Is Buying iPhone 15 on EMI Worth It: The marketing frenzy unleashed by Apple over the past two decades reminds one of the mad rush to buy the first Harry Potter book over twenty years ago. Some products have a following that has nothing to do with practical applications.
The newest iPhone is an aspirational product, but it may set you back anything from $79,999 to $1,59,990. Getting a loan to pay for a phone or vacation is commonplace now. However, this raises the question of whether or not one should use EMI to purchase a luxury item.
We examine the issues one needs to think about and, hopefully, resolve, prior to making the choice.
Is Buying iPhone 15 on EMI Worth It: Can I really afford it?
It’s important to ask yourself this question before buying anything, or at least anything that’s a want and not a need.
The general rule of thumb is to spend no less than 70% of your disposable income satisfying your needs and wants. Put aside the remaining 20% for long-term savings and investment.
Rule of thumb estimates can be challenged. However, based on the aforementioned, if your monthly take-home pay is 50,000, you should spend between 15,000 and 20,000 on a phone.
According to the aforementioned rule of thumb, your monthly income must be greater than 2.5 lakh if you choose to purchase the most affordable iPhone 15 model.
Does that indicate that you should not buy the iPhone 15 if your annual income is less than that amount? That assumption is incorrect.
Need vs Want
Therefore, the next inquiry is whether or not you actually require it. A new phone is not necessary if the one you got last year is still serving you well.
If you are a content creator who relies on photography and videography for your livelihood, the iPhone 15 could be a good investment. If that’s the case, it’s possible you may afford to splurge because you’re meeting a genuine need rather than just a hankering.
Most customers are making a “want” purchase. You’ll need some shrewd maneuvering for it. One alternative is to purchase the product’s previous model, in this example the iPhone 14, which is currently on sale for 62,999. Used iPhones, which are reconditioned but still covered by Apple’s guarantee, are another alternative.
Is it possible to pay for it in equal monthly installments (EMIs)?
There is a wide variety of ways to pay for these aspirational things, including credit card installment payments, buy now, pay later, and others. Despite having no interest and a shorter term of six months, the EMI on a no cost EMI plan is still very high.
Longer EMI terms with a lower EMI will incur interest charges, causing you to pay more for the product in the long run.
Experts in personal finance frequently warn against taking out a loan to purchase an object that may decrease in value over time.
If you choose an EMI and then skip a payment, you could face steep fines and see your credit score drop. If you are unable to make the repayments on time, you may find yourself in a debt trap.
The lesson here is obvious: don’t take on more than you can handle.