Verizon iPhoneVerizon is allowing some AT&T customers to trade in their iPhones for credit when they buy a new Verizon iPhone 4 and sign up for a two-year contract, although the trade-in value isn't as much as they'd get by selling their old phones on the secondary market.

A quick glance at Gazelle.com, where used iPhones hit a premium price on Jan. 12 after the announcement that Verizon was selling iPhones, showed on Thursday night that various iPhones in excellent condition could be sold on Gazelle for $15 to $80 more than what Verizon is offering in credit toward a new phone.The Gazelle prices dropped from what they were on Jan. 12, except for the iPhone 4 16GB, which went up from $345 to $360 -- or $80 more than the $280 Verizon is offering.

A $325 early termination fee, or ETF, will eat all or most of the savings. You can't get out of a phone contract with AT&T or anyone else without giving some blood. And if Verizon is only offering trade-in credit, that $325 fee, or whatever's left to pay on your contract, must still come out of your pocket.

According to MacRumors.com, Verizon has offered a Feb. 3 pre-sale to its corporate customers who want an iPhone 4. Everyone else has to wait until the Feb. 10 public launch date.

The website didn't know if the trade-in deal for AT&T customers extended to non-corporate account customers. If it does, it's not a deal compared to selling your own phone for cash, although it does take a lot of headache out of having to do that transaction. It's a lot easier to walk into a Verizon store and trade in an old iPhone for a new one. The trade value is better than Verizon's regular trade-in program, according to MacRumors.

Here are the trade-in prices Verizon is offering, followed by the latest price at Gazelle.com for the same phone in excellent condition:
  • iPhone 2G - 16GB: $60; $80 at Gazelle
  • iPhone 3G - 16GB: $105; $120
  • iPhone 3Gs 32GB: $160; $180
  • iPhone 4- 16GB: $280; $360
  • iPhone 4 - 32GB: $360; $420
Other secondary buyers of iPhones include: EcoSquid, which researches many recyclers for the best price; and NextWorth, which on Thursday night was offering $323.50 for a "like new" iPhone 4 16GB.

Aaron Crowe is a freelance journalist in the San Francisco Bay Area.

Increase your money and finance knowledge from home

Banking Services 101

Understand your bank's services, and how to get the most from them

View Course »

How much house can I afford

Home buying 101, evaluating one of your most important financial decisions.

View Course »

Add a Comment

*0 / 3000 Character Maximum