My wife is a manager at a T-Mobile call center, and the uproar over "buy a phone at full price" when they started that a few years ago was insane because people didn't realize that the providers subsidized the price of the phone. They really thought an iPhone cost $200. My mother couldn't grasp the concept no matter how many times we explained it. Now T-Mobile is going away from paying full price for a phone and trying to get you to lease a phone for a monthly fee, but you can trade in without worrying about having negative equity between a payoff amount and trade-in value. I'll go that route, because it's not like these phones are made to last for more than a few years.