Upgrade Your Phone: Should You Trade In or Sell?

For many individuals, a mobile phone is their most indispensable gadget. Hence, the idea of switching to a newer or different model can be quite thrilling. Many people opt to trade in or sell their old phones to receive some cash to assist in funding their new purchase. There are pros and cons to both options. Here's how to determine which approach is best for you.

How Does Phone Trading Work?

When purchasing your new phone directly through the manufacturer or your wireless carrier, trading it in may be the simpler option. Generally, you'll receive an estimate of the phone's value, and the carrier will provide a prepaid return kit or shipping label to cover any shipping costs. Upon receiving your phone, the carrier or manufacturer will assess its condition and provide a final value. This can be in the form of a credit card refund, credit towards your new device, or a gift card, depending on the company's policies.

Note that some trade-in programs may not accept older phones. For instance, Apple's program only extends back to the iPhone 6s. Therefore, trading in an iPhone 6 would not be an option. Suppose you wanted to upgrade from an iPhone 11 to an iPhone 12. By visiting Apple's trade-in page, you could obtain an estimate of up to $300 for your device. After answering a few questions and selecting your preferred redemption option, you can trade in your phone either in-store for an instant credit or online for a gift card or credit.

Once the phone is received and evaluated, you may receive a revised offer based on its condition. You then have the choice to accept or decline the new offer. If accepted, any difference in value will be charged or credited to your card.

The pros of trading in your phone include simplicity and convenience, without the hassle of determining pricing or logistics. However, older phones may not be eligible, and the prices offered may be lower than what you could get through selling.

How Does Phone Selling Work?

Selling your phone requires more effort but could yield more cash, which can be put towards your new purchase. Platforms like eBay, Craigslist, Facebook Marketplace, OfferUp, and others provide avenues for selling your device. eBay, for example, has a fee but provides shipping discounts and access to a large audience.

Take the iPhone 11 as an example. On eBay, it could fetch $480, significantly more than what Apple would offer for a trade-in. While selling on other platforms may be free and reach a local audience, it may involve additional logistics, such as meeting up with buyers or shipping the phone.

The decision to trade in or sell your phone can depend on factors like device value, time constraints, and personal preferences. Comparing the potential earnings from selling against the convenience of trading in can help you make the right choice.

How to Decide Whether to Trade In or Sell

Before deciding whether to trade in your phone, consider researching the selling price to assess the trade-off between convenience and potential earnings. If selling your phone could earn you significantly more but requires extra time and effort, consider if the additional cash is worth it. Your budget, time availability, and preferences should guide your decision regarding whether to trade in or sell your phone.