Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Update: because the phone was stolen, the original owners of the iPhone got to keep their replacement without paying the extensive fee. Because I helped them out in that sense, they let me keep the phone! It all worked out this time... But I'm still looking to put the mofo who sold it to me in jail.
 
Unwanted advice: if you can't buy an iPhone from an Apple Store or through a carrier under contract, you probably can't afford an iPhone. Probably you'd be better off accepting it, instead of buying second hand luxury devices from strangers through a great tool thieves love.

You couldn't be anymore wrong.

I buy my iPhone off Craigslist. Why should I A: lock my self into a 2 year contract or B: buy it off apple for $650?

Yes CL is is risky but when you know what you're looking for you get it much cheaper.

Bought my iPhone 5s of craigslist for $450 in October. Just a month after it was released. Beats paying $650 off contract.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.