New smartphones aren’t cheap, and prices could reach even higher as global trade tensions fueled by U.S. President Donald Trump’s tariff threats throw Asian exports into turmoil.
To save money, consider buying a secondhand device.
The market for used cell phones is booming. It is now growing faster than the market for new devices, according to CCS Insight, a U.K.-based technology research firm.
As each new model release sends consumers rushing to upgrade, they will also be selling or trading in their existing devices, which usually have a lot of life left.
If you're on a budget, a refurbished secondhand phone can be up to 50% cheaper than a new one, and they now come with warranties, flexible financing, and after-sales service, CCS said in a recent report.
Meanwhile, the starting price of a new top-of-the-line iPhone Pro Max could potentially rise 29% from $1,550 to $1,200, according to a UBS estimate.
But buying a secondhand device is less straightforward than buying a new one. Here are some pointers:
Apple fans will have the most choice, as iPhones account for approximately 60% of the global market for secondhand phones, according to CCS Insight. Samsung Android devices are second with about 17%. The rest is comprised of lesser-known Chinese brands, such as Xiaomi.
There are numerous online platforms to buy secondhand phones, but, like much of the internet, they are also home to many scammers. The usual advice applies: check reviews, look for trusted sellers and guarantees and avoid deals that seem too good to be true.
Try platforms that specialize in selling secondhand electronics and other goods, such as Gazelle and Backmarket. Refurbished phones are also available from retailers like Best Buy and Amazon. Phone companies also sell them, so check with your wireless carrier for availability.
Even Apple and Samsung sell secondhand devices on their websites. The advantage there is that they've been refurbished by their in-house technicians, so you'll know they'll be reliable. The downside is that discounts aren't as significant and selection can be limited. Apple's website currently only lists refurbished iPhone 13 and 14 models, for example.
When a phone is refurbished, it normally means that the data has been wiped and it has been tested and inspected for any problems. Any defective or faulty components are normally replaced.
A used phone, however, could refer to any secondhand device, including those sold by individuals through online classifieds like Facebook Marketplace. Prices could be cheaper, but it's buyer beware because used phones are often sold as-is and usually without any repairs or guarantees.
"You will get the best price if you’re prepared to handle that risk,” Simon Bryant, vice president of research at CCS Insight.
Lots of used phones are also sold on marketplaces for so-called peer-to-peer transactions that also offer better protections for buyers, like eBay or Swappa, which have policies for refunds if a phone isn't as it was advertised.
Just because a phone is refurbished doesn't mean that critical components – especially the battery – have been automatically replaced. It depends on a vendor's seller policies.
Apple and Samsung say their secondhand phones come with new batteries and, in Apple’s case, a new shell. Both companies also include a cable, a one-year warranty and a new box.
Meanwhile, other platforms might merely guarantee that a battery has a certain level of its original capacity, usually 80%.
There are ratings, but be cautious with the terminology.
Each secondhand platform will usually have its own system for grading the quality of the devices it sells. It's a useful gauge for comparing various phones that the vendor has for sale.
But keep in mind there’s no universal system of grading. One platform's rankings might, for example, read "Good, Very Good, Pristine and Like New,” while another will run from "Fair and Good to Excellent and Premium.”
Grading is "all over the place,” said Bryant, and it makes it difficult for consumers to compare, say, a $300 phone rated "Grade A” on one site with the same device on another site rated "like new” and priced at $280.
"It makes it difficult to shop around,” he said.
Bryant advises buyers to look for a phone that's about three generations old and avoid anything that dates back more than five or six generations because that's getting to the point where its Android or iOS operating systems may not be supported anymore.
Three generations is "the sweet spot," said Bryant. "You know it’s going to work. It’s going to have relatively new features and it’s not going to be used so much. So the wear and tear on the device will be less.”
Most online marketplaces have safeguards in place to prevent stolen phones from being sold to consumers, but it's essential to check the policies to ensure compliance.
If a phone is reported stolen, the carrier will usually blacklist the serial number, known as the IMEI number.
Swappa requires sellers to run their device's serial number through its online checker before listing it for sale. The number can be found by dialing (asterisk)#06#. Some phones have two IMEI numbers, so Swappa advises checking both.
BackMarket says it works with the certified sellers that use its platform to make sure there are no blacklisted phones but sometimes "a bad apple" slips through. If that happens, we will work with the buyer to return it immediately.
Most newer phones are water-resistant and can withstand being submerged for a limited amount of time. But that doesn't mean they're totally waterproof. Any moisture that has gotten inside could damage components even if the phone looks fine from the outside.
If you're buying a used phone in person, you can check if it has been exposed to liquid. Apple has a guide to finding the liquid contact indicator that every iPhone since 2006 has. Samsung has a similar page for Android devices.
Charging cables or earphones might not be included. Don't forget to budget for these.
