Buy broken iphone? Get it replaced?

I purchased the iphone 5 when it came out and unfortunately opted for the 16gb version. These days i'm wishing i had gotten a 32gb and also hoping for a color change. So i was wondering if i could buy one on ebay (say, w/ cracked screen for a discounted price) and then take it in to apple and pay for an out of warranty replacement (which i hear costs $229)? I basically want to make sure i have my facts straight regarding apple's policy and make sure that wouldnt be 'frowned upon' lol.

No, that doesn't work
the ebay one with cracked screen are out of warranty and have already been fixed or replaced, apple will not honor those.
it will be $199-$249 to fix the screen

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