How to rent an iPhone instead of buying one

With the recently announced Apple Upgrade Program, you can access all of the latest Apple products without the high upfront price by leasing instead of buying. This is part of a new partnership with Klarna, replacing the previous iPhone Upgrade Program. The new program is only for interest-free leasing and extends to 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 made in an effort to provide “more flexibility, better value, and a smoother experience.” Following a big price increase for Apple products, the Apple Upgrade Program appears to be a much simpler way to experience the company’s technology without breaking the bank. This is how you can benefit from the new program.

Instructions for leasing an iPhone depend on whether or not you are already enrolled in the iPhone Upgrade Program. Members of the legacy program can continue making payments as usual until their previous contract ends, then can choose to keep their existing device or upgrade to the Apple Upgrade Program to get a new one.

For new users wishing to rent a device with the Apple Upgrade Program, simply visit the Apple Store (online or in person) as usual, select the device you wish to rent, and choose Apple Upgrade as your payment option. From there, you’ll fill out a Klarna lease application, which requires you to provide basic information like your name, date of birth, and social security number. Klarna will run a soft credit check, meaning it won’t impact your credit score. Once approved, you will receive your device and can manage the lease in the Klarna app.

Not everything on the Apple Store can be rented with the program, but many things can. It’s worth noting that to rent an iPhone, it will need to be activated with AT&T, T-Mobile, or Verizon. Products you can rent with the Apple Upgrade Program are:

When you sign up, you can also trade in an old device to potentially lower your initial lease payments. You can rent multiple devices with the program, but you will need to apply for each rental separately. The product you choose will determine the potential length of your contract: iPhones and Apple Watches have lease terms of 12 to 24 months, while iPads and Macs last 24 to 36 months. At the end of your rental period, you will receive a notification from Apple and will have three options: return your current device and upgrade to a new one, exit the program and return your device, or purchase the device directly with a one-time payment.

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

The iPhone Upgrade Program also included AppleCare protection, while the new one doesn’t. Apple recommends a separate subscription to the service, as rented devices returned damaged will incur charges. AppleCare-enabled devices returned damaged may still qualify for a service fee, and the company doesn’t specify the price difference.

Although users cannot easily take ownership of the new program, the monthly prices are lower than before. The iPhone Upgrade Program’s lowest monthly rates typically hovered around $30 and now start 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 in September, the Apple Upgrade Program could be a good deal for those looking to upgrade. Users just need to be sure to consider whether leasing rather than owning is their preferred method, and whether the often incremental updates between Apple generations require always staying current.