The value of the loan is just the price of the device divided by 24. Apple gets paid in full by Citizens One at the time of sale. Citizens One then splits the cost of the phone over the term length loan to get 100% of that cost back in 24 months.
Thats how any 0% consumer loan works - you are on the hook for the full loan amount at no interest if paid in full within the terms. The monthly payments don’t change. When you trade up before full terms of the loan are fulfilled, all that happens is that Apple covers the remaining fixed monthly payments using the equity of the traded in device to recoup that for themselves. You then purchase, at full retail price, a new phone and enter into a new 24 month 0% loan for the full price of that new phone.
Apple will always get their full retail price paid in full at the time of sale. And Citizens One is always going to get that full price loan back within the term limits.
A 0% fixed term consumer loan is not different, effectively than a 0% installment payment plan. You’re not getting a break in price with the trade up program since it’s all financed at zero interest. You’re just getting the option to pay over time, and if you choose, to sell your phone back to Apple after 12 months (at effectively a guaranteed evaluation) and have them use the value of that trade in to wipe out your loan.
Other than opportunity cost, if you paid full retail every time, and sold the phone after 12 months for half the cost of a new phone every time, you’d be out of pocket the same as a 24 month 0% loan/installment plan.
