Is Trading In Your Phone A Sensible Thing To Do?

Your old phone might be worth trading in

So you’ve had your phone for a while, and you’re thinking of getting a newer model. Should you keep using your current phone until it gives up the ghost? Or should you trade it in for some cash savings instead?

Deciding what to do with your current phone is entirely up to you, but consider weighing the suitable options to make the right decision. If you’re a sentimental person, keeping your phone until it finally dies might be a good idea – or perhaps handing it down to a close friend or family member. If you’re not, then trading in your phone is a sensible thing to do.

Whichever route you choose, keep in mind that before you can sell your phone, it has to be paid off outright – no monthly payments remaining. The good news is that the phone doesn’t have to be unlocked to be traded in.

This post discusses how trading in your phone works and explores trading up and selling your phone as alternatives. Read on to find out the best option for you.

What does trading in your phone mean?

Instead of holding on to your phone forever, you can trade it to your telco. Trading in your phone to your telco means exchanging the phone for cash credits towards your telco bill.

If your phone is a well-kept flagship model that isn’t too old, you can get a lot of money. When the telco reflects the cash value of your traded phone onto your bill, you likely won’t have to worry about your monthly SIM plan and other telco subscriptions for a while – they will be covered by the worth of your traded phone.

You’ll find many telcos willing to accept your phone as a trade-in if it isn’t over a few years old and/or damaged. Here are how trading in your phone works for the major telcos Telstra, Optus, and TPG Telecom (Vodafone):

  • Telstra trade-in
    Telstra’s trade-in service is provided by Kingfisher. You’ll have a more seamless experience if you’re an existing Telstra customer, and you can get up to $1150 cash credited towards your Telstra bill. Customers can sign in to the Trade-in portal on My Telstra using their Telstra ID or visit the store. Both methods involve an assessment of the phone, after which Telstra will issue a quote and provide you with mailing instructions if the quote is accepted. Your cash credits will reflect on your bill within two billing cycles. If you’re on a Telstra upfront or data-only plan, the telco will transfer the amount to your credit/debit card instead.
  • Optus trade-in or trade-up
    Optus’ trade-in process is similar to Telstra’s, except that the telco doesn’t specify a maximum trade-in value. Optus also offers trade-ups for newer devices, another option that we will discuss in the next section. And like Telstra, Optus only accepts select brands – mainly the top manufacturers. Optus will assess your phone online or in-store and then issue a quote. A prepaid package will be sent in the post so you can mail your phone to Optus for credit within two billing cycles.
  • Vodafone trade-in or trade-up
    Vodafone partners with Asurion to enable you to trade-in or trade-up your phone. Their quote tool offered us $740 in credits for trading in an iPhone 13 with 512GB. Like Telstra and Optus, you can receive a quote in-store or online with Vodafone, and only some brands are accepted.

What about trading up your phone?

If cash credits on your phone bill aren’t enticing, consider trading your phone instead. It’s essential to know the difference between trading in and trading up – while the former exchanges your old phone for credits on your bill, the latter exchanges for credits towards a new phone.

If you want to upgrade to a newer device, then trading up your phone is sensible. Thankfully, you’ll find telcos that offer trade-up services too. Such telcos will reflect the worth of your used phone towards a newer device so that you can upgrade seamlessly in one place.

Keep in mind, however, that trading up your phone usually ties you up with the telco for months or years, depending on how much your old phone’s worth reduced the cost of your new phone. That tie-up isn’t only because of the cost of the new phone but also because trading up your phone for a newer device means you also have to purchase a monthly SIM plan from the telco. You would have to remain on that SIM plan for the duration of the device repayment contract.

Final words – You can also sell your phone on the second-hand market

Research shows that 10 percent of all smartphone sales in Australia are second-hand devices. So if you’re considering selling your phone for some actual cash, then you’re not alone.

While some Aussies might prefer to trade in or trade up their phones, others would rather sell their phones for outright cash. Thankfully, platforms like eBay, Gumtree, and Facebook Marketplace make it easy to sell your phone to other people for money.

Remember that your phone can only fetch what its condition suggests it is worth. So you’ll probably get high offers if you’ve maintained your phone. Also, remember that if your phone’s model is too old and outdated, you might not get much for it. In that case, you can recycle your old phone through MobileMuster or donate it to someone in need.