Apple iPhone 16 trade-in guide: How to get cash for a new phone using your old phone

Apple’s iPhone 16 series is now available everywhere starting at $799, whether you want to buy it from Apple itself, a retailer, or through your wireless carrier. But the fact is that every iPhone is expensive. The “cheapest” new iPhone you can buy is still the $429 iPhone SE which was last refreshed in 2022, or you can go the refurbished route to buy a previously used iPhone that has been refurbished by a manufacturer.

But the phone you already have could be the key to subsidizing the cost of a new iPhone. Trading in your device (especially if it’s in good condition) can give you credit that can cover much of the cost of buying a new phone. Furthermore, there are a number of options you can take to achieve this, with the potential payout scaling based on the amount of effort you are willing to put into it.

We’ll discuss a number of different routes you can take to get the most money out of your existing iPhone, based on the amount of work you’re willing to invest. You can start with the easiest route, which usually involves a trade-in deal with your mobile carrier, and work your way up to websites where you sell the device personally but can make a higher profit by doing that work yourself.

iPhone trade-in deals: fast money with strings attached

During the day Apple’s iPhone 16 announcementthe company made it clear that credits for buying an iPhone 16 Pro could be as much as $1,000 when trading in an iPhone 12 Pro or newer. While these credits are real (and can be as high as $1,300 at Boost Mobile), be prepared to accept the carriers’ fine print. This largely means signing up for specific rate plans in a carrier’s portfolio, trading in your device (which the carrier will likely refurbish and reselling for its own profit), and staying signed up with a specific wireless carrier for two to three years to receive the full discount.

Although it saves a lot of money, it is essentially a contract. And if you decide you don’t like your mobile carrier anymore, you’ll find yourself having to pay out the balance on your device while losing any remaining credit. If you know that you don’t feel like looking for a new carrier within that certain time, it can be tempting.

However, many wireless carrier plan deals are common, and sometimes it’s valuable not to sign a contract to remain flexible when the right deal comes along. For example, in 2017, when Sprint was still an independent carrier, it offered a free year of service to anyone who wanted to try it out. At the time, I had a Verizon plan that I shared with my family, but my phone was paid off. I opted to take the promotion, switch my line from the family plan, and was able to get an almost free year of service with the carrier, where I only had to pay about $6 a month in taxes. Once that year was up, I stayed with Sprint for a few more months and then switched to Verizon’s Visible for a $25 per month plan.

That said, I did enter into a trade-in deal when I joined T-Mobile in 2021 while purchasing my current iPhone 12 Pro Max. The carrier offered just over $500 in bill credits when financing a new iPhone by both switching to the carrier and trading in my Google Pixel 3 XL. It saved a lot of money, and my phone is now fully paid off, but now I’d rather extend the life of my iPhone for a few more years and avoid committing to T-Mobile in case a better deal comes along. Plus, T-Mobile now only offers the best trade-in offers to customers on their most expensive Go5G plans, and I’d rather stay on my lower-rate Magenta Max plan. Without changing my plan, T-Mobile’s website claims that my iPhone 12 Pro Max could be worth as much as $300, a far cry from the $1,000 if I agreed to increase my plan. It’s a trade-off I just don’t like.

Verizon and Boost Mobile offer similar terms to receive the highest trade-in credit, and if you lose out on a lower rate plan to get the full credit, you’ll need to do some math to see if the price difference is worth it to you. AT&T offers the highest trade-in values ​​for customers on any of the carrier’s Unlimited plans, which can provide some flexibility. Personally, I’d prefer to lock in a lower monthly rate, but if you still want to buy a more expensive plan for enhanced features, the switch might make sense.

iPhone trade-in websites: make money easily, but less

There are many reconditioned device retailers and websites that offer to purchase your used device for cash payouts. And what’s especially nice about these websites is that these rewards are provided up front, whether it’s an instant discount on another device or as cash.

Apple itself offers a trade-in credit when purchasing a new iPhone, which can be used in combination with the aforementioned offers from providers. For example, if I were to trade in my iPhone 12 Pro Max for the price of an iPhone 16 Pro, Apple’s website says it would offer $300 toward the price of the new phone.

If you’re not specifically looking for a new phone, you can also trade in your device for cash through services like Gazelle. It says on that website Gazelle says it would offer $265 for my 256GB iPhone 12 Pro Maxas long as my device meets the criteria of looking “like new”, meaning minor blemishes are acceptable.

The advantage of these websites is that you can get cash or credit without having to sign a long-term agreement with a carrier, but it does mean you won’t get such a generous promotion. However, it’s important to know that when you trade in your device, the company you donate the device to will likely recondition the phone and resell it for an even higher profit. If you’re willing to put in a little more work, you can maximize the amount of money you get by selling it yourself.

Sell ​​your iPhone yourself

Although selling your own phone requires the most effort of these options, you can make the most money for your device without having to enter into a long-term agreement with a wireless carrier.

Websites like Swappa (a more device-focused marketplace) and the reliable eBay have instructions for listing your device, noting its condition, and setting a price. Both marketplaces charge seller fees for your listing; for example, Swappa charges a 3% fee while eBay has a scaling formula. However, researching the amount of money you can get for your device is quite easy as you can simply search for how much others are selling the same phone. For example, in my quick search on both Swappa and eBay, other 256GB iPhone 12 Pro Max phones are selling in the $400 to $500 range.

But while that’s significantly higher than the quotes I’ve received from Apple and Gazelle, it would ultimately depend on whether I’m willing to put in the work to build the list, verify it, and ship the device myself once it has been sold. But earning $500 for a new phone — again, without having to sign an agreement with a carrier — could be a worthwhile endeavor in the future.

Check this out: iPhone 16 Review: all about the buttons

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Timing can be everything

Whichever option you choose to trade in your device (whether through a carrier promotion or through a marketplace), keep in mind that the longer you wait, the more your device will ultimately depreciate in value. Especially since Apple reduces the cost of previous iPhone models every September, it’s very likely that the value of your personal device will drop around that time every year.

And if you count on a lucrative promotion from carriers, over time these values ​​​​will also decrease in value or disappear completely. For example, the $1,000 trade-in I mentioned earlier is only available if you’re using an iPhone 12 Pro model or newer. If you still have an iPhone 11 Pro or older, you’ll likely receive a much lower trade-in estimate from a carrier or trade-in website. It’s not a bad thing to keep older iPhone models first purchased in 2018 or later because they’ll still get software updates like iOS 18, but the chances of getting a good trade-in or a high sale price will be more challenging become.