Buying a Used iPhone? 9 Things You Should Know

I was taken by surprise when I decided to purchase a new iPhone a couple of months ago.

And today I am sharing my experience with you. Because, with a little bit of patience, you’ll be able to save $1500-1700 each year like I am.

In the 2 years since I had last purchased an iPhone the pricing model in wireless industry has evolved significantly.  To stay competitive in the marketplace, my carrier – AT&T Wireless – has made a few significant changes.

First, the good

1. AT&T has introduced plans that no longer require a contract.
2. AT&T has reduced lower cost plans for smart phone users and families.

Then, the not-so-good

1. Now, when you buy a new AT&T smart phone on the mobile share plan (which is a much cheaper plan than I was on before), the wireless company now adds $15-45 to your plan cost each month to subsidize the cost of the device.  Because they sell you a device which “retails for $699” for as low as $99.
2. When you buy that new iPhone in a retail location, you will be charged $40-80 for sales tax depending on the sales tax rate and the price of the phone.

How I saved a ton of money

Since my monthly wireless bill was already high, I wasn’t fond of either of these new practices. So I conducted a little research.

And I found that by changing device plan (which includes 3 phone lines) from a previously popular Family Plan to the new Mobile Share plan we could save $100 monthly or $1200 annually! And who wouldn’t be interested in that?

I also found that by purchasing a used iPhone 5 from a private party seller, I could avoid the monthly device charge and the retail sales tax. Saving me more than $500 this year.

How to buy a used iPhone

Before you purchase an iPhone from a private-party seller, I recommend that you…

1.  Select a local seller – rather than buying it online and having it shipped to you. Craiglist is a good place to find a local seller. Just be aware of scams – do your homework and don’t get in a hurry. I found that there were plenty of iPhones available in my local area from $275 to $380, which is much less than that new iPhone from the retail store will set you back.

2.  Once you select a seller, arrange to meet the seller at your carrier’s company store. I’ll explain why later. Plan to spend 20-30 minutes inspecting the device with the seller.

3. Ensure that there is no screen lock or activation lock notification.

4. Check the ESN at Swappa to ensure that the device has not been reported stolen.

5. Check for water damage. Click here for a short video explaining how to do this quickly and easily.

5. Check condition and functionality of the screen, speakers, and buttons.

6. Make sure the phone is reset to factory settings by selecting Settings > General > Reset > Erase All Content and Settings

6. Have a representative in the retail store give you a new SIM card and install it in the phone. They usually do this for free.

7. Confirm the phone functions properly with your carrier. Make and receive calls, texts, etc. Browse applications. Test the wifi function.

8. Check the warranty to see how many years or months are remaining on the warranty.

9. Make sure the seller gives you the manufacturer wall charger and headphones. (or negotiate a lower price – $30 each)

I purchased a used iPhone 5 with nearly 2 years remaining on the warranty. The device looked new and has worked great. And I’m saving a load of money every month!