Comment by paxys

> If someone doesn’t have $400 to buy out the residual then I doubt they would have had the cash to pay for the whole thing up front.

That’s the entire point. They would have bought a cheaper phone, or held on to their old one, but are now paying perpetual monthly payments.

There’s a reason car dealerships never ask “how much can you afford”, but “how much do you want to pay every month”.

There’s a reason Klarna is running the program for them.