I think a lot of people pay their phones off with a contract over several years.

Signing up for a new phone contract, you start looking at a $600 phone. Thats $25 a month plus $15 for your calls and data, so $40 a month. Then you see the next phone next to it thats only $1200, it's so much better, and you're only paying $65 a month for it.

And then they flash this one in front of you, only $67 a month (just ignore the fact it's now over 3 years instead of 2)! 5 minutes later, you are in.