The iPhone 7 created ripples in the smart phone market once it was unveiled on 7th September 2016. Its notable 12-megapixel camera, water and dust resistant exterior, dual speakers, and other unique specifications give the device an unmatched appeal. Apple has priced the iPhone 7 at INR 60,000 and INR 80,000 for the 32GB and 256GB variants respectively. However, with the price tag that comes with this luxurious phone, many may find it difficult to purchase one. This article talks about Buying an iPhone 7 in the iPhone Upgrade Program vs. Buying it on a Consumer Durable Loan
Financing options
In case your financial position does not allow you to make an outright lump sum payment, there are other modes of payment that can ensure you own this high-end device. These include loans, credit cards, and the iPhone upgrade program. However, using a credit card lowers your credit card limit and also charges a higher rate of interest as compared to loans. Therefore, it is advisable to purchase phones without a credit card.
iPhone Upgrade Program
Apple has also given its buyers access to the iPhone Upgrade Program. According to this program, buyers may spread the cost of the phone over a period of 24 months. These spaced-out payments allow buyers to avoid financial roadblocks. Additionally, buyers may also upgrade to the latest iPhone after six months, if a minimum of twelve payments is made. However, buyers may have to pay for an insurance plan known as AppleCare+, which could incur an additional cost over the phone.
The other option available to consumers is to take a loan. Recognizing the urgency to buy this coveted phone, many lenders offer durable consumer loans at competitive rates of interest. Buying the iPhone on EMI (Equated Monthly Installment) is light on the pocket and grants borrowers the power to purchase. Additionally, banks and lending institutions also provide customized repayment schemes, quick approval, minimal documentation, and other benefits.
The right choice
Each financing option has its own set of benefits. However, consumer durable loans offer more benefits than other options mentioned above. Lower credit card limits and higher interest rates on credit cards make buying iPhones on EMI without a credit card a more feasible option.
Also, though the iPhone Upgrade Program seems to be an attractive option, you may end up incurring higher monthly payments inadvertently. Moreover, you have to trade in your current phone, which means you cannot sell the phone even if you wish to. Leasing the phone leads to higher costs than purchasing it through a consumer durable loan.
Therefore, it financially advisable to buy phones on EMI as it helps you obtain the luxury gadget in a pocket-friendly manner.
