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Honestly...buying phones through the carrier is one way to stay poor (or at least get stuck in an overly-expensive cycle). So more accurately, it's a case where "having more money available makes it cheaper".
Almost always, carrier subsidized phones do so with statement credit that keeps you tied to that carrier/plan for 2 years or more.
You could pay off early, or you could switch carriers...but then you're missing out on that subsidy.
Alternatively, if you buy through OEMs, especially for flagships, they often have trade-in deals for previous phones, and often times they are quite good.
Sometimes you can even find a model phone that's allowed to trade...that fetches he's a trade-in credit 2-5x more than what the phone goes for on swappa. Do with that knowledge what you will...
And not to mention, like you said, lots of deals to be had out there on last-years models and manufacturer-refurbished phones. Buying used phones can be dangerous unless you know for sure it's unlocked and not stolen.
I'd be weary buying a used phone on eBay or at a flea market or even FB Marketplace...but I think swappa protects for that exact circumstance.
And if you aren't looking for a plan with phone subsidies, you can find much less expensive service.
But for it to work, you usually have to buy the phone outright.