Earlier quoted context omitted.
And this is no different than the typical phone financing plan. You pay for the phone over 24 months but they “bundle” the cost of an additional line. You would pay for the cost of the line over 24 months but no one would call that “interest”. You could buy the phone outright and just use it over WiFi just like you can use a Peleton without the subscription. But, in both cases, it reduces the functionality of the pro…
In both the case of the phone and the Peloton, it allows someone who can't afford the item to pay for it on an installment basis. On an individual level that access to credit might be useful, but it's another form of leverage which is not always a great indicator. In fact, if people are making use of that option unusually often, economists get worried. Prior to a recession, consumers often feel more confident (and ta…
People have been getting “free phones” with a contract at least since the mid 90s when I was selling them at Radio Shack.