> There's no need to overcomplicate it with "feelings", the math is fairly straightforward
It turns out that the customer's perception of a product is pretty vital to its performance in the marketplace. The math can math just fine, but if the customer doesn't feel good about it, you don't make the sale.
Subscriptions try to soften the blow of a big purchase by lowering the monthly payments under your "casual expenditures" threshold. Upfront payments reward you with an immediate sense of ownership, and no recurring anxiety about affording the item.
Combining the two in this particular order is sort of the worst of both worlds - there's a reason car loans are always low monthly payments to start, with a balloon payment at the end, when you are maximally invested...
> there's a reason car loans are always low monthly payments to start, with a balloon payment at the end, when you are maximally invested...
Balloon payment loans are very rare in the United States. I don't know where you live but I don't think you realize how unusual balloon payment loans are.
They are the default in much of Europe, though the expectation is that you'll likely trade the car in when the balloon comes due.
not in my part of europe?
> there's a reason car loans are always low monthly payments to start, with a balloon payment at the end, when you are maximally invested...
What (where?) in the world are you even talking about?