The iPhone Contract Con: How your phone contract costs you more

If you’re reading this, you might be partway through a 36-month phone contract, reading this on your iPhone that you thought was good value by paying monthly.

The truth is that you’ve been sold a lie. The major mobile phone networks like EE, Vodafone, Three and O2 tell us that getting an iPhone on a contract is the most affordable way. They throw in extras, like the Netflix subscription you already have, or EU roaming, which used to be included, all for a “low” monthly payment.

It may seem like an attractive offer at the time, but when it comes down to the brass tax, you’re likely overpaying by up to £500.

Yes, you’ll likely be offered a “free” trade-in upgrade after 24-months, but it’s too good to be true as mobile phone networks are actively making money from you.

In this blog, we’ll break down why long iPhone contracts are a con, and how you can save money by buying a refurbished iPhone through MacFinder using PayPal Credit.

The 36-month trap

Back in the day, and we’re showing our age now, iPhone contracts were 12-months, then 18-months, before creeping up to 24-months. Now, in 2026, the standard iPhone contract through a mainstream mobile phone network is a staggering 36-months.

That’s three years of overpaying.

For example, if you take a 36-month phone contract, you’ll typically overpay for your iPhone by around £300. If you upgrade at the 24-month point, you lose more than £500 of its value.

If you opt for a 24-month phone contract, you could be paying an additional £500 vs. buying a phone outright. If you choose to upgrade after just 12-months, you will lose a whopping £700 of its value by handing your phone back to them, only for the 24-month contract to restart.

To put it into perspective, a brand new iPhone 17 Pro Max directly from Apple would cost you nearly £300 less at £1099, depending on the exact model.

All prices are current as of 9/2/2026

The 24-month trade-in con

Most UK mobile phone networks will allow you to upgrade your iPhone after 24-months, which is always tempting.

It sounds like a great deal, right? You can get the latest iPhone before your contract is up… exciting!

Wrong choice. This is the mobile phone network’s opportunity to make even more money from you.

After two years, your iPhone still carries significant value. Of course, all technology depreciates somewhat, so your iPhone is likely worth less than the remaining 12-months of phone contract payments, but it’s still a sellable device.

Not only will your mobile phone network profit from selling a perfectly working iPhone for £500+, but trading in at the 24-month mark will tie you into a further 36-months, likely at an even higher price.

By continuing this cycle of upgrading at 24-months, you will never actually own your iPhone; you’re basically just renting it, at a premium.

Take a look at our contract cost calculator to see how much an iPhone contract might really cost you:

Beat the major phone networks – buy a refurbished iPhone

By buying a refurbished iPhone through MacFinder, you can wave goodbye to the mainstream phone networks that are profiteering from you.

There are two options when it comes to buying a refurbished iPhone that could save you hundreds of pounds:

1. Trade in your old iPhone

One way to save money on a like-new working condition refurbished iPhone of the latest model is to trade in your old device. At MacFinder, you can sell your iPhone to us for trade-in value against a refurbished iPhone, at a much lower price than a brand new one.

2. Buy with PayPal Credit

Whilst buying a refurbished iPhone from MacFinder is more affordable than buying brand new, saving you hundreds of pounds. We appreciate that whilst you may not be able to cough up £1000 up front, which is why we offer PayPal Credit.

0% interest for up to 24 months

With PayPal Credit, you can spread the cost of a refurbished iPhone over 24 months, completely interest-free when you spend over £99, whilst also avoiding annual interest increases every April.

This means you’ll know exactly what your iPhone is costing you from day one to day 730!

Ready to break the phone contract cycle?

At MacFinder, we stock a wide range of refurbished iPhones to suit all budgets, and when you buy from us, you’ll have full ownership from day one.

All of our refurbished iPhones are unlocked to work with any UK mobile phone network, giving you the freedom to pick a sim-only phone plan from any network of your choice.

Browse our range of refurbished iPhones and start saving money today.