For most of us, our mobile phone is an essential part of day-to-day life. But buying a new handset can be particularly expensive, and may be unaffordable when costs are soaring. 

You may want to buy a new handset outright and pair it with a cheap SIM-only deal to reduce your monthly costs, for example, compared to signing up to a standard contract. Fortunately, there are simple ways to bring down the cost of a handset by hundreds of pounds. 

Here’s our round-up of some of the best ways you can save on the cost of a mobile phone.

Buy a refurbished phone

A refurbished phone, or “refurb”, is simply one that was previously sold to another customer by a mobile phone retailer, only to be returned due to some kind of fault or the customer changing their mind. The handset will have since been repaired (if there was a defect) and restored to working order to be resold at a discounted price.

These phones are different to those sold as “used” on the secondhand market. If you’re buying a used phone, it won’t necessarily have undergone professional repairs and you’ll be buying from a private seller rather than a retailer.

Refurbished phones may not come with all of the original packaging or accessories such as chargers or headphones, but tend to go for a lot cheaper than their brand new counterparts and are typically sold with a one-year warranty.

Retailers sometimes use different ‘grades’ to distinguish refurbished phones, and they tend to fall within the following categories:

  • Grade A or “like new” applies to phones that are virtually untouched and show little to no sign of use whatsoever. These are often the handsets that were returned within the first month because the original buyer changed their mind.
  • Grade B describes phones that may have light signs of use or small scratches, but are still in good working condition.
  • Grade C applies to phones that are visibly used.
  • Grade D refers to a phone that’s clearly secondhand, and may still be broken in some way. These are usually only sold by online traders, with the recommendation that you should be prepared to do the repairs yourself.

It’s really important to check that a refurbished phone comes with a warranty, in case an old problem with the phone resurfaces or it develops a new fault. Most refurbished phones are sold with a one-year guarantee, but it’s worth checking this before buying.

While we all like to have brand new products, a refurbished phone can save you hundreds of pounds if you opt for a model that’s a year or two old, and at high grades you likely won’t be able to tell the difference. Refurbs are thoroughly tested, wiped of all previous customer data and restored to factory settings, so there are no extra steps to take on your end.

Where can I buy a refurbished phone?

You can search for refurbished phones using our mobile phone comparison tool. Simply search for the model you have in mind, and on the results page, scroll down the ‘Filters’ tab on the left. Under the ‘Condition’ section, select ‘Refurbished’ and deselect ‘New’ to show only refurbished phones. Bear in mind that you are more likely to get results for refurbished phones if you’ve chosen an older model.

Buy a basic phone

If you’re fed up with smartphones that claim to do it all and you’d be happy with a cheap, no-nonsense model that gets the job done, a so-called ‘basic’ phone may be just what you’re after. These are also known as ‘simple’ or ‘feature’ phones.

These are modelled on mobile phones from before the smartphone era, meaning they tend to be small and compact, with a push-button keypad and no touchscreen.

Simple phones are designed mainly for making calls and exchanging text messages, and little else. Certain models will come with features such as a torch, camera and specific internet services (such as Google, Facebook and WhatsApp), though these will not be as powerful as on a smartphone.

However, the lack of extra features means that these models tend to have excellent battery life, with some capable of lasting multiple days on one charge.

Do all network providers support basic phones?

One caveat around simple phones is that some of them will soon not be usable on certain providers’ networks.

While most smartphones currently operate on 4G or 5G mobile networks, most simple phones still use 2G, 3G or 4G. A higher number denotes a faster network speed, so for a simple phone, 3G will probably be sufficient for daily use, or even 2G if you do not plan to use internet services at all and only wish to call or text.

However, many providers intend to phase out their 2G and 3G connections, and some already have done so. Three no longer offers 2G or 3G connections at all, for example, and EE and Vodafone both plan to phase out 3G by the end of 2023, and 2G by the end of 2025.

On the other hand, O2 does not plan to phase either of these connections out until 2033. If you intend to buy a simple phone with 2G or 3G connectivity and not 4G, it might be worth buying a SIM card from O2, or one of the providers that runs on O2’s networks (Giffgaff, Sky, or Tesco Mobile), so that you don’t have to change provider in a year or two when the old connections are phased out.

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What are the best basic phones?

Simple phones cost hundreds of pounds less than a smartphone. Nokia produces a range of particularly cheap models, such as the Nokia 105, which costs as little as £20 from some retailers. For our top picks for basic phones, check out our article Top 10 basic phones.

Compare buying outright to signing up to a contract

Buying a phone outright and pairing this with a SIM usually works out as the cheapest option, but this isn’t always the case. Signing up to a monthly contract can sometimes be better value, particularly if you’ve chosen a new model that comes with a special deal. This could be a discount on the contract, or there may be a particular feature (such as a streaming service) included at a lower price. Do your sums and consider which is the best option for you.

Trade in or sell your old phone

Don’t just stick your old model in a drawer – trading or selling your old phone is a great way to recoup some of its value.

Companies like Apple, Samsung and Google offer up to hundreds of pounds off a new device if you trade an old phone in with them, though this all depends on the model and condition of the phone you’re trading in.

Another option is to sell your handset to a refurbisher, which could work out best if it’s faulty. Several retailers accept old phones, such as CeX, MusicMagpie and Envirofone. Alternatively, you can always turn to eBay or other online marketplaces. Sites such as SellMyMobile and Compare My Mobile can compare retailer prices and help you find the best value for your old handset.

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Compare mobile deals

If you’re considering switching your mobile phone provider, it’s worth doing plenty of research so you can be certain you’ve found the best possible deal to suit your needs. Comparison websites such as MoneySuperMarket, Uswitch and Compare the Market all enable you to compare the latest phone deals, whether you want the latest smartphone or a SIM-only deal.      

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