Can You Sell a Phone That Is Not Paid Off Verizon: Complete Guide
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60-Second Summary
Can You Sell an Unpaid Verizon Phone?
Yes, but you still owe money. Sell your Verizon phone with a balance, but legally you still owe the remaining payments. Verizon’s easy auto-unlock in 60 days provides better resale potential than other carriers.
Important Points
- Must continue making payments – Continue payments even after selling
- Must disclose financing status – Risk of fraud lawsuit if not fully transparent with buyer
- Risk of blacklisting phone – No more payments and Verizon will blacklist the device (block from working with any network)
Three Main Options
1. Pay Off Balance First (Full Guide)
- Cleanest, highest payout option for any resale
- No further risk to yourself or buyer
- Requires upfront cash to pay Verizon balance
2. Continue Payments After Sale (Risk Assessment)
- Quick cash from sale without large upfront expense
- Or use BankMyCell’s guaranteed buyback payment for secured payoffs without buyer risks
- Must trust buyer and discipline to continue making payments
3. Sell to Dedicated Buyback Services (Comparison)
- Easiest, but expect much lower payouts than private sale
- BankMyCell is an exception and accepts financed phones with transparent prices and secure transactions
- Scout out the best payoffs and avoids hassle of seeking your own buyer willing to take a financed phone
Three Major Risks to Avoid
- Damaging your credit – Risk of damage to your credit score with missed payments after selling
- Having phone blacklisted – Device will be unusable to buyer without payments
- Collections agencies – Remaining balance put in collections
Six Steps to Selling Your Phone
- Check payment status and unlocking eligibility with Verizon
- Determine the best selling method based on your current situation
- Prepare the phone for sale with factory reset and data backup
- Disclose the financing status to potential buyers and avoid fraud
- Finalize the sale and payout through secure, safe channels
- Continue making payments to Verizon to avoid credit consequences
Bottom Line: Legally you can sell your Verizon phone before it is paid off, but you will remain responsible for paying the balance on your contract. You have three options including selling outright with continued payments, working with dedicated buyback services, and paying the balance first then selling for cleanest process.
Need cash now without payment complications?BankMyCell can accept your Verizon phone even with a balance while providing high transparency with pricing and secure payment transactions. Get competitive shop buyback offers from verified sellers with free shipping to instantly turn your financed phone into cash while you continue making monthly payments to Verizon risk-free.
Disclaimer: You can sell financed iPhones, but you are still responsible for the finance payments. The sale does not end your responsibility to continue your contract payments. Always check your carrier’s terms if you are not clear.
| TODAY'S BEST iPHONE BUYBACK OFFERS | |||
|---|---|---|---|
| Device | Financed | ||
| iPhone 16e | $510.00 | Compare | |
| iPhone 16 Pro Max | $1150.00 | Compare | |
| iPhone 16 Pro | $1045.00 | Compare | |
| iPhone 16 Plus | $705.00 | Compare | |
| iPhone 16 | $650.00 | Compare | |
| iPhone 15 Pro Max | $820.00 | Compare | |
| iPhone 15 Pro | $830.00 | Compare | |
| iPhone 15 Plus | $570.00 | Compare | |
| iPhone 15 | $535.00 | Compare | |
| iPhone 14 Pro Max | $790.00 | Compare | |
| iPhone 14 Pro | $720.00 | Compare | |
| iPhone 14 Plus | $325.00 | Compare | |
| iPhone 14 | $320.00 | Compare | |
| iPhone 13 Pro Max | $650.00 | Compare | |
| iPhone 13 Pro | $560.00 | Compare | |
| iPhone 13 Mini | $370.00 | Compare | |
| iPhone 13 | $400.00 | Compare | |
| iPhone 12 Pro Max | $370.00 | Compare | |
| iPhone 12 Pro | $290.00 | Compare | |
| iPhone 12 Mini | $180.00 | Compare | |
| iPhone 12 | $200.00 | Compare | |
| iPhone 11 Pro Max | $245.00 | Compare | |
| iPhone 11 Pro | $245.00 | Compare | |
| iPhone 11 | $165.00 | Compare | |
| * Best market prices updated August 22nd 2025 | |||
Data Source: BankMyCell compares over 100,000+ quotes and customer reviews from 20+ trusted buyback stores every 15 minutes via our data feeds, making us America’s #1 time-saving trade-in supermarket.
