T-Mobile is changing its trade-in program, which may not please all users.

Starting in October, T-Mobile will accept trade-ins of devices with cracked screens and liquid damage, though their values will be less than those in perfect condition.

T-Mobile has permitted broken devices for trade-in before, but mainly for budget 5G phones. An exception occurred in December 2024 for the iPhone 16 and Galaxy S24, where broken devices received full trade-in value.

Once the changes are implemented, phones with screen or water damage will receive half the standard trade-in value. Devices that do not power on or have Find My enabled are ineligible.

Trade-in values will vary by plan. Experience Beyond customers will be in Tier 1 and receive the highest values. Experience More customers will likely be in Tier 2 and get a trade-in credit.

Devices not listed as eligible might also qualify for trade-in, a change from current policy. T-Mobile will evaluate unlisted devices to determine their trade-in value.

According to an internal memo, a broken device being traded in must have been active on T-Mobile's network for a minimum of 30 days within the prior year.

The intention is to ensure customers own the device they trade in. Many people have old phones not on any plan, and some acquire inexpensive, damaged devices to exploit trade-in deals.

T-Mobile's competitors, AT&T and Verizon, have accepted broken trade-ins for some time.

Many Verizon promotions allow broken trade-ins, sometimes at full value. However, Verizon requires trade-in phones to have been active on their network for 60 days. AT&T accepts broken devices if their market value exceeds a certain amount.

While T-Mobile still lags behind its competitors, the new trade-in criteria is a step in the right direction.

T-Mobile will launch promotions for the Pixel 9, Pixel 10, and Motorola flagships that will accept damaged trade-ins starting October 2. Customers trading in functioning devices can save up to $1,000, while broken devices will get up to $500 off.

T-Mobile is easing trade-in rules to help more customers upgrade, but the network usage requirement may deter some. It is unknown if the company will extend this requirement to functioning trade-ins, which would upset many. Providing larger discounts to those on premium plans seems designed to attract customers to more expensive plans.