This year is the first iPhone upgrade cycle after all major carriers have eliminated or de-emphasized device subsidies, and carriers are apparently anxious to scoop up new customers: especially the big spenders of the phone world, people who simply must have the newest phone model every year. Verizon Wireless apparently thinks that it’s above the price war, but is happy to offer annual upgraders a special financing option.

While competitors Sprint and T-Mobile battle it out over price, Verizon figures that the real value is in being a Verizon customer. For your carrier, or for Apple, the value is also in your one-year-old iPhone, which has value on the refurbished market. Verizon is happy to take your ancient iPhone and sell it to someone less enthralled with the newest technology, since it’s still worth a few hundred dollars.

While it’s not a “rental” program exactly, you’re paying over half of the value of the phone (at least $325) for the privilege of using it for a year.

Verizon begins offering annual iPhone upgrade plan [CNET]

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.