Can I Sell a Contract Phone​?

Do you want to sell your old phone and upgrade to a newer model? It’s a good idea, but before trading it in, it’s best to check your contract terms. Most people miss this step and face troubles later on.

“Can I sell a contract phone?”, is a very common query among used phone sellers. Is it okay to sell a device that’s still under contract? Well, the answer isn’t that straightforward. In this blog, we’ll decode the complexities of selling such phones and what you can do about it.

When you purchase a smartphone through a fixed-term agreement with a carrier, it’s known as a contract phone. In this arrangement, you receive a new device and agree to pay monthly fees over a specified period. These contracts typically include allowances for calls, texts, and data.

Contract phones can be beneficial as they let you buy the newest phones without paying the full price upfront. However, they can also be limiting as you need to stay with the provider and make regular payments for a set period. Understanding your options for selling a contract phone is key if you wish to sell your device before the contract ends.

Before you sell a contract phone, read your agreement’s terms and conditions thoroughly. Some contracts do not allow you to sell the phone before the end date. Others may permit this only if all outstanding dues have been paid.

If you want to end the contract before its end date, you’ll have to pay a termination fee. The amount may vary depending on your contract terms. Failing to pay the dues can affect your credit score as well. Plus, the new owner may face trouble in activating the phone if it’s still linked to your carrier.

You can contact your phone company to ask if they can lower your early termination fees or provide alternative options. Some companies offer flexible plans or special arrangements for ending contracts early. Exploring these choices may help reduce your overall costs.

If you’re going ahead with the sale, you’ll need to take some steps. This can help you sell the device for a better price while attracting more buyers. Proper preparation increases the phone’s value and makes the selling process smoother. Have a look at what to do before you sell a contract phone:

• Your data should be securely backed up and deleted from the device
• Conduct a factory reset
• Clean the phone properly and inspect if there is any damage
• Gather all original accessories and packaging
• Make sure the phone is unlocked

Many people who ask, “Can I sell a contract phone?”, also want to know if they can transfer their contract to someone else. This option can help you avoid complications such as early termination fees and credit checks for the new owner. Transferring your contract phone is known as an assumption of liability transfer.

This process lets the new owner take over all contract obligations. Not all carriers allow contract transfers, but if yours does, it can be a good way to end your contract without extra fees. Therefore, always check your contract carefully before making any decisions.

It’s important to be prepared and understand the process before selling a contract phone. Here’s a concise checklist recommended by our experts:

• Contract or Payment Plan: Review the terms and conditions of your agreement with the phone carrier. Identify any restrictions or penalties for selling the phone before you complete all payments.
• Outstanding Balance: If you are on a financing plan, you may still owe part of the phone’s total cost. You must pay off this balance first before you can transfer ownership to the buyer.
• Resale Value: Check your phone’s market value by considering its age, condition and included accessories. Compare similar models to determine a fair selling price.
• Transparency with Buyers: Be honest with potential buyers about the contract, and if any outstanding amount must be settled before transferring ownership. This builds trust and avoids misunderstandings.
• Carrier Unlocking: If your phone only works with one carrier, you may need to unlock it before selling. Contact your network provider to learn about the process and any associated fees.
• Transfer Ownership: After you find a buyer, pay off any outstanding amount. Then, transfer ownership to the buyer and give them all the necessary documents.

We hope this blog has helped you understand the key points of selling a phone still under contract. Weigh your options carefully before deciding whether to sell now or wait until your term ends. When you’re ready to upgrade, Mobile Guru is here to make the process simple:

• Ensure all outstanding dues are paid
• Get a ‘No Dues Certificate’ from the network provider
• Our team will inspect your device and provide an instant, fair valuation
• Receive same-day payment for your device

To learn more about how and if you can sell a contract phone in Melbourne, get in touch with us. Call us on 1300 362 017 or visit our store. You can also email us your queries at hello@mobileguru.com.au. Our team will be happy to assist!