Last month we revealed that people are saving hundreds of pounds a year by buying Sim-only mobile-phone handsets from lesser-known brands. Another option for those who want an iPhone or Android smartphone, but don’t want to pay an average of £500, is to go for a refurbished phone that looks and works as good as new.
Refurbished phones have been used but, unlike second-hand phones, they have been inspected, tested and repaired, if necessary, by the manufacturer to meet their original specifications.
They are often nearly new and are sold boxed with new accessories, such as a charger, USB cable and earphones. Phones that have been refurbished are given a grade by retailers — typically A, B or C — in accordance with their physical and cosmetic condition. Some manufacturers and retailers also offer a year’s warranty.
Sainsbury’s is selling a Samsung Galaxy Note 4 for £300 in grade A condition; Carphone Warehouse has a new Sim-free version for £449.99. Tired of being tied into a contract, I went Sim-free last year. I bought a refurbished iPhone 5 from Tesco. The handset, which cost about £250, came in Apple packaging and included a new charger and headphones. It also had a year’s warranty.
If you go Sim-free, don’t forget to research the best phone contract. Check your past usage by calling your network provider or look at your bills online so you can find the best deals to match. If you have been with your network provider for a while, they will probably be keen to keep you, so take advantage of this and haggle.
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My existing phone contract with O2 was coming to an end and I was planning to switch to giffgaff, which had a better deal.
When I called to cancel my contract, however, O2 offered me a loyalty discount, so I stayed and now pay £16 a month with unlimited calls and text messages and 3GB of data (originally £20 a month).