Apple Drops 0% Financing in Canada as Rates Surge
Back in August 2021, Apple Canada launched 0% interest payment plans for iPhone, iPad and Mac, offering a similar service that previously debuted in the U.S.
But ahead of this fall’s expected iPhone 15 launch, and among other rumoured product refreshes, interest-free financing is no longer available, with new rates matching today’s economic climate.
Apple uses Affirm for financing on its website, allowing customers to instantly apply online, saving time at checkout by getting pre-qualified. This partnership with Affirm also provides an opportunity for customers to trade in an eligible device for instant credit toward their purchase, reducing their monthly payments.
The terms and annual percentage rate (APR) vary by Apple product. For instance, the iPhone now comes with a whopping 7.99% APR spread over 24 months, while the Mac and iPad have a 4.99% APR over 12 months. Previously, these were all at 0%. The good ol’ days of free credit are gone folks.
Apple illustrates a purchase of $1,099.00 with financing, such as for an iPhone, would result in a monthly payment of $49.70 over 24 months. The total interest charges would amount to $93.79, with no processing fees, making the total repayment amount $1,192.79.
It’s important to note that the example transaction amount does not include applicable taxes or shipping fees, which must be paid in full at the time of purchase. Accessories that are not eligible for financing will also be charged as an additional one-time payment via Affirm.
Now it’s unclear if Apple will modify these financing rates before the expected launch of iPhone 15, new Apple Watch refreshes, iPads and Macs. You can bet an 8% APR rate will turn away those seeking to buy the latest iPhone, as it has with new car purchases for the most part.