By Adam Dachis How to Upgrade to the Latest iPhone for Free Upgrading to the newest iPhone hardware each year means shelling out $200-$300. If you want to upgrade but don't have the cash, here's how to sell your old iPhone to cover the cost of the new one and then some. Why It Works There's no magic trick here. This is a guide to selling your iPhone to cover the cost of a newer model (and then some)—something I've done each time a new iPhone's been released. The main reason you're able to earn your money back from the sale of a year-old iPhone is because you're selling it without a contract. Buying a new iPhone without a contract would cost upwards of $500, so it's easy to sell your used device for the price you initially paid given that the buyer gets that added bonus. Easy as long as you've taken proper steps ahead of time, that is. The short version: keep it in good shape and sell it at the right time. Beyond that, there are a lot of things you have to do to make sure your iPhone retains its value for the year you'll have it. In this little guide we'll take a look at the entire process, from when to buy your iPhone to the final sale. When to Buy If you were buying a used iPhone from someone you've never met, off of Craigslist or the like, wouldn't you want some sort of guarantee that it's not going to break the next day? Because you're just a person selling your phone online, you can't really offer a proper warranty, and if you sell a year after you bought the phone, your iPhone warranty will have expired. You could buy AppleCare for your iPhone for $99, but that's a little excessive for something you're never going to use. You want to be able to offer some sort of warranty, though, and the best way to do that is sell your iPhone a little bit before the warranty runs out. If you already own an iPhone and you bought it immediately, you're probably going to have to sell your iPhone out of warranty and take a little bit of a hit. If you're getting your first iPhone or you're planning to upgrade, the trick is to buy the upgrade about a month after it's released. This way, when the newer iPhone comes out the following year, you can wait about three weeks before you try to sell it. This will leave about a week left on your warranty. It's not much, but it gives your buyer two things: peace of mind that if it breaks the next day they can get it fixed for free, but more importantly the ability to purchase an extended warranty themselves. That added peace of mind goes a long way and doesn't cost you a thing. Proper Care for 364 Days Part of the reason most people buy an iPhone is because it's pretty. Whether or not you're one of those people, you're going to want to maintain its alluring good looks or you're going to have trouble selling it. If you get a small, mostly unnoticeable nick or two you'll be okay. What you want to watch out for are scratches and other ugly blemishes. And, of course, you don't want to drop it and shatter the screen. So how do you keep it safe? The Case and Protective Film Combo Buying a case—really anything from a slim, feather case to something bulky and rubberized—goes a long way when paired with protective film. This is generally the option I choose because it's cheap (around $20-25, total, if you look in the right places) and doesn't require much work. You just snap on the case and adhere the protective film. An added benefit of using protective film for the screen is you can get a matte/anti-glare option. These films can be a big pain because you can get dust and air bubbles when applying them. Fortunately most packs come with two so you can screw up once while getting the hang of it. Alternatively, there's usually an Apple Store employee you can coerce into doing it for you. They have more practice and can do it in the repair room in the back of the store. That's about as close as you're going to get to a dust-free environment. If you do decide to go the case-and-film route, you're going to need to do a little maintenance here and there. Dust somehow finds its way into your tightly sealed case and the phone moves around a bit (even if it doesn't seem like it). This will cause minor scratches. If you have a rubberized case this will happen less, but it's a frequent issue with plastic cases (especially the snap-on, thin-framed "feather" types). Fortunately it's not a big deal. Monthly or bi-monthly, just take the case off and clean it and the back of the phone. Any dust spray will do the trick, but you can just use a damp paper towel if you're short on supplies. Once you're clean, put the case back on and you're good for another month or two. One last note: the great thing about using protective film is that you can remove it before selling the phone. When you do, the screen looks impossibly clean and unblemished, making the iPhone an easy sell. Full-Body Protection There are a few options, like the ZAGG invisibleSHIELD, that cover the entire phone in supposedly impenetrable film. This is probably your best bet for scratch resistance, but it's hard to apply and it's pricier than most protective film you can find online (since it's generally better and definitely more comprehensive). On the plus side, ZAGG has a lot of mall carts that provide free application if you buy it from them. While this isn't going to reduce the price, it'll at least ensure that you get the film on properly (and without bubbles). While protective film may set you back an extra $10 or so, you can always use it as a selling point later. Packaging and Accessories Apple's always had some pretty creative