Apple's new Upgrade Program has a catch most people will miss

August 2, 2026

I spent 20 years in the equipment leasing business, so I have a lot of experience reading and interpreting lease agreements.

Here are a couple of things to keep in mind before signing up.

First, read the lease agreement carefully. You may even want to have an attorney review it.

The most important thing to understand is that you do not own the device. At the end of the initial lease term, you have three options:

• Upgrade to a new device and return your current one.
• Leave the program and return your current device.
• Purchase the device with a one-time payment through your Klarna account.

This is where I see the catch—and where leasing companies often generate additional revenue.

Apple says you'll be notified when your initial lease term ends, but it doesn't say how that notification will be delivered. More importantly, it's ultimately your responsibility to take action before the lease expires.

If you don't, here's what the agreement says:

If you don’t take any of these actions, your lease will be extended month-to-month for up to six months from the end of your initial lease term to decide which option is right for you. During this time, you’ll be charged your monthly payment until you take action. If a trade-in credit was applied to your lease at the time of enrollment, your payments will also increase during this six-month period because the credit is applied only to your initial lease term. If no action is taken at the end of the six-month period, Klarna will charge you the purchase option fee under your lease to buy the device outright, which equals the full price of the device at lease signing less the sum of lease payments you've already made (plus tax).

The key takeaway is simple: put a reminder on your calendar well before the end of the lease term.

If you forget, you could continue making monthly lease payments for up to six additional months. If you still don't take action after that, Klarna will automatically charge the purchase option price specified in the lease agreement.

None of this is hidden—it's spelled out in the agreement. But it's the kind of detail many people overlook until it's too late. Don't get caught!