Advertiser Disclosure

6 Ways to Save Money on an iPhone

You'll save by buying used, picking the right payment plan and knowing the best times to find a promotion.
Sept. 19, 2018
Bills, Cell Phones, Managing Money, Personal Finance, Utilities
At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

IPhones don’t come cheap. The iPhone XS Max, Apple’s most expensive phone to date, starts at $1,099.

But if you’re on a tight budget, there are ways you can save money on an iPhone. Here are a few tips.

1. Choose a smaller phone

Larger iPhones and those with more storage capacity are more expensive. You can save considerably by opting for the basic model over a beefed-up version.

A new iPhone XS with 64GB of storage retails for $999 from Apple, while the 256GB XS is $150 more, at $1,149. You’ll save $100 by picking the 64GB iPhone XS over the larger iPhone XS Max with a longer battery life and the same storage capacity, which is priced at $1,099.

Need help starting your budget?

NerdWallet breaks down your spending and shows you ways to save.

2. Buy an older model

One of the best times to buy an iPhone is in September, when new models are typically announced and older ones are discounted. After the iPhone XS, XS Max and iPhone XR announcement in September 2018, Apple dropped the price of the previous generation iPhone 8 from $699 to $599.

Used technology marketplaces tend to get an influx of old iPhones around new releases, which drives prices down.

3. Wait for a promotion

Cell phone carriers and electronics retailers offer some of their best iPhone deals during the holiday shopping season, particularly around Black Friday, the day after Thanksgiving. For example, Best Buy’s 2017 Black Friday sale included the iPhone 8 and iPhone 8 Plus for up to $200 off with qualified activation on select networks.

Cell phone carriers and electronics retailers offer some of their best iPhone deals around Black Friday.

Fall is a prime time to find savings, but keep your eye out for promotions year-round.

» MORE: Keep track of your money with NerdWallet

4. Pick a payment plan

Purchasing a phone, rather than leasing, gives you the ability to eventually sell or trade it and put the value toward a new phone. But if you can’t afford the full cost, or don’t want to cough up the entire amount upfront, consider paying for your iPhone in monthly installments. Apple and every major carrier have their own monthly payment plans. Some agreements allow you to upgrade to a new phone after a certain amount of time or once you’ve paid off a specific percentage of the phone’s sale price.

Apple’s iPhone Upgrade Program spreads out the cost of the device and AppleCare+ coverage — which includes repairs and software support — over 24 months with 0% interest and lets you turn in your existing phone and upgrade to a new one after 12 payments. Monthly payments for the iPhone XS start at $49.91, so after 12 payments, you’ll have paid $598.92 — that’s about $400 less than the phone’s retail price.

The AT&T Next Every Year plan doesn’t include insurance, but it offers a lower monthly charge of $41.67 for the 64GB iPhone XS and you’re eligible to upgrade after paying 50% of the cost, or $499.99. With both plans, your device must be in good physical and working condition to meet upgrade requirements.

An upgrade plan may be best if you get a new iPhone every year without fail.

An upgrade plan may be best if you get a new iPhone every year without fail. Shop around and pick the carrier or payment plan that best suits your needs.

» MORE: The best cell phone plans

5. Buy a pre-owned iPhone

Used or refurbished phones often have a stigma attached, but when purchased from a trustworthy seller, they’re actually reliable — and affordable — options.

“Used doesn’t necessarily mean lesser quality of function. A well-cared-for phone that has a previous owner will have a lot of life left,” says Ben Edwards, CEO of Swappa, a marketplace for used technology.

A well-cared-for phone that has a previous owner will have a lot of life left.

Ben Edwards, CEO of Swappa

At the time of this writing, we spotted an unlocked 256GB iPhone 8 Plus in excellent condition for $719 on Gazelle. The same model sells for $849 new at Apple. If you can handle one with a few minor imperfections, like scratches or dents, you’ll likely save more. Before you buy a device from a third-party reseller, make sure it’s compatible with your carrier and isn’t broken, stolen or still under contract. Look for websites like Swappa that perform a serial number, or ESN, check on phones or require sellers to upload verification photos. You can also run a check yourself, using tools like CTIA’s Stolen Phone Checker.

6. Sell or trade in your old phone

If you don’t need your previous device as a backup, sell it or trade it in. You might end up with a few hundred dollars in cash, gift cards or credit that you can apply toward a new iPhone. You’ll typically get more money for selling a phone rather than trading it in, Edwards says, but it may be more of a hassle.

Estimate the resale or trade-in value of your device through Apple, your carrier or trusted sites like Swappa and Gazelle.

About the author