Buying a used cellphone? Here's what to watch out for

It’s time to replace your cellphone. Do you splurge, or believe everything old is new again and buy used?

Here’s what to consider.

Know your options:  You can buy a used cellphone from an individual or small dealer. You can also get from a retailer a refurbished phone, which has been tested, fixed and graded. They typically have warranties.

“Buying refurbished reduces risks but can raise the prices. When buying from an individual, do a face-to-face transaction as you don’t have the same fine-print assurances you’d get from a certified seller,” says Brandon Ackroyd, head of customer insight at TigerMobiles.com.

When you meet face-to-face, check that the phone works correctly and that it is not scratched or otherwise damaged.

Understand risks: Realize the device may no longer be eligible for updates, it may include non-original parts and there's a chance it could have malware, points out Jason Glassberg, co-founder of Casaba Security, a so-called "ethical hacking" firm in Redmond, Washington.

If you’re buying used, find out if it has been "carrier unlocked" and can be used with any carrier. “With Apple, you have to ensure that the Activation Lock (iCloud Lock) is not activated. If it is,  you will not be able to use the phone and Apple cannot reset it,” says Glassberg.

Buy smart: Ackroyd suggests buying refurbished phones from sources like Amazon, eBay, Swappa or Gazelle.

Says Liam Howley, chief marketing officer of Decluttr.com, “Compared to forking out more than $1,000 for the latest phone, the cost of a refurbished iPhone 7 is very accessible (from $264.99), and it has all the features that people want and need.”