You’re not saving as much as you think by keeping an old phone.
Every new iPhone is at least a little better than the previous one. Most of the time it isn’t worth spending another $1,000 or whatever. So why not just keep the phone you have now? As I found out with a little research, it might actually save you money.
iPhones lose a lot of their value in the first year. Around 35% according to a new study from Decluttr. Let’s dive into the numbers:
Last year’s iPhone 12 is $799. About $33 a month with a 2-year contract. But if you have an iPhone 11 to trade in, one in good condition is worth $390 bringing the price down to $459 or $17 a month. That trade-in value decreases significantly as phones get older.
If you hold onto a phone for longer, say 4 years, you’ll save $792 since you’re not paying anything for the phone for 2 years. But here’s what happens if you trade in that phone after 4 years? An iPhone 8 in good condition is worth up to $120. Bringing your monthly bill to $28.29.
But, I should add the 4-year-old phone has to be in good working condition. No cracks. Any damage makes it worthless. So if you typically drop a phone, have it cracked or damaged, you’re going to lose out on any savings, and a new phone will be $799 out of pocket.
You’ll only save $7 by not making monthly payments for 2 years
Just $7 more than what you’ve saved by not making any phone payments for 2 years.
Decluttr estimates iPhone12 Pro phones will lose about $168 of value next week. If you want to really save some money, shop around. Carriers are willing to drop the price even further or give you a device by switching to their company.