Swap

[Relaxed]

If I buy an iPad 2022 on a 48 month contract and it has a 36 month swap that means after 3 years I can swap it to the latest iPad or just the next upgrade? And is the rest of my contract (12 months) the same price 

[PandJ2020]

A Swap36 is a 48 month HP as you mention.

At 3 years the residual value of the device should cover the outstanding credit on the device (depending on market values and condition).  You can then start a new contract afresh.  (And the outstanding balance cleared by returning the device)

...or you can pay another 12 months (usually at a slightly lower payment) and then you own the device.

[63johnw]

Hi @Relaxed  when you swap if the iPad you are sending back is in good condition then that pays the remaking 12 months of the agreement and you can upgrade to any device you want ( provided you pass the credit checks ) and you start a new agreement at the price of the new device at that time. If the swap value doesn't cover the final 12 months then the difference is added to your next bill to be paid in one go. 

[Relaxed]

I still don't understand, when I do swap to a new device I'm only paying for 12 months at the same price. unless my old device doesn't cover the full cost in which I have to pay extra. The old device doesn't cover when the swap is too new or something else?

[63johnw]

No @Relaxed  your old device should pay off the final 12 months of your contract and you start a new contract for a new device on a new swap 36 contract. If the value of the swap phone doesn't cover the remaining 12 months of the contract then the difference is added to your next bill. For example if you have 12 months at £30 per month then you would owe £360. If the swap value is £360 then you owe nothing and start a new contract.  If the swap value is £300 then the extra £60 is added to your next bill. 

[PandJ2020 · Accepted solution]

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@Relaxed wrote:

I still don't understand, when I do swap to a new device I'm only paying for 12 months at the same price. 

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No.

Say you purchase an iPad worth £1,000.   You pay 36 months at £22.  You will then have paid £792 of that credit - leaving £208.

You can either continue paying for 12 months at around £17pm.  Once the last 12 payments are made you own it.

However, if you want a new device you start again.  Assuming the residual value of the device is £208 the outstanding balance is cleared - and you borrow another £1,000 (say).  You don't get a new device and pay just 12 months more...  So 48 more payments...