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system
how can the samsung upgrade programme offer 0% apr?
user
the financing is built into the price.  i do not have hard facts, but i strongly suspect that very few people buy brand-new smartphones at full price upfront.  most pay a monthly installment to the carrier or retailer equal to 1/24 of the full price, which in effect is "0% financing for 2 years".  samsung might be able to advertise a lower retail price and then offer financing at some rate of interest, but from a marketing standpoint, offering "0%" financing makes it feel like you're getting "free money", when in fact it's built into the overall price. which sounds better, buying an $840 phone with 0% financing for two years or buying an $800 phone at 4.85% apr for two years (both have a $35 monthly payment)?
assistant