When it’s time to upgrade your phone, trade-in offers are everywhere. They’re designed to make getting the newest model feel easier and more affordable.
Trade-ins are popular because they benefit both you and the carrier. You get an instant price break, and the carrier gets your old device to refurbish and resell.
But it’s still worth thinking twice. Keeping your old phone can offer perks like resale value, a backup device or a hand-me-down for a family member.
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Why trade-in deals are so common
Trade-in deals are common because they benefit companies and are appealing to customers, too. By offering customers deals to trade in an old phone, manufacturers and carriers can encourage customers to trade up sooner, driving sales.
They can also refurbish and resell the phones that they take in on trade, which can help companies expand their customer base into those looking for phones at a lower price point. Offering trade-in deals also serves the important purpose of boosting customer loyalty, since customers will continue paying for service as they’re paying down the cost of their new phone.
But trade-in deals offer benefits to consumers, too. Trading in an old phone can help to make the cost of buying a new phone more affordable. It’s easy and simple to trade up for a new model, plus you won’t have to worry about recycling or disposing of your old phone.
Benefits of keeping your old phone
Keeping your old phone offers several benefits:
- Resale: Many lightly used phones still hold significant value, and you can potentially resell your old phone for cash.
- Backup: Keeping your old phone means you’ll have it available as a backup device if you lose your phone or if it breaks. You can use your old phone as a backup while waiting for repairs or a replacement, so you can stay connected until your new device arrives.
- Hand-me-down: Many parents choose to keep an old phone as a hand-me-down device for family members. Giving your kids your old phone can make a lot of sense, especially if they’re younger and are still learning how to properly care for a valuable phone.
- Avoid e-waste: Keeping and repurposing your old phone can help reduce e-waste, or discarded electronic devices. If you no longer have a use for your phone, be sure to recycle it appropriately. You can find local recycling sites through Call2Recycle.
How Verizon’s monthly phone financing works
It can be tempting to trade in an old phone to make your new device more affordable, but Verizon’s monthly phone financing can make it easier to pay for a new phone even if you don’t have a trade-in.
Verizon’s monthly phone financing divides your phone’s cost into 36 monthly installments. You can pay those installments over the full 36-month period, or you can pay the balance off in full at any time. Current Verizon customers can use the payment agreement when they add a line to their account or upgrade a device.
A credit check is required to qualify for financing. To increase your chances of approval, Verizon recommends that you pay all of your balances on time and pay off any past-due amounts over $25 before you apply.
When a trade-in does make sense
Trading in your phone may make sense if you have a newer phone that will substantially reduce the cost of your upgrade. You may also consider a trade-in if you’re looking for a fast solution and don’t want to deal with the hassle of selling your phone.
If you have a little time to work with, then keeping your old phone may make more financial sense. Chances are you can make more money off of your phone if you sell it yourself than you would by trading it in. That’s particularly true if your phone is a little older and has lost some trade-in value.
How to evaluate your current phone’s lifespan
To get a sense of how much lifespan your current phone has left, you’ll need to consider several factors:
- Battery health: As phones age, their battery health declines, meaning you’ll have to charge your phone more often as you use it. You can check the battery on an iPhone by going to Settings and choosing the Battery option. On an Android, you’ll find the Battery information in the Settings section. If your phone has less than 50% of its battery health, it’s time to start thinking about a replacement.
- Storage capacity: As your phone starts to run out of storage, your usage options will be limited. You can add storage to a newer phone, but it usually doesn’t make much sense to add storage to an older, less valuable phone. To check your storage on an Android, go to Settings. Your phone should have a Storage or Device Care option with details about your available storage. If you have an iPhone, navigate to Settings, General, and iPhone Storage.
- Operating system support: Manufacturers only support operating systems for so long. Six to eight years of support is pretty common. Check your phone’s operating system and do a little research to see how long its support period is. Once you’re beyond the support period, the manufacturer will stop issuing software updates, so you could start to encounter technical and security issues.
These factors can help you determine how much more use you might get out of your old phone, and they can make it easier to decide if you should trade it in.
If you decide to purchase a new phone, consider how you’ll make the purchase. Buying a phone outright gives you more carrier flexibility, since you can switch carriers if you want. But if you need to finance your phone, you’ll need to stay with your carrier until you’ve paid it off, which could be frustrating if the carrier’s coverage or service doesn’t work well for your needs.