This sounds exactly like what the major cell providers do with phones, or at least what AT&T does. Monthly interest-free payment to pay for the phone in 24 or 36 months, ‘upgrade’ available at half or an arbitrary percentage of the device having been paid off. It’s ‘your’ device, but to sell it you have to pay off the balance remaining on the note. If you upgrade early, and the device is still in good condition, they zero out the note at that point, but it still counts as buying a new device, so you incur tax + an arbitrary ‘activation’ fee just like you bought a new device with cash.
This sounds exactly like what the major cell providers do with phones, or at least what AT&T does. Monthly interest-free payment to pay for the phone in 24 or 36 months, ‘upgrade’ available at half or an arbitrary percentage of the device having been paid off. It’s ‘your’ device, but to sell it you have to pay off the balance remaining on the note. If you upgrade early, and the device is still in good condition, they zero out the note at that point, but it still counts as buying a new device, so you incur tax + an arbitrary ‘activation’ fee just like you bought a new device with cash.