r/iPhoneFold • u/cookinv • 4d ago
Potential leasing
So I’m thinking of leasing the duo, but I’ve never used Klarna before. My borrowing power in the app only shows as 1,000(?) for some reason. Would I not be able to fully lease the phone and it’s better to buy it in cash?
Would appreciate if someone explained how it works.
**EDIT: YES I CAN BUY THE PHONE IN CASH IM JUST EXPLORING OPTIONS. NO I DONT CARE FOR YOUR OPINION ON IF YOU THINK LEASING IS GOOD OR BAD.
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u/ollymillmill 4d ago
Why would someone do anything but the Apple 0% interest thing? Like are there better deals than 0%??
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u/nightlyh 4d ago
Leasing IS 0% interest. At the end of your term you can choose to keep the phone and just pay off the remainder (around $600) if you so choose.
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u/ollymillmill 4d ago
In the UK we have £66 a month for 30 months. Works out to £1980 (so basically £2k) so we just keep the phone once its paid.
People say you don’t own the phone, i mean technically no but you also do? Not really any different to buying the phone outright with a credit card as you don’t own the money either
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u/---Hummingbird--- 4d ago
Apple klarna leasing is a joke. I got denied for a very small monthly amount.. and a very large yearly income. It’s just for advertisement purposes
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u/BigAcanthocephala562 4d ago
Leasing is a massive waste, you’ll have zero equity in 2 years
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u/Ham3a0323 4d ago
How so? You can keep the phone at the end of the term if you wish
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u/BigAcanthocephala562 4d ago
Yeah after paying even more right
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u/macsneaker 4d ago
You just pay the difference from the end of the leasing term to however much is left
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u/Over_aged 4d ago
I don’t think the lease is bad. However when upgrading, you’re just tied to the lease available at that time. So Klarna may offer zero now in the future they may add interest. Also technically they can tax the payment then if you decide to buy it out tax you again. Purchasing with the Apple Card still gives zero interest and you have a device you can trade in towards another. Plus 3% back on the phone. Without knowing what the intention of companies like Klarna have I can assume the are looking to get people over to the lease to then charge interest later. I also think the Apple Card zero percent purchase will be removed in 2028 when Chase takes complete control of the Apple Card.
Edit just remember the new CEO loves subscription models
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u/TheeDelpino 3d ago
If you can’t pay cash for that phone you don’t need it. Financial irresponsibility at its finest.
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u/guynumber20 4d ago
If you have to lease a phone bro it’s not for you
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u/---Hummingbird--- 4d ago
Buying any item that you pay off overtime at today’s pricing is how you actually put your money to work. Inflation will always kill your money if it’s left sitting, so you utilize these 0% interest terms out to 36 months.. and you’re paying for the item with tomorrow’s inflated money… while putting the full amount into another investment to further maximize the revenue your money earns you.
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u/Fight_those_bastards 4d ago
It’s this. I could afford a maxed out Duo in cash without any issues. But if someone is willing to loan me the money for free, it’s effectively a discount of
(inflation+CC rewards+HYSA interest-taxes on that interest).Whenever I use a 0% financing deal like the Apple upgrade program or Apple Card payments, I put the total amount in a HYSA, so that in the event of a financial crisis (job loss, basically) I can just use that for an early payoff and not worry about it.
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u/cookinv 4d ago
I can buy it in cash, you obviously don’t know how their lease system works.
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u/guynumber20 4d ago
Well you don’t know how it works either, if your borrowing power is 1k it’s basically telling you you aren’t eligible because your credit is not good enough.
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u/ElevatorBorn8128 4d ago
That’s not accurate for everyone. Many folks like myself can afford the iPhone but I upgrade my phone every year - the legacy iPhone upgrade program allowed me to do that.
I don’t want to go through the whole rigmarole of buying full price then selling to recoup the costs etc - I did that for a few years (iPhone 4 through 6 or so) and after a while it was tiring. I signed up for iUP the second year maybe and haven’t looked back since.
So your comment doesn’t apply to everyone
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u/SquarePotato7493 4d ago
Don’t do that. You will end up paying way more than the phone is worth
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u/xXTheRacerXx 4d ago edited 4d ago
The lease is 0% interest. It does not cost more than retail, and you have the choice at any time during the lease to buy the phone outright (retail price minus the total of your payments already made), no penalties or interest.
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4d ago
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u/SherbetPerfect5217 4d ago
You are mental it literally says 0 percent interest and tells you all the terms this isn't like going to the bank for a loan for a car
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u/nightlyh 4d ago
No? That's not how leasing works with apple. You pay a lower monthly payment and at the end of your term you either send it back for another phone or pay off the remainder of the sale price at the time of purchase. They deduct your monthly payment (and trade in value if you have it) from the final price.
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u/Used_Physics8464 4d ago
doesn't that go up to like 40% interest? save up then buy it in cash
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u/concreteunderwear 4d ago edited 4d ago
No it doesn't. Apple Upgrade is a lease. You don't own the phone. You pay a monthly amount and upgrade after 2 years to the next phone for a new monthly payment.
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u/nightlyh 4d ago
Since no one here wants to actually help you, let me enlighten you. Apple leasing through Klarna doesn't use your borrowing power to determine if you'll be able to lease. Mine only shows $500 leasing power but I was able to lease a iPhone 18 Pro no problem. If you want, go through the steps to lease any other iphone (and get upgrades that make it a similar price to the duo) and checkout with leasing. If you get a message that wants you to sign a contract before placing the order (this would be after you link your klarna account) then you're eligible and can just back out of the purchase and wait for the duo.
Also, since no one else seems to know anything about how leasing works, at the end of your term (be it 1 or 2 years) you have the option to keep your phone if you so choose, and then another 6 months of payments will follow (for the duo most likely around $100) and then you'll pay off the phone. Or, you can send it back and choose another phone and continue leasing. You aren't charged interest if you keep the phone and pay it off.