Why is this phone so cheap on CL?

[Zeze]

https://newjersey.craigslist.org/mob/5695568316.html

$550 brand new for T-mobile Galaxy S7 Edge. I'd normally dismiss something like this except:

1. It's sold at some kind of a mom&pop tech/phone repair store.

2. I called the guy at the store. He assured me that it's brand new. He said it even comes with 30-day warranty.

3. I asked him flat out, if I come across any trouble with this phone (blacklisted, etc), I'm going straight back to your store to raise fuss. He said okay.

Why is it so cheap? He said 'wholesale'. It's SM-G935T, so it's T-mobile, not those international versions.

I'm skeptical yet it's a guy in a store I can raise hell against + warranty/receipt will be provided.

This phone should be nowhere near $550 for brand new. $700 retail.

After in-person inspection and all's well, I can buy it with a CC for an added protection if something goes bad down the road.

 

[Sonikku]

Maybe it's like Good Fellas.

 

[Fanatical Meat]

As a wireless guy I can say the $550 price is in the ballpark of what they pay. The non company owned places can't have devices sit around too long because they don't have endless supplies of money to buy inventory and have it sit on a shelf.
I'm going to guess this device has been sitting around since launch. Most of the non corporate places want/need inventory to turn over ever 2-6 weeks max.

 

[sdifox]

30 day warranty is a big red sign.

 

[Zeze]

30 day warranty is a big red sign.

Better than 15 day warranty by Newegg for international versions. They are cheaper ($550~) in return.

But I'm surprised to find US version phones just as cheap & local to me.

 

[Zeze]

As a wireless guy I can say the $550 price is in the ballpark of what they pay. The non company owned places can't have devices sit around too long because they don't have endless supplies of money to buy inventory and have it sit on a shelf.
I'm going to guess this device has been sitting around since launch. Most of the non corporate places want/need inventory to turn over ever 2-6 weeks max.

I'm wary that since it's a phone repair place, they tinkered with internal parts and swapped bunch of things.

 

[Fanatical Meat]

I'm wary that since it's a phone repair place, they tinkered with internal parts and swapped bunch of things.

Ah now I get it.
I still wouldn't worry like I said its real important for these places to have a liquid cash supply. Maybe they need the cash for something else.

 

[Insomniator]

$550 isn't too crazy of a deal.

If it were like 400 I'd be real wary. Funny how a better deal would make me feel worse in this case.

 

[Zeze]

I called the guy again.

I told him flat out about my concerns and he told me frankly what happened:

1. His supplier gave him this phone at a cheaper price

2. IMEI is clean for 'now', but he can't take it back if it gets blocked after 90 days.

3. Why TF would it get blocked? I asked. He said it's a risk because the suppliers bought it on a payment plan of sort. And it's resold to him and to me. So down the road IMEI may get blocked if suppliers stop making payment.

How does that work? What kind of payment plan can T-Mobile have with the supplier where it may get blocked down the road?

How can IMEI can be bound to a payment plan somewhere with T-Mobile when I use it with T-Mobile?

This screams like stolen phones to me.

 

[Fanatical Meat]

^^yup sounds more suspicious now but imei banning almost never happens and this guy can't do a background check on every seller.

 

[iroast]

WINTECH
Affordable Computer & Cell Phone Repair in NJ

 

[slayer202]

$700 retail? Find the best deal at a more reputable place if you are so scared

http://www.ebay.com/itm/Samsung-Gal...902043?hash=item3d1fb41a9b:g:5SoAAOSw~oFXDo3V

 

[Zeze]

^^yup sounds more suspicious now but imei banning almost never happens and this guy can't do a background check on every seller.

What would cause IMEI banning? If someone reports a stolen phone to T-Mobile? But who would report it if the phone was brand new?

 

[Ns1]

I called the guy again.

I'm surprised he was so honest - that doesn't seem like a story you'd lie about.