Are you contemplating the sale of your Verizon iPhone while you continue to pay for it through your phone’s installment plan?
Selling a Verizon iPhone that you still owe money on presents more challenges than selling a fully owned device. Understanding Verizon’s specific policies and possible outcomes, along with key considerations, is essential before you sell a phone financed through their payment plan.
Here’s the problem:
When you sell a Verizon iPhone that is still being paid off through a financing plan, you’re selling an item you don’t fully own yet, which leads to legal and payment-related challenges.
And that’s not all…
Incorrect handling of the situation will lead to credit damage and account restrictions, along with your device being blacklisted by Verizon, which will make it unusable for anyone who buys your financed phone.
This section explains how Verizon’s Device Payment Program works alongside the process of monthly payments.
Customers can buy Verizon phones through monthly installments without paying the entire retail price at once. The payment terms of this plan impose restrictions on selling the device while you continue making payments.
How Verizon's Device Payment Plan Works
Your agreement to Verizon’s payment program includes:
- The device cost will be paid off in monthly payments that extend over a duration of 24 to 30 months.
- You must cover all remaining costs for the phone under any circumstances until the full payment is completed.
- You risk paying early termination fees or the remaining balance if you terminate your service before your contract term finishes.
This means:
- The iPhone remains technically owned by the lender until you complete the final payment under your payment plan
- Verizon retains its financial claim to the device until you complete all payments.
- Your agreement stands with Verizon instead of the buyer who might purchase your financed phone
Think about it:
How comfortable would you be purchasing a financed phone from someone who still has outstanding payments to make? Selling a financed phone transfers ownership of the device to the buyer yet maintains your responsibility for any outstanding payments and balances.
Verizon's Unique Unlock Policy for Financed Phones
Verizon iPhones provide a significant advantage through their unlock policy which allows selling financed devices with outstanding balances more easily than carriers like T-Mobile.
After 60 days of activation Verizon unlocks phones automatically irrespective of ongoing device payment plan payments. Verizon adopted this policy because they agreed to FCC requirements when they acquired specific spectrum licenses.
The advantage of this policy:
- Verizon iPhones become compatible with other network providers following a 60-day activation period.
- Even when payments end the unlock status of a device remains unchanged
- The market values Verizon-financed iPhones above the phones financed through other carriers.
Are you interested in selling your Verizon iPhone while it’s still on its payment plan? BankMyCell enables you to maximize your device’s resale value regardless of ongoing monthly financing payments. Compare offers from trusted buyback stores.
Selling a Verizon phone that hasn’t reached full payment is legal, but requires understanding payment plan terms and balance obligations.
It is technically possible to sell your Verizon phone before completing payments, but you must understand key details about your payment plan and the remaining balance.
While you can legally transfer ownership of a Verizon phone that’s still under payment, you must adhere to certain conditions regarding payment liability and buyer transparency.
When selling a financed Verizon iPhone:
The law permits you to transfer physical control of the device.
You maintain legal responsibility for both the remaining balance and the monthly payments.
Verizon’s terms of service agreement contains no explicit clause forbidding the sale of a financed device.
Potential buyers need full disclosure about the payment status to prevent fraud claims.
Here’s the key distinction:
The transaction involves the physical device only because the financing agreement with Verizon stays between you and Verizon. The contractual agreement with Verizon stays in effect between you and Verizon no matter who possesses the phone.
Ethical Considerations for Selling a Financed Phone
Selling an unpaid phone to Verizon involves ethical challenges beyond just legal requirements.
- Not informing buyers about the payment status of a phone may amount to fraudulent behavior.
- The buyers need to be aware that the phone might be blacklisted if they cease making payments.
- Complete openness about the payment plan ensures safety for both you and the buyers against any potential device issues.
Multiple methods exist to sell your Verizon phone which still has payments pending on its payment plan.
There are multiple methods to sell your Verizon iPhone that still has a pending balance and each method offers distinct benefits and drawbacks.
Option 1: Pay Off the Balance Before Selling
How it works:
- Reach out to Verizon to obtain the payoff amount required for your device.
- Pay off the balance in full
- Sell the iPhone as a fully-owned device
- Transfer ownership cleanly with no strings attached
The advantage of this method:
Cleanest, most straightforward option
No risk to either party
A completely paid-off device stands to gain increased resale value and market value.
You will not have any remaining financial responsibilities attached to your device payment plan.
The disadvantage:
- You need sufficient funds available to settle the remaining balance immediately.
