products like iPhones and Apple Watches at a monthly rate.
The program, Apple Upgrade, is provided by Klarna, a consumer credit company, according to a press release Tuesday.
The technology giant said the new Apple Upgrade program can be used to lease iPhone, Apple Watch, Mac, and iPad products and will be available "on the Apple Store online, in the Apple Store app, and at Apple Store locations in the United States."
"At Apple, we put the customer at the center of everything we do," Karen Rasmussen, Apple's vice president of the Apple Store online, said in a statement included in this week's press release. "We're thrilled that Apple Upgrade offers our customers, both online and in-store, a more flexible way to pay for the products they love."
What are the lease terms on Apple products?
Apple said customers would have the option of either a 12-month or 24-month lease for iPhones and Apple Watches and longer lease periods of 24 and 36 months for Macs and iPads.
iPhones start as low as $17.99 per month, according to the company. Apple Watches and iPads, meanwhile, will start as low as $11.99 a month, while Macs will start at $24.99 per month.
Apple also said customers can also lower their product lease payments by trading in a currently owned device and making payments with an Apple Card.
How does the enrollment process work?
Customers will apply for the lease, and before finishing the transaction, wait for approval from Klarna.
The release notes that "all applicants will be subject to a soft credit inquiry that will not impact their credit score."
Once the approval goes through, customers will be able to finish the transaction.
What happens at the end of the lease period?
Once a customer finishes the terms of their lease, Apple said it will offer the option to upgrade the device, purchase the device or return the product.
All lease information is available in the Klarna app, where customers will be able to view their lease information, including billing schedules and remaining payments, Apple said.
The company noted that customers "may incur substantial fees" if they terminate their lease before the end of the initial lease term.
"With the launch of Apple Upgrade, Apple will no longer offer the iPhone Upgrade Program and iPhone Payments in the United States," the company added. "When eligible, customers currently enrolled in the iPhone Upgrade Program will have the option of leasing a new device with Apple Upgrade, financing with Apple Card Monthly Installments, purchasing the product outright, or choosing carrier financing."
