iPhone trade-in deals + Monthly Device Payments

[funnyboy88]

So we all know the carriers have for the most part transitioned to making their customers buy their device upfront or having a monthly device payment plan. Most people will opt for the payment plan.

How do retailers entice customers now? For example, in March 2014, my fiancee traded in her iPhone 4S at Best Buy and got a $50 iPhone 5s (with a 2 year contract).

It seems that with these carrier device payment plans, retailers can't offer those enticing deals. When you trade in a phone at Best Buy for $150, a Best Buy gift card doesn't actually help you buy a new phone. You just have store credit. Same with Apple.com's store. What good is a $150 Apple Store gift card if I can't apply it towards a new iPhone?

 

[JohnApples]

Since most; if not all, of those payment plans advertise a "$0 down", I imagine that trade-ins and gift cards could be applied toward a down payment and thus reduce the monthly cost.

For example, an iPhone 6 16GB goes for $0 and roughly $27 a month. If you were to apply, say, a $200 trade-in credit toward it, it would theoretically go down to around $18.75 a month.

I'm not positive this is how it works now, but it is my best guess.