Why You Should Trade In Your iPhone Sooner Rather Than Later

When August rolls around, the rule for anyone in the Apple ecosystem is simple: Don't buy a new iPhone. The next generation will be announced the following month, and it will usually cost the same as the previous model.

But I'm breaking that rule and trading in my iPhone before the new one comes out. Some people may think I'm crazy, but here's why.

Timing Matters When Trading In

When a new iPhone is announced, previous generations usually drop in value . The newer model lowers demand for older devices, and the phone's age can signal wear and tear.

For example, an iPhone 15 Pro Max currently has a trade-in value of $600, as long as it's in near-perfect condition based on Apple's criteria . However, that value will decrease when the iPhone 17 lineup is announced.

While August—and especially September—are the months you are told not to trade in your device, they are actually the sweet spots and can be the time you get the most second-hand value . This is because carriers and retailers compete hard to lock you into their contracts before the new phones drop.

During these times, you'll see extra incentives, promos, or higher guaranteed values for trading in your device with them. By trading in your iPhone during this window, you're acting in the last moment of your device's top value before it goes down.

For example, if you're trading in an iPhone 15, companies in August and early September will still see it as last year's flagship model. But once the new iPhones are announced, it'll be seen as an iPhone that is two generations old.

If you don't care about having the newest device and just want the best value for your current one, it's best to trade it in before the next-generation iPhone is announced and its value drops. Take advantage of the moment and get a new phone at the best price possible.

Alternatively, if you can limp by with an old device that you reserve for emergencies then you'll get more money to spend on the latest and greatest when launch day arrives.

Where You Trade In Your iPhone Will Make a Difference

Not only is it important when you trade in your iPhone, but where you trade it in is also essential. Depending on where you give in your iPhone, you will determine how much you get back for it.

Trade in With Apple

For the most straightforward method, trade in with Apple . This is especially true if you're looking to finance your new iPhone with your Apple Card , which offers no-interest monthly installment payments.

However, Apple may not offer the highest price for your iPhone and could give you the least value for the trade-in. Also, if you accept their offer, it typically comes as store credit, with no option for cash or use elsewhere.

Trade in Through a Carrier

If you want more money for your device, trading it through different carriers is often your next best option. Because carriers are highly competitive , they frequently offer aggressive promotions, such as a free phone with an upgrade or the newest model at a steep discount.

Unfortunately, it's not all sunshine and rainbows. Most carriers require you to sign a multi-year contract or installment plan when getting a new iPhone. Older or damaged devices may also be ineligible for these promotions, though that information is often buried in the fine print.

So even though carrier promotions may seem tempting, they can create headaches with all the hoops you have to jump through to get a new iPhone.

Trade In Through a Retailer

If you don't want to go through Apple or a carrier, some retailers will let you trade in your phone for value back. Depending on the retailer you go to, you'll receive different amounts of money and discounts back for your trade-in.

This process can be quick and straightforward and can be done in-store or online. It is similar to how you can trade in your device with Apple, but depending on the condition and age of your device, the payout may be better than with them.

However, the downside of doing it with a retailer is that you'll probably only get a gift card back from them, not cash. This may limit what you'll use the money for if you're not looking to get a new device or get it through them.

Although unlike Apple, these retailers offer more variety, so their gift cards can be more flexible than Apple's.

Alternatively, Sell Your iPhone Through a Resale Market

If you just want to sell your device and get cash back without being tied to a specific retailer or store, then selling your iPhone on a reseller market would be your best move. You'll arguably get the most money for your device this way, since a buyer is more likely to pay market value. However, it will depend on how much hassle you want to endure when selling your device.

Resale markets require that you take on some of the work that the retailer would typically handle. For example, if you trade in with Apple, you only have to hand over your iPhone; they take care of shipping and handling. With a resale market, you're responsible for packing it securely, paying for shipping, and sometimes including accessories like a charging cable and adapter.

Additionally, scams are a risk in resale markets. With a well-known retailer, you can trust you'll get the quoted value if everything checks out. However, with a resale market, you must be extra cautious to avoid getting scammed when selling your device.

Resale markets can be a great way to set your own price and get more money for your device, but that extra cash often comes with added obstacles—and sometimes more hassle than it's worth.

What to Do Before You Trade In

No matter the route you decide to take, the steps you should take before trading on your device are usually the same. This will help ensure that all of your information is safely removed and backed up for your next device.

First, ensure your device is backed up to a reliable secondary device or service, such as a Mac, PC, or iCloud , provided it has enough storage. This way, if something goes wrong during the trade-in process, your information will remain safe and accessible.

After backing up your device, sign out of all accounts , including iMessage, FaceTime, iCloud, and social media. This protects your privacy and ensures that the next owner won't have access to your personal information if you choose to sell. Even if you don't decide to sell and go with a retailer, carrier, or Apple, signing out of everything is still smart before giving your device in.

Once you've backed up and signed out of your accounts, fully erase your iPhone . This ensures all information, photos, apps, music, and other data are removed and the device is reset to factory settings. Double-check your device has been removed from the Find My service by logging in to your iCloud account to remove activation lock.

You should also remove the physical SIM card from your iPhone or delete the eSIM before trading in or selling it. If sold, this will protect you from the new owner setting up your old device and accidentally inheriting your cellular plan.

Regardless of your route, it's smart to back up, sign out, and reset your device to factory settings before trading in or selling. This protects your private information and provides peace of mind, knowing the device is no longer connected to you and all your data is safely backed up.

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Having the newest iPhone on the market feels great, but that's not everyone's priority. If you care more about maximizing your trade-in value than owning the latest model, the usual August rule of waiting to buy a new iPhone may not apply.

As cellphones change less each year—aside from camera improvements and faster chips—opting for a generation older than the newest model doesn't feel as much of a step back as it once did. You can see this with the iPhone 16e, with many suggesting the iPhone 15 Pro Max offers similar value for roughly the same price.

Whether you trade in your iPhone a month before the new model is announced or the day before, maximizing your trade-in is an option more people are considering. With prices reportedly rising for the latest models, getting the most back from your old device has never been more critical.