Pros and cons of getting a refurbished phone

If you want an all-singing, all-dancing top model phone, then you're going to have to pay the price.

That's why most of us don't buy handsets outright, we get them via lengthy pay-monthly contracts – but don't assume that means you're getting anything for free.

The better the phone, the more you'll pay over the contract term. Because if there is no such thing as a free lunch, there's definitely no such thing as a free £1,000+ smartphone.

But what if you could have a phone that's new to you for much less?

Buying a refurbished phone can dramatically cut the cost of your new handset or your new contract. But you may be wondering: will the phone be any good?

What is a refurbished phone?

A refurbished phone is not like a normal second-hand phone. It may have been returned by a customer, which the manufacturer has then repaired (if there was a fault) and sold on as a refurb.

There's a number of reasons why a customer might've returned a phone. It might have had a fault, or perhaps it's an older handset. The customer may have sold it back to the retailer or phone company so they can upgrade to a newer model. Or if you're really lucky, they may simply have changed their mind and returned it unused – in which case, you'll essentially have a brand new phone but for less.

Before it's sold on, the manufacturer or retailer will check it, repair it and ensure it is up to a certain standard. Then they will sell it to you, although probably without the standard box or accessories you get with a new handset.

Not all manufacturers sell refurbished phones, though both Apple and Samsung sell certified refurbished devices with one-year warranty. If you can't buy a refurbished handset direct from those companies, retailers will have a similarly high standard of refurbishment and should tell you if the phone is not ‘as new'. Sometimes, these handsets are referred to as 'refreshed' or 'reconditioned'.

So what are the pros and cons of a refurbished phone, and is one right for you?

Pros

• It's cheaper. A lot cheaper. A refurbished phone can save you hundreds of pounds upfront or over the lifetime of the contract
• It's been professionally checked and repaired, unlike a typical second-hand phone
• There will be a warranty period, whereas a second-hand phone from a private seller (like eBay or Gumtree) will not have a warranty. Do check the warranty period, though
• It's more affordable if you want to buy the phone outright and use a more flexible and affordable SIM-only or pay-as-you-go contract
• As well as extensive testing, the company has to wipe any data left by the previous owner or risk falling foul of the Data Protection Act
• Think of it as an environmentally friendly option, as you'll be giving life to an old device and saving it from going to waste

Cons

• You'll have to wait for the next top model. If you want the very latest release, there are unlikely to be many on the refurbished market immediately and it may take a few months before one becomes available
• You may not be able to insure it. That said, some insurers will happily cover a refurbed phone as long as it's purchased from the manufacturer or a mobile network (rather than a private seller on eBay, for example). If you have phone insurance as part of a packaged current account then double check the small print
• The warranty will almost certainly be shorter than with a new phone
• Depending on the grade of refurbishment, the handset could have scratches, scuff marks or other cosmetic faults

Whether you want to browse phone contracts with new handsets or refurbished models, check out the best value deals using our mobile phone comparison page.

Want to sell your old phone?

If you're looking to sell your old phone to a recycler (who will then repair it and sell it on as a refurbished device, if it's in decent working condition), head to our Sell My Mobile Phone tool below: