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Top tips for selling your old mobile phone | Top tips for selling your old mobile phone |
(about 14 hours later) | |
By Mike Wendling Reporter, Money Box | By Mike Wendling Reporter, Money Box |
Millions of old mobile phones languish in cupboards and drawers across the UK, and there are dozens of websites that will offer you cash for old handsets - but are you getting a good deal? Radio 4's Money Box reporter Mike Wendling investigates. | Millions of old mobile phones languish in cupboards and drawers across the UK, and there are dozens of websites that will offer you cash for old handsets - but are you getting a good deal? Radio 4's Money Box reporter Mike Wendling investigates. |
In offering money for a used, often useless phone, mobile phone 'recycling' companies - they usually sell-on rather than recycle your handset - seem to provide a near-magical service. | In offering money for a used, often useless phone, mobile phone 'recycling' companies - they usually sell-on rather than recycle your handset - seem to provide a near-magical service. |
The process seems simple. Customers enter the make and model of their phone, its condition, and some personal details into a website. | The process seems simple. Customers enter the make and model of their phone, its condition, and some personal details into a website. |
A quote appears and the company sends out a freepost envelope. | A quote appears and the company sends out a freepost envelope. |
Pop the phone in the envelope, send it back to the company and within a few days the money arrives via cheque or in your bank account. | Pop the phone in the envelope, send it back to the company and within a few days the money arrives via cheque or in your bank account. |
At least, that is how it is supposed to work. | At least, that is how it is supposed to work. |
But if customers are not careful they can end up with a bad deal - or nothing at all. | But if customers are not careful they can end up with a bad deal - or nothing at all. |
To test the market I searched online and found what appeared to be a good offer: £65 for my old phone - a handset I had bought three years ago. | To test the market I searched online and found what appeared to be a good offer: £65 for my old phone - a handset I had bought three years ago. |
I posted it and waited for the bank transfer. | I posted it and waited for the bank transfer. |
But after Cash4Phones examined my used phone, I received an email informing me that "excessive wear and tear" meant the company could only give me £39.33. | But after Cash4Phones examined my used phone, I received an email informing me that "excessive wear and tear" meant the company could only give me £39.33. |
I had five days to accept. | I had five days to accept. |
After I complained - the phone is virtually free of scratches and the screen is intact - the company upped its offer to the original price. | After I complained - the phone is virtually free of scratches and the screen is intact - the company upped its offer to the original price. |
Best deal | Best deal |
On one popular phone recycling forum, we found close to a hundred similar complaints about Cash4Phones offering less than its original quote because of "wear and tear" - far more than nearly any other company. | On one popular phone recycling forum, we found close to a hundred similar complaints about Cash4Phones offering less than its original quote because of "wear and tear" - far more than nearly any other company. |
Most of the complaints appeared to be resolved on the forum after Cash4Phones increased its offer, and the company says online forums are skewed towards people who are dissatisfied. | Most of the complaints appeared to be resolved on the forum after Cash4Phones increased its offer, and the company says online forums are skewed towards people who are dissatisfied. |
It says it has many more customers who are perfectly happy with their service and who do not complain. | It says it has many more customers who are perfectly happy with their service and who do not complain. |
But finding that a recycling company offers less than its original quote once it receives the phone is common. | But finding that a recycling company offers less than its original quote once it receives the phone is common. |
Brian Turner of Techwatch.co.uk says a significant proportion of phones offered to recycling companies get lower offers when the company cites some kind of damage. | |
One study done by a recycling company two years ago found that about 20% of phones were marked down in this way, Mr Taylor says. | One study done by a recycling company two years ago found that about 20% of phones were marked down in this way, Mr Taylor says. |
To find out if I could get a better deal for my phone, I had it posted back from Cash4Phones - paying a £4.95 shipping fee - and I touted it around various pawn shops and second hand phone dealers in west London. | To find out if I could get a better deal for my phone, I had it posted back from Cash4Phones - paying a £4.95 shipping fee - and I touted it around various pawn shops and second hand phone dealers in west London. |
The most common offer was £50 - several businesses offered me cash with only a cursory inspection of the phone. | The most common offer was £50 - several businesses offered me cash with only a cursory inspection of the phone. |
But the best deal came from CeX, a firm with both High Street shops and a website - webuy.com. | But the best deal came from CeX, a firm with both High Street shops and a website - webuy.com. |
Their price? £61, plus another £25 if I could find the charger. | Their price? £61, plus another £25 if I could find the charger. |
Millions of unwanted mobiles | Millions of unwanted mobiles |
Online auctions might be a way to get even more money. | Online auctions might be a way to get even more money. |
Judging by recent sales on eBay, I might net more by selling my phone this way - although eBay's listing fees would eat into the profits. | Judging by recent sales on eBay, I might net more by selling my phone this way - although eBay's listing fees would eat into the profits. |
With increasingly clever smartphones urging more and more mobile users to upgrade their still-functioning phones for a more up-to-date model, the phone recycling industry has been booming. | With increasingly clever smartphones urging more and more mobile users to upgrade their still-functioning phones for a more up-to-date model, the phone recycling industry has been booming. |
Keir McConomy, managing director of mobile phone recycling site SellMyMobile.com, estimates there are about 70 million unused mobiles hiding in cupboards and drawers in the UK. | Keir McConomy, managing director of mobile phone recycling site SellMyMobile.com, estimates there are about 70 million unused mobiles hiding in cupboards and drawers in the UK. |
The average value of a phone traded in through SellMyMobile last month was £89. | The average value of a phone traded in through SellMyMobile last month was £89. |
"It is important for customers to make sure they deal with a trusted company, because they're sending a valuable piece of equipment," he told Radio 4's Money Box. | "It is important for customers to make sure they deal with a trusted company, because they're sending a valuable piece of equipment," he told Radio 4's Money Box. |
"It can be a problem because people may just see a website offering them a price. | "It can be a problem because people may just see a website offering them a price. |
"If they are not using a comparison site or doing their own research, it's not always clear which are the good quality companies." | "If they are not using a comparison site or doing their own research, it's not always clear which are the good quality companies." |
The vagaries of the postal system can add a further risk. | The vagaries of the postal system can add a further risk. |
"We would always advise people not to use the recycling company's freepost address, but to send their phone special delivery - that way they have proof that it's delivered, and it's insured and tracked." | "We would always advise people not to use the recycling company's freepost address, but to send their phone special delivery - that way they have proof that it's delivered, and it's insured and tracked." |
Scam companies | Scam companies |
As our unscientific test found, prices and offers can vary, but phone sellers have also been stung by outright scams. | As our unscientific test found, prices and offers can vary, but phone sellers have also been stung by outright scams. |
Money Box spoke to customers of two related sites, Fonecraze and Skyphones, which apparently stopped trading last year. | Money Box spoke to customers of two related sites, Fonecraze and Skyphones, which apparently stopped trading last year. |
Several customers did not get their phones back - nor did they get any money in return. | Several customers did not get their phones back - nor did they get any money in return. |
The companies were formerly based in Eltham in south east London. | The companies were formerly based in Eltham in south east London. |
Greenwich Council Trading Standards officers said they had been investigating the websites but before any action could be taken, the companies disappeared from offices on a trading estate. | Greenwich Council Trading Standards officers said they had been investigating the websites but before any action could be taken, the companies disappeared from offices on a trading estate. |
Attempts by Money Box to contact the company directors were also unsuccessful. | Attempts by Money Box to contact the company directors were also unsuccessful. |
For the altruistic, there is the option of donating old phones to charity. | For the altruistic, there is the option of donating old phones to charity. |
Some charities can actually put the phones to use, while most will generally go through similar channels as consumers to sell the handsets for cash. | Some charities can actually put the phones to use, while most will generally go through similar channels as consumers to sell the handsets for cash. |
Whichever option you choose, industry experts advise sellers of mobile phones to take the same precautions as online buyers - read online reviews, look for personal recommendations and take the time to shop around for the best price. | Whichever option you choose, industry experts advise sellers of mobile phones to take the same precautions as online buyers - read online reviews, look for personal recommendations and take the time to shop around for the best price. |
Money Box is on BBC Radio 4 on Saturday, 21 January at 12:00 GMT and repeated on Sunday, 22 January at 21:00 GMT. Listen via the Radio 4 website or download the Money Box podcast. | Money Box is on BBC Radio 4 on Saturday, 21 January at 12:00 GMT and repeated on Sunday, 22 January at 21:00 GMT. Listen via the Radio 4 website or download the Money Box podcast. |
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