packaging, and whether or not you care, a lot of buyers will feel better about their purchase if you keep the box, the manuals, and especially the Apple stickers. If you want to take it a little further, include the unopened power adapter, cable, and headset from your new iPhone with the old model. You can just use the accessories you already have, and it's yet another step in making your used iPhone feel like it's brand new. Unlocking a Little Bonus If you want to grab a little cash above and beyond what you could normally ask for, you can go through the trouble to unlock your iPhone. If you're not familiar, unlocking is the process of opening up your iPhone to any carrier. It's a little more in-depth than jailbreaking and requires a bit of work, but it's possible to unlock pretty much any iPhone available today. People who aren't savvy enough to unlock the phone themselves are often willing to pay a little extra for the convenience. If you decide to go this route, you'll want to be careful about it. It's very important that you explain to the buyer what it means to have an unlocked phone, even if they already know. You don't want an angry buyer who didn't understand that Apple won't fix the phone and that they won't necessarily be able to update to the latest version of iOS—at least not as easily as everyone else. While you can make a little extra money this way, be clear when selling it or you could cause some unwanted trouble for you and your buyer. Making the Sale Making the sale is easy if your iPhone's in good condition and you kept all of the accessories. All you really have to do is find a buyer and make the sale. While you can use sites like eBay to quickly sell online, you pay a fee. Craigslist costs you nothing to post and claims no fees for your sale, plus you get paid in cash. While most sales on Craigslist will result in less money for you, the iPhone is an exception. For a pristine iPhone, you can expect to make back more than you paid for it—but don't expect to get your set price. People on Craigslist like to haggle, so be sure to set the price about $20-25 higher than what you expect to get for the phone. Most people will lowball you, but they're often willing to pay more. Generally people are willing to pay full price but want to feel like they got a great deal. Price it higher than what you're hoping to get and then you both get what you want. When posting the ad, don't make it too long. Many Craigslisters won't read it even if it's only a few sentences. Include the important information first: the model of the iPhone, how much storage it has, its body color, that it's in great condition, and that you're selling it because you want to upgrade (as opposed to the buyer's imagined scenario: "there's something wrong with it so they want a new one and they're going to try to screw me over"). You can cover this information in 2-3 sentences. Be sure to say thanks and leave your first name. If you're comfortable providing a phone number, go ahead. If not, you should still be prepared to handle most communication over the phone if you find a buyer that you like. You will have options, so don't be in a rush to sell. Trust me on this—every time I've sold an old iPhone on Craigslist, I've received at least five offers in the first few minutes. The last time I sold, I posted at 2:00 AM and ended up with around 40 inquiries by morning. When you have a product like this, you're in a good position to pick your buyer. You want to try and pick someone you think you'll get along with. It'll be a better experience for both of you, plus they're more likely to buy from you if they like you. Even buyers you're going to like will most likely email you with questions you've already answered in the listing. Even if you find this frustrating, don't let that slip into your reply. Often buyers did read the listing but want to hear directly from you to them that your iPhone's in good condition. The most important thing is that you're honest about the condition of the phone. If there is any cosmetic damage that you know of, no matter how minor, tell them. You do not have to include it in the listing but tell them if they ask. Minor cosmetic damage can be hard to describe or even photograph, and it's best to just say that. Let them know that you want to show them. This makes you honest and encourages them to come see the iPhone in person. When you're communicating over the phone or via email, the buyer has to use his or her imagination to decide what the damage looks like. You can be sure that what they imagine is the worst-case scenario. If they come to look at the phone, it will undoubtedly look better in person than it did in their head. That is, of course, if you've been honest with them. When the actual sale takes place, it's always prudent to count the money. Don't worry about offending the buyer—they should expect you to do this. They'd do this themselves if they were in your shoes. There are nice ways to ask, too. Saying "do you mind if I count it?" allows them to give you permission—which they always will—so there's no real tension in that moment. Once you've made the exchange, you're all set. You've just paid for your iPhone upgrade and maybe even made a little money in the process. This is just one strategy for one product that's always worked for me. Later in the week we'll take a look at the best ways to sell just about any gadget. If you've got any great strategies for getting a good resale price on your stuff, share 'em in the comments! Share this:

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