Apple's new Apple Upgrade program lets annual upgraders lease an iPhone for 12 or 24 months, with monthly payments that look lower than paying full price. But Engadget's analysis finds that for many premium models, buying outright and trading in the phone after a year is actually cheaper than leasing and returning it.
For example, the iPhone 18 Pro costs $1,199. A 12-month lease costs $600 in total. If Apple offers $785 as a trade-in for a year-old 18 Pro, buying and trading nets an effective cost of $414, saving about $186 versus leasing. The break-even trade-in value for that model is $599; anything above that makes buying cheaper. For cheaper models like the iPhone 17e, current trade-in offers fall below the break-even point, making leasing the better option.
Leasing still has a flexibility advantage: at the end of the term, you can buy out the phone for the original price minus lease payments, then trade it in if the offer exceeds the buyout. That can match the cost of buying outright. Separately, Apple Card 24-month financing has monthly payments similar to a 12-month lease, but you still owe the remaining balance if you trade in after a year.