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It isn't been a hidden cost for a while. Phone companies sell the phones at full price, but consumers want the 2 year 0% APR financing.
If consumers bought the phones from a third party, there'd be absolutely no reason to lock the phone to a carrier. But when carriers also provide the financing, there's an incentive to keep them on the service until the bill is paid. Screw that.
But who is going to provide the financing otherwise?
PayPal credit is an option. No interest if you pay it off in 6 months.
It isn't been a hidden cost for a while. Phone companies sell the phones at full price, but consumers want the 2 year 0% APR financing.
If consumers bought the phones from a third party, there'd be absolutely no reason to lock the phone to a carrier. But when carriers also provide the financing, there's an incentive to keep them on the service until the bill is paid. Screw that.
But who is going to provide the financing otherwise?
PayPal credit is an option. No interest if you pay it off in 6 months.