The best places to buy phones are directly from major carriers, third-party retailers, and certified refurbishers. Buying from a carrier often bundles device payments with a plan, but you can save $150–$300 by choosing a budget provider or an unlocked phone. Always compare total cost over 24 months.
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Where you buy your phone directly affects your monthly plan cost. Major carrier stores often offer device payment plans that spread the cost over 24 or 36 months, but they tie you to a postpaid contract with higher monthly fees — averaging $75–$100 per line for unlimited data in 2026, according to the FCC's Mobile Wireless Competition Report. Third-party retailers like large electronics chains or online marketplaces may sell phones at a discount, but you'll need to bring your own plan. Buying from a carrier store is convenient, but you may pay $200–$400 more over two years compared to buying an unlocked phone and pairing it with a budget provider.
Buying Unlocked Phones for Plan Flexibility
An unlocked phone can be used with any carrier or provider, giving you full control over your plan choice. You can buy unlocked directly from the manufacturer, major retailers, or certified refurbishers. Unlocked phones typically cost the full retail price upfront — a premium smartphone averages $900–$1,100 — but you avoid carrier financing fees and can choose a cheaper prepaid plan, saving $30–$50 per month. Over two years, that's $720–$1,200 in savings. Many unlocked models also support both major network technologies, making switching easy.
Prepaid and Budget Provider Options
Prepaid plans from budget providers often have lower monthly costs — $25–$50 per line for unlimited data — but they usually require you to bring your own phone. You can buy a compatible device from the provider's store or online, or purchase a certified pre-owned phone from a third party. Budget providers may also sell phones at a discount when you activate a plan, but these are often basic models. The average prepaid user saves $300–$500 per year compared to postpaid, per the FCC's 2025 report.
Refurbished and Certified Pre-Owned Devices
Buying a refurbished phone can cut upfront costs by 40–60%. Certified pre-owned devices from major retailers or the manufacturer's own program often come with a warranty and are tested to work on all networks. This option pairs well with prepaid or budget plans. For example, a premium smartphone that retails for $1,000 might cost only $400–$500 refurbished. Combined with a $35/month prepaid plan, your total cost over two years is about $1,240, versus $2,800 for a new phone on a postpaid plan.
| Purchase Option | Upfront Cost | Monthly Plan (24 mo) | Total 2-Year Cost |
|---|---|---|---|
| New from carrier (postpaid) | $0–$200 (financed) | $80 | $1,920–$2,120 |
| Unlocked new + prepaid | $1,000 | $35 | $1,840 |
| Refurbished + prepaid | $500 | $35 | $1,340 |
How to Compare Total Cost of Ownership
To find the best value, calculate total cost over 24 months: upfront phone price + monthly plan fees + taxes and fees. Postpaid plans often add $5–$10 per line in regulatory and administrative fees. Prepaid plans typically include taxes in the advertised price. Use these steps:
- List the phone's upfront price (including any financing interest).
- Add 24 months of plan charges (use the average for your data needs).
- Include estimated taxes and surcharges (state and local rates vary, average 8–12% of plan cost per Tax Foundation).
- Subtract any trade-in or promotional discounts.
The lowest total cost often comes from buying a refurbished or unlocked phone and pairing it with a budget prepaid plan. Always check the carrier's coverage in your area before committing.