How to lease an iPhone instead of buying one

photoschmidt/Shutterstock

With the newly announced Apple Upgrade Program, you can get access to all the latest Apple products without the hefty initial price tag by leasing instead of buying. It's part of a new partnership with Klarna, replacing the previous iPhone Upgrade Program. The new program is interest-free leasing only, and expands to cover iPads, Apple Watches and Macs instead of just iPhones.

According to Apple, the decision to discontinue the iPhone Upgrade Program in favor of the new system was done as a way to offer "more flexibility, better value, and a more seamless experience." Coming off the heels of a sharp price increase in Apple products, the Apple Upgrade Program does seem like a much easier way to experience the company's tech without breaking the bank. This is how you can take advantage of the new program.

The directions for leasing an iPhone depend on if you're already enrolled in the iPhone Upgrade Program or not. Those within the old program can continue making payments as usual until their previous contract is up, then can choose to either keep their existing device or switch to the Apple Upgrade Program to get a new one.

For new users wishing to lease a device with the Apple Upgrade Program, simply proceed to the Apple Store (online or in person) as usual, select the device you wish to lease, and choose Apple Upgrade as your payment option. From there, you'll fill out a Klarna application for the lease, which needs you to supply basic information like your name, date of birth and Social Security number. Klarna will run a soft credit check, which means it won't impact your credit score. Once approved, you'll receive your device and can manage the lease within the Klarna app.

Not everything on the Apple Store can be leased with the program, but many things can. It's worth noting that to lease an iPhone, it'll need to be activated with AT&T, T-Mobile or Verizon. The products you can lease with Apple Upgrade Program are:

• All models of iPhone (except iPhone 16)

• MacBook Air

• MacBook Pro

• iMac

• Mac Studio

• iPad Pro

• iPad Air

• iPad Mini

• Apple Watch Ultra

• Apple Watch Series 11

When you enroll, you can also trade in an old device to potentially lower the payments on your initial lease agreement. You can lease multiple devices with the program, but you'll need to apply for each lease separately. The product you choose will determine the potential length of your contract: iPhones and Apple Watches have 12 to 24 month lease terms, while iPads and Macs are 24 to 36. When your lease period ends, you'll receive a notification from Apple, and will have three options: return your current device and upgrade to a new one, leave the program and return your device or buy the device outright with a one-time payment.

Yarrrrrbright/Shutterstock

The biggest difference between the Apple Upgrade Program and the iPhone Upgrade Program (besides the eponymous change in products included) is that in the previous system, payments were applied directly to the phone. This meant that at the end of the contract, users would own their phone outright with no additional fee.

The iPhone Upgrade Program also included AppleCare protection, while the new one does not. Apple does recommend a separate subscription to the service, as leased devices that are returned damaged will incur a fee. Devices that have AppleCare that are sent back damaged may still get a service fee, though, and the company doesn't specify the difference in price.

Though users don't get easy ownership with the new program, the monthly prices are lower than before. The lowest monthly rates in the iPhone Upgrade Program generally hovered around $30, and now begin at just $17.99 for an iPhone. Watches and iPads are even cheaper, starting at $11.99. With the official reveal of new Apple products likely on the horizon this September, the Apple Upgrade Program could be a good deal for those looking to upgrade. Users should just be sure to consider whether leasing rather than owning is their preferred method, and if the often-incremental updates between Apple generations necessitate always staying up to date.