Buying an iPhone may beat leasing for annual upgraders
Engadget’s comparison finds that trade-in value can outweigh lower lease payments, while lease terms and carrier costs change the calculation.
For people who replace their iPhone each year, a lower monthly lease payment does not necessarily mean a lower annual cost. Engadget’s comparison of Apple Upgrade with buying and trading in a phone shows that the outcome depends on the device’s resale value and the full terms of each option.
In Engadget’s example, an iPhone 18 Pro bought for $1,199 and traded in a year later for an assumed $785 would have an effective cost of about $414. A 12-month lease on the same model costs $600, leaving the buyer about $186 ahead in that scenario. The future trade-in value is illustrative, not guaranteed.
Apple Upgrade offers the option to return the phone, buy it out or leave the programme at the end of the term. For the iPhone 18 Pro example, Engadget estimates a buyout after 12 months of about $599 before tax. If the trade-in offer exceeds the buyout price, buying out and trading in may be more attractive than returning the phone.
Monthly payments can obscure obligations that extend beyond an annual upgrade. Apple Card financing runs for 24 months, so a customer trading in after one year would still owe the remaining balance. A 24-month lease also leaves 12 months of payments; Engadget estimates that upgrading after a year on the iPhone 18 Pro would bring the total lease cost to about $840.
The comparison also depends on carrier and device costs. Apple Upgrade enrolment requires choosing AT&T, T-Mobile or Verizon, and plan prices affect the total. AppleCare is not included, and damage may lead to return fees or reduce trade-in value.
Engadget’s central consideration for annual upgraders is the full-term cost and what remains at the end: a device with potential trade-in value, a buyout decision or payments still due. Actual savings depend on the model, its condition, programme terms and the trade-in offer available.
