Most adults can\u2019t afford a $1,000 emergency expensive. That means very few people can hand over cash for a brand-new iPhone.<\/p>\n
\u201c(My phone) is going to be mine once I get through paying for it,\u201d explained Mary Deberry, a Memphis resident.<\/p>\n
For years, Apple customers like Deberry have been able to work toward owning their iPhones by making small monthly payments.<\/p>\n
For the first time ever, Apple is allowing customers to lease certain devices, including phones. The financing is through Klarna. This new option would allow customers to pay between $17.99 and $31.99 a month for a 24-month lease. There\u2019s also a more expensive 12-month option. If a user trades in their phone, they may get a lower monthly rate.<\/p>\n
“It didn’t really surprise me,\u201d explained Teresa Murray, consumer watchdog director for Public Interest Research Group. \u201cApple products can be kind of pricey.\u201d<\/p>\n
Murray told FOX13 this option might work for a person who insists on getting the latest model every year.<\/p>\n
“If you’re the kind of person who wants to have the latest, greatest, newest, shiniest iPhone and you’re going to want a new one in a year or two, then maybe leasing might make sense for you,\u201d she said.<\/p>\n
However, she recommends everyone read the fine print. According to Apple, you will pay fees if a phone is lost damaged or stolen. A Klarna spokeswoman told FOX13 a missed payment will not impact a customer\u2019s credit score. However, after three consecutive missed payments, Klarna will terminate the lease agreement and the customer \u201cwill need to pay the full outstanding balance.\u201d<\/p>\n
Customers must also remember that they will not own their devices at the end of the lease, \u201cunless (they) pay the purchase fee.\u201d<\/p>\n
“It’s really to entice people who to spend more than what they can afford,\u201d explained Travis Moody, the CEO of Forward Memphis.<\/p>\n
If a family is struggling with other bills, Moody recommended they work toward paying off a cheaper phone.<\/p>\n
“If families are strapped for cash, it’s probably more affordable to get an older phone that costs less,\u201d he explained.<\/p>\n