Why Pay More than $99 for iPhone 5?

Where can you still purchase iPhone 5 directly from Verizon? It doesn't seem to be on their website. Also, keep in mind the $99 is for a 2-yr contract, the ones you see above $300 do not require a contract extension/new contract.

Subsidies for iPhones are heavy. I'm preparing to spend $649 on the 5s, but only as a last option.

They're used on Verizon. All you'd have to do is activate it on your line, which can be done through MyVerizon or calling (877) 807-4646 from your current phone to setup service. As long as the phone being sold has a clean ESN, you're good to go. Also, they can only be used on Verizon.

They need to go to THE CDMA carrier the phone was sold for. CDMA iPhones are not portable between carriers.

Yes, they still need to activate and pay for a voice and data plan to use it. But they are not locked into a 2 year contract. They can use it for 6 months and cancel service if they want. They can sell it to someone else who can use it for 6 months on Verizon, or for the next year, or 2, or 3.

If you get an iPhone from Verizon on contract, then cancel the service after 6 months, you owe an early termination fee that is quite a bit more than that.

If you buy the $300 iPhone, you aren't stuck on a 2-year contract. What this means is that you'll still have an discounted upgrade on your line should you chose to get a newer phone like the iPhone 5s or whatever iPhone comes out next (so you don't pay the full $649, it would cost $199 instead). If you buy the $99 iPhone 5, you cannot upgrade at the discounted price for 2 years - you will have to pay full price, or go to eBay and buy an iPhone there.