iphone trade in 2022

Sort of. This is a promotional trade in which means you will get a lot more than what the fair market value. For example, Apple is offering up to $200 trade in for an iPhone 11. Apple usually offers slightly more than fair market value.

The promotional trade in will be given to you in two parts:

1. Fair market value in the form of one time credit. You can assume it will be less than $200 so let’s say you get $150. This will show up in the next 1-2 billing cycles.
2. The balance $650, in this example will be given to you in the form of monthly credits over 24 months. In this example you will get about $27 in credit per month.

Now here is where it gets a little confusing. Assuming you are getting the base iPhone 14 Pro, the price is $999. On the day you make the trade in, all you will have to pay is sales tax and any fees like activation, shipping, etc. After you pay the taxes and fees, you still owe $999 so this is how it will be calculated:

1. You will get charged $999 over 24 months which is about $41.50 per month. This is basically a loan and is subject to a credit inquiry in order to qualify.
2. You will also get the credit from above over 24 months which in that example is $27 per month.
3. Your net equipment fee per month will be about $14.50. Now you may go WTF, I’m paying $350 over 24 months when it should be $200? Remember, you got $150 up front so the math is correct.

If you cancel your line before the full 24 months, then you will owe the balance of $999 loan but you will forfeit any remaining credits. This is why TMO is offering the promotion - to lock you in for 24 months.