1.  Know your seller

Check their feedback.  Is this a cellular dealer, or is it someone who changed phones and wants to get rid of their old handset?  If it was personally owned by them, what is the reason for selling? 

It seems so simple but many people overlook this most basic step.  Perhaps a phone is in the last 2 minutes of the auction, and is only $13, but who is selling this?  Have you read the entire description?

2.  Never buy without a return policy

If a phone is being sold as is you have good reason to be suspicious.   I once purchased a phone off of ebay sold "in good condition" and sold "as is." The phone had a lock code on it rendering it useless.  The seller tartly replied "I never said it was unlocked."  Most phones being sold as is should be classified as for "parts or repair. "

When inquiring about a seller's return policy, make sure you are clear on who pays for shipping to return the item, and whether or not shipping is refunded.  If a phone's shipping cost you $29.99 to have it shipped from Asia and they will not refund this, look elsewhere.

3.  CDMA -   Phones with no SIM cards

If you have T-Mobile, Nextel or Cingular you can skip this part.

Most phones which don't require SIM cards are CDMA.  This technology is used by Sprint, Verizon, US Cellular, Alltel and others.  CDMA can be difficult to activate if the serial number is tied to an account, reported lost or stolen, or has an unpaid balance. 

If the phone has an unpaid balance, the ESN, or serial number, will be released eventually for new activations.  Sprint will take the longest, often up to 6 months.  Sprint is also very easy with credit checks so most used phones from Sprint are the result of people going over their minutes and not paying their bill.  Sprint can be particularly frustrating for both sellers and buyers, since sometimes we are told they are clear for activation when the account hasn't been written off yet.

Other services such as Verizon or US Cellular take a shorter amount of time for the ESN to be clear for a new activation, sometimes only two months.  If this ESN was ever reported LOST or STOLEN it will never be free for activation!  These are phones which are blacklisted by carriers.  The only way to use this phone is to activate it in another country, so if you are sending the phone to your relatives in Guatamala then by all means proceed.  :-)

For a CDMA phone, it should say somewhere in the auction that the ESN is clear for activation.  If it doesn't say this, email the seller and ask what that number is.  You can call customer service and check for yourself.  Ask customer service to check to make sure that 1. it is not tied to an account and 2. that the phone is not on the lost / stolen database.  If the ESN cannot be guaranteed DON'T BUY.

4.  What it means if the phone is locked.

Most phones are sold for a carrier such as T-Mobile or Verizon.  The phones are locked to only work with a certain service. 

If you purchase an unlocked GSM phones, which take a SIM card, you might run into trouble when you try to set up your Internet through the device or try to download ringtones, so if these features are important to you it might be best not to purchase an unlocked device.  You also will get better reception if you use a phone that is locked for
your carrier.

Occasionally the meaning of a locked phone is that the phone has a code you need to enter after turning on the device.  People put these codes on their phones to ensure no one uses the device when it is not in their possession.  To get a lock code taken off, you will need to go to a repair center and some places will charge for this.  If it is a Nextel phone which was reported stolen, they will not help you.


5.  How to Inspect Your Phone After Receiving It In the Mail

Water Damaged?

The first thing you will want to do after receiving your phone is to open the battery.  Look at the label.  Are the letters clear, and not smudged?  Do you see any signs of water spots?  Many phones even have a small white sticker on the phone beneath the battery and the battery itself.  These stickers will turn red if the phone was exposed to water.  For many brands of phones, such as Siemens, the battery will actually appear swollen if it was exposed to water.

If the phone has water damage, it will affect a variety of things.  The battery will not keep a charge, the keypad stops working, microphones don't carry sound well and reception is affected.  Sometimes there are no signs of water damage except for the charging port, and instead of charging up the battery when plugged in, a charger will actually do the opposite and drain the battery.

If a phone was exposed to liquids, sometimes it will still work.  The problem is that most people turn on their phone right away, as it's wet, to check to make sure it still functions okay.  The combination of a phone powered on and wetness inside the device will actually burn the circuit board.  This cannot be repaired and the phone will be useless unless used for parts.  And once one thing breaks down, other parts of the phone will stop working as well.

Drop Damage:

Check the scratches on the phone.  Look for deep dents in the corners and sides which show how many times the phone was dropped.  Are there any rattling sounds as you shake it?  If the phone is a flip, open it up and bend it back a bit to see if the hinge is still well in place.

You can avoid problems with damage if the seller has detailed pictures.  With my auctions, we use a high powered digital camera to show every detail.  Pictures are taken of the front, back and under the battery. 

Other damage:

Check how many bars are on the phone for the reception. Is this less than you would normally receive for the area you are in?   Are there any cracks near the antenna, or is the antenna loose?  Do the bars go up and down to indicate an antenna signal that is not connecting properly?

6.  If you need to make a return

It is always best to be courteous with a seller in your first approach.  Always assume they weren't aware of the damaged device and that their intentions were good.  Emailing them back with something like You lied to me and I demand a refund! will only harden their resolve and you will be less likely to have a successful return.  It's best to just report the problem and ask what the procedure is for a return. 

Always inform the seller you are returning the item.  Don't just send it in the mail before finding out what the procedure will be.  If the item truly was fraudulently described in the listing, and they are refusing your return, you can file with ebay or paypal.  When paying with paypal, you have the option of being covered by their Buyer Protection Policy and this makes the process easier.

In Conclusion

Buying a brand new phone is a lot like buying a brand new car.  As soon as you drive it off the lot the product you have just purchased has lost significant monetary value. 

Buying a used phone is an EXCELLENT way to save some money, and it makes far more economic sense to buy a used phone than a new one.  The trick is to know how to buy to make sure you don't get stuck with a lemon.