(Credit: Alisa Stern; rvlsoft, Bagel Studio, Viacheslav Lukashov, Mega Pixel / Shutterstock.com)
Phones have become major investments. Sure, there are some solid cost-friendly options out there, but factor in taxes and accessories, and you're often looking at spending anywhere from a few hundred dollars to more than a grand. And that doesn't even include a monthly service plan!
The good news is, it’s still possible to get a good deal on a new phone. Follow our tips to get the best possible price on your next mobile device.
Timing Is Key
A manufacturer’s suggested retail price (MSRP) is just that—a suggestion. Phone prices fluctuate greatly depending on the time of year, product life cycle, and planned promotions. Give yourself time to shop around and monitor prices, and you might be able to score a flagship device at a midrange price.
Once you find the right phone at the right price, you’ll want to act fast, especially if the offer is through a carrier. Flash promotions and sales can end quickly (sometimes in as little as a few hours!), and if you miss one, you’ll probably be waiting at least a few weeks before you find a similar deal. Also keep in mind that most carrier promotions tend to launch early in the week. Most importantly, manufacturer discounts are often most aggressive when devices first hit the market.
This brings us to our next tip...
Do Some Holiday Shopping for Yourself
Shopping for a phone around the holidays can score big wins for your wallet. This doesn’t mean you have to wait until Black Friday, though. Most manufacturers and carriers offer some sort of promotion for nearly every US holiday (4th of July, Labor Day) as well non-holidays (Amazon Prime Day, Apple's Back to School Promotion).
(Cautiously) Consider Carrier Promotions
Buying from a carrier can have its benefits. For instance, some carriers offer promotions where new subscribers get a prepaid gift card after you've had service for a certain number of months. Others offer rebates that are credited to your account over 18 to 36 months. It's important to read the terms and conditions of any promotion to ensure it’s a commitment you’re comfortable with.
Buy Unlocked
Although buying an unlocked phone may not save you money at checkout if you buy it outright, it can be a better value in the long run. These days, you can find unlocked devices on phone manufacturers' sites like Google or Samsung in conjunction with finance options that make the cost easier to bear.
Further, unlocked phones give you the freedom to shop around and move between carriers for the best deal when needed. You can also resell an unlocked phone at any time if you want to upgrade.
Shop Online
Although most carrier and big-box shops have the same pricing as you’ll find online, that doesn’t mean you’re getting the best deal. Carrier websites, as well as Best Buy's and manufacturer websites, frequently have promotions for discounted activation fees and promotional gift cards you won’t find in stores. These generally earn you savings in the neighborhood of $50 to $100.
Go Midrange or Get Last Year's Flagship
You can spend between $400 and $600 on a brand-new midrange phone with good cameras and great performance, but some features may be missing. For the same price, you might be able to get one of last year's flagship models, which offer excellent cameras, faster performance, tougher materials, and stronger dust- and water-resistance ratings.
When new phones are released, older models are usually discounted by $100 or more, and carriers frequently offer the same, or similar, promotions on these phones as they do on the new versions.
Another bonus of getting older flagships? There is usually a wider range of accessories like cases or screen protectors that are also on sale.
Refurbished Phones Can Save You Big Bucks
There's a big difference between used and refurbished (or reconditioned) phones. Used phones are typically sold as-is from private sellers. Refurbished phones, on the other hand, often come from the original manufacturer, usually look brand new, have a fresh battery, and come with some form of warranty. If you decide to purchase a refurbished phone, check the model number to make sure it's a US model with the appropriate band support for your carrier. If the phone isn't approved by your carrier—even if it's a foreign variant of a popular US phone—it may have trouble connecting to the network or making phone calls, so this is key.
Also be sure to shop from trustworthy sources (such as Apple, Best Buy, Gazelle, Samsung, etc.) so you can be certain the phone is actually reconditioned and is not blacklisted.
Trade In Your Old Phone
This one is easy. Look for guaranteed trade-in promotions from carriers or manufacturers and compare them with prices at Best Buy and Gazelle. Due to increased competition, some carriers have instituted guaranteed trade-in values for phones in any condition. However, those deals can be fleeting, so act quickly—and always read the fine print.
(Credit: Stock)Dedicated trade-in sites aren't quite as seamless as swapping your old phone out to the same store where you're picking up your new one, but they often pay more money. Just be sure to give an accurate assessment of the quality of your phone for the best estimate. Samsung, in particular, is good about accepting trade-ins, especially old iPhones and Pixels.
Don’t Forget MVNOs
The Big Three carriers may have a stranglehold on most US phone buyers, but don’t count out smaller players like Google Fi, Cricket Wireless, Metro By T-Mobile, and others. Smaller carriers are just as keen to sign up new customers and will often offer discounts on new phones at times when there are no discounts from AT&T, T-Mobile, or Verizon.
And that goes hand-in-hand with …
The Best Cheap Phone Plans
Even the most expensive phone is basically just a fancy brick if it doesn't have service. There are a lot of options out there beyond AT&T, T-Mobile, and Verizon, and they can save you a lot of money. Once you find the right phone, head over to our story on the best cheap phone plans to find the right cost-effective service for you.
Steve Winkelman and Sascha Segan contributed to this report.