The Deal On Buying a Used Phone in 2010

In the car industry, the preferred term for “used” is “certified pre-owned.” It would appear the term is becoming popular in the phone industry as well. Here’s the current lay of the land.



A refurbished Samsung Reclaim, sold by Sprint for $50.
Sprint has announced a new program that will sell previously owned phones at a deep discount. The inaugural deal offers a BlackBerry Tour for $80, a Samsung Reclaim for $50, or a Sanyo 2700 for $50. The Sprint refurbs carry a 30-day warranty, compared to one year for the same phone new. Also like new phones, refurbs come in a box with all of the accessories and manuals.

What distinguishes Sprint’s program from other existing used-phone programs at other carriers is its flexibility. Purchasers of a refurb phone do not have to extend their contract and retain their seniority for getting an upgrade — Sprint doesn’t reset the meter on either of these things.

Compare this with AT&T’s plan, which sells refurbished iPhones, for example, for as low as $50 (there are 20 other handsets available). Thing is, while the iPhone may be used, the contract that comes with it is brand spankin’ new, adding years to your arranged marriage with the carrier. AT&T says it will, from time to time, sell a customer a refurb phone to replace a damaged one, like Sprint, but that is done on a case-by-case basis.

Verizon has more than 15 models of refurbished phones available to people who are upgrade-eligible. Customers are eligible for an early upgrade after 13 months, and there is a $20 upgrade fee on top of the cost of the phone. The phones range from a Droid X at $150 to the BlackBerry Curve 8530, which can be had for the upgrade fee alone. The phones have a one-year warranty, the same as a new phone.

This is not to be confused with a second Verizon program for people with lost, stolen or damaged phones that are not under warranty. There are 40 models of refurbished phones available as replacements. Customers can take advantage of that program once a year.

T-Mobile offers seven models of refurbished phones. It sells them in two price levels, just like new phones. If you buy one with a two-year contract, the phone price is lower, but your monthly minutes cost more. Or you can pay for the phone up front and get a cheaper rate which is paid month-to-month with no long-term contract. For example, a new MyTouch 3G Slide is $430 new without a contract, or $300 refurbished without a contract. With a two-year contract, a new MyTouch 3G Slide is $180, while a refurbished one is $50. The phones come with a 90-day warranty.

If you have lost or damaged your phone, another option is to buy a replacement on eBay, as a friend of mine did. He replaced a broken phone for $40, but of course, the phone has no warranty. Checking eBay, I found that many of phones cost less refurbished than the price they brought at auction.

I suppose it’s just a matter of time before a phone salesman offers a sweet deal on a slightly used Motorola, owned by a little old lady who only spoke to her family on Sundays. If you have a different strategy for upgrading or replacing a missing phone, I’d love to hear about it.