- This option becomes financially difficult if your debts to the device purchase are substantial.
Option 2: Continue Making Payments After Selling
How it works:
- Provide full payment details to the buyer when selling your iPhone
- Keep sending monthly payments to Verizon until your device reaches full payment completion.
- Maintain your Verizon account in good standing.
The advantage of this method:
You won’t have to pay a large amount at the time of sale.
You can get immediate money back from your phone through this option.
Trusted buyers including friends and family can make this option effective
The disadvantage:
- You face substantial risks if payments halt because the device could receive an unfavorable IMEI and join the blacklist.
- Requires trust between seller and buyers
- Complicates the relationship with the buyers
- Lower market value due to the uncertainty
Disclaimer: You can sell financed iPhones, but you are still responsible for the finance payments. The sale does not end your responsibility to continue your contract payments. Always check your carrier’s terms if you are not clear.
Option 3: Use a Specialized Buyback Service
How it works:
- Locate a buyback service that processes financed phones similar to BankMyCell.
- Obtain a valuation that depends on both your phone’s physical state as well as its payment history
- Ship your device to receive cash payment from the buyback service.
- Keep paying Verizon or settle your account balance in full.
The advantage of this method:
Convenience and simplicity
Selling your device through this service eliminates the need to search for individual buyers who accept financed phones
Reputable buyback services understand the financing situation
Quick and straightforward transaction
The disadvantage:
- Typically lower payout than private sales
- You are expected to continue paying Verizon for your device according to the payment plan.
Looking for a trustworthy solution to sell your Verizon iPhone that is still under financing? BankMyCell provides an easy solution to evaluate offers from trustworthy buyback stores that accept financed phones with outstanding balances.
You could encounter specific risks when you attempt to sell a Verizon phone that still has an active payment plan.
You need to comprehend all potential risks before agreeing to sell your device payment plan.
Stopping payments on your Verizon device payment plan after selling your financed phone triggers negative consequences.
Upon selling your Verizon iPhone that you’re financing and then halting your payments Verizon will likely report your delinquency and send the balance to collections.
- Verizon will probably report payment delinquency to credit bureaus which will affect your unsecured credit
- The entire remaining debt amount may be transferred to a collections agency
- Verizon has the ability to blacklist the device’s IMEI which stops it from being activated with any carrier network.
- The Verizon account may become closed or restricted.
- The new owner will find that their phone could unexpectedly stop working with cellular networks.
But here’s the truth:
Verizon phones become unlocked after sixty days, but Verizon can still blacklist the device’s IMEI number if the payments stop. Non-payment can result in a functioning phone being unable to access cellular service the following day.
The financing buyers of your phone encounter specific risks because of the financing agreement terms.
The purchasers of your financed iPhone also face certain risks.
- If payments stop your device will be blacklisted
- Buyers cannot directly assume control of your payment plan.
- The buyers of the device do not hold a contractual agreement with Verizon because they lack such legal ties to the company.
- Buyers have restricted options to resolve issues stemming from the device’s financing setup
This guide outlines the necessary steps for Verizon phone sellers who want to transfer ownership of their financed devices to new buyers.
When selling your Verizon iPhone before the full payment has been completed you should proceed with the following steps to reduce risks for yourself and potential buyers.
Step 1: Check Your Payment Status and Unlock Status
Here’s how to do it:
- Access your Verizon account through the official website or the My Verizon application.
- Access the device payment section through your billing information
- Review your payment plan to find the remaining balance and the number of months you have left to pay.
- Ensure the device has maintained active status for at least 60 days before checking unlock status.
- Request a payoff amount when you intend to settle the balance before you proceed with a sale.
Step 2: Choose Your Selling Method
Assess both your financial standing and risk tolerance to choose the most suitable option from the three methods previously described.
- Paying off the device before selling
- Continue making payments after selling
- Using a specialized buyback service
Step 3: Prepare Your Device for Sale
Your choice of sale method for your financed phone does not affect this preparation process.
Back up all your personal data
Log out of your iCloud account and turn off Find My iPhone before selling your iPhone.
Perform a factory reset
Clean the device thoroughly
Gather all original accessories if available
Step 4: Inform prospective buyers about your payment arrangement when selling your financed device.
If selling privately, honesty is essential:
- All advertisements for your device must disclose that financing payments for the phone continue on a monthly basis.
- Explain that you will continue making payments
- Potential buyers need to see documentation of your payment history and account status.