 

[pilkoplo]

$700 retail? Find the best deal at a more reputable place if you are so scared

http://www.ebay.com/itm/Samsung-Gal...902043?hash=item3d1fb41a9b:g:5SoAAOSw~oFXDo3V

Thanks for link suggest

 

[Zeze]

$700 retail? Find the best deal at a more reputable place if you are so scared

http://www.ebay.com/itm/Samsung-Gal...902043?hash=item3d1fb41a9b:g:5SoAAOSw~oFXDo3V

Wut. Your very link's product is:

Its been Blacklisted by T-mobile.

 

[slayer202]

Uh, yeah, exactly

I didn't mean buy that one. Just some added "evidence" for you

 

[Zeze]

His story doesn't make sense though.

IMEI actually does indicate if a phone is being financed. The status will show as FINANCE.

If he shows me that via same T-Mobile IMEI checker that it shows as CLEAN. Then I really don't anything to worry about it being blacklisted from non-payment.

Then the only concern remaining would be someone reporting it as stolen.

 

[hellfire88]

His story doesn't make sense though.

IMEI actually does indicate if a phone is being financed. The status will show as FINANCE.

If he shows me that via same T-Mobile IMEI checker that it shows as CLEAN. Then I really don't anything to worry about it being blacklisted from non-payment.

Then the only concern remaining would be someone reporting it as stolen.

Yes, step 1, run the IMEI into T-Mobile IMEI checker (which you seem to already have done). Even if it shows as "Congratulations, this device is ready to use" blah blah, the 2nd scam is to report it as stolen if they had an insurance plan on it. They would pay the $150 deductible and the phone you bought would then get blacklisted. They sold it for $550 and paid $150 deductible = they made $400. Be very wary...its happened to me before.

Also, even on swappa.com, which many people use to buy used phones, this kind of scam happens. At least you can pay via PayPal which now gives buyers what...180days to dispute a transaction?

 

[Zeze]

Yes, step 1, run the IMEI into T-Mobile IMEI checker (which you seem to already have done). Even if it shows as "Congratulations, this device is ready to use" blah blah, the 2nd scam is to report it as stolen if they had an insurance plan on it. They would pay the $150 deductible and the phone you bought would then get blacklisted. They sold it for $550 and paid $150 deductible = they made $400. Be very wary...its happened to me before.

Also, even on swappa.com, which many people use to buy used phones, this kind of scam happens. At least you can pay via PayPal which now gives buyers what...180days to dispute a transaction?

Great info. Looks like I'll pass on this. That insurance scam is just too much risk that I have 0 visibility over despite IMEI being clean.

 

[Ns1]

At least you can pay via PayPal which now gives buyers what...180days to dispute a transaction?

yes

 

[hellfire88]

Great info. Looks like I'll pass on this. That insurance scam is just too much risk that I have 0 visibility over despite IMEI being clean.

Yea, so there's no 100% safety buying used phones anymore.

And on the flip side, as a seller, with the 180day PayPal policy for s buyer to dispute a transaction, you are not safe neither! Someone can buy your perfectly good phone and use it for 179 days, then without warning file a dispute and since PayPal usually sides with buyers, you'd have to refund the guy.

This is why I don't really buy and sell used phones much anymore. Maybe just factory unlocked and direct from manufacturer phones like Nexus where you can worry a bit less about insurance scam.

Sent from my Nexus 6 using Tapatalk

 

[WaTaGuMp]

The price is close to what a shop sells them at around here.

http://orangecounty.craigslist.org/mod/5714712374.html

 

[RockinZ28]

Wow $550 is cheap? It was a hassle to sell a brand new Note 5 on CL for $450 last year, in the bay area too.

 

[Red Squirrel]

If it really is legit, I would not be surprised if phone prices in general are grossly overpriced, thanks to cell network subsidies. So could very well be that the wholesale price ends up being like a 10th of what the retail price normally is. I could be wrong though.