- You should draft a basic written agreement that explains the current financing conditions.
Step 5: Finalize the sale transaction and ensure the ownership of the financed phone transfers to the buyer.
When finalizing the sale:
- Accept payment through secure methods
- The receipt should note that the device remains under financing and features an outstanding balance.
- Assist the buyer to check their phone’s functionality by helping them insert their SIM card and testing it with their service provider.
- Ensure you share your contact details so both parties can communicate in future exchanges if necessary
Step 6: Adhere to your payment obligations under your device payment plan agreement.
After selling
- Continue making on-time payments to Verizon
- Keep records of all payments
- Setting up auto pay will help you prevent missed payments.
- Notify the buyer immediately if your payment situation alters.
Discover a simplified method to sell your Verizon iPhone through BankMyCell which connects buyers to stores offering competitive prices for devices with outstanding balances. BankMyCell links you to buyback stores that provide competitive pricing for financed devices which still have a balance.
Alternatives to Selling Your Financed Verizon Phone
Take these alternatives into account if you worry about risks involved in selling your financed device.
Transfer to a Friend or Family Member
Rather than a traditional sale, you could:
- Hand over ownership of the device to a trusted individual.
- Request them to settle payments to you directly while you maintain your payment obligations to Verizon.
- You should keep a close connection with the other party to make sure communication continues.
- Create a written agreement outlining responsibilities
Verizon's Early Upgrade Options
Verizon sometimes runs early upgrade promotions that enable you to:
- Exchange your existing device through Verizon’s early upgrade program before you finish paying it off.
- The trade-in value must be deducted from your remaining balance.
- Begin a new payment scheme for your latest phone model.
- Avoid the complexities of private sales entirely
Pay Off With a Personal Loan
When you want to sell your phone without complications but your funds are currently unavailable:
- Choose a personal loan option that may offer lower interest rates compared to Verizon’s financing.
- Use a personal loan to completely pay off the device.
- Sell the phone as fully owned
- Apply the money from the phone sale to reduce your personal loan balance.
Disclaimer: You can sell financed iPhones, but you are still responsible for the finance payments. The sale does not end your responsibility to continue your contract payments. Always check your carrier’s terms if you are not clear.
Helpful FAQ's
Verizon lacks the capability to track the location of an iPhone after it has been sold.
After you sell your iPhone Verizon loses the ability to track its physical location. Verizon keeps track of their iPhones on their network and can blacklist the IMEI number when payments lapse to block its activation with any carrier.
Verizon does not receive notifications about who owns your iPhone after you sell it because they do not track ownership transfers.
Verizon does not track physical possession of your device so they won’t know when you sell your phone. Their primary concern involves the timely receipt of monthly payments. Activating the phone on a Verizon account by the new owner could trigger an alert for Verizon about the change of ownership.
There isn't a direct method for buyers to check through Verizon whether an iPhone is under financing arrangements.
Verizon will not disclose your account details to buyers trying to verify if your phone remains under financing. Buyers are able to determine whether a device has been blacklisted or reported as lost or stolen by using the IMEI number. During the sale process transparency becomes essential to ensure all parties involved understand the financial state of the device.
Verizon unlocks phones 60 days after they activate regardless of payment status.
Verizon unlocks all phones after 60 days of activation whether the phone is fully paid or not. Verizon’s exclusive policy allows their financed phones to have better marketability compared to devices from competitors like T-Mobile.
Selling your financed iPhone won't affect your Verizon account status but you will keep receiving monthly bills for the device.
The Verizon account stays active without changes after you sell your financed iPhone. You must continue to pay for the device through your monthly bill payments. To maintain Verizon service you must use another phone or buy a new device.
Wrapping It Up
While it presents special difficulties Verizon phones that have outstanding payments can still be sold when you understand your payment plan terms and associated risks.
The article provides guidelines that will enable you to:
- Evaluate if selling your financed iPhone aligns with your needs
- Select the selling strategy which aligns best with your financial circumstances and your device’s payment structure.
- Secure both your legal and financial interests at every stage of the process.
- Ensure potential buyers receive accurate information about any outstanding balance.
It is best to clear the remaining balance before selling but if this is unachievable maintain regular payments and disclose your situation fully to potential buyers.
What options have you explored regarding your Verizon iPhone that you still owe on? Your current decision will affect both your financial situation and how you interact with Verizon as your network provider throughout time.
