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I am not upgrade eligible to bump up from 3GS to 4 for a couple more months, so I was thinking of what it would cost me to go ahead and purchase at the unsubsidized price for $200 more than the usual price.

I see a lot of phones on eBay (and craigslist, too) selling for a lot of money. I have three questions:

1) Why do used iPhones sell for so much money? I know it's contract-free, but what would someone use it for without service?

2) What makes a used iPhone attractive/unattractive to a buyer? I have a dead pixel which has never bothered me and a hairline crack on the back near the dock connector port; will this take a lot off of the value?

3) Without knowing for sure, is there a reasonable estimate for the haul I can get for my black 16GB 3GS with the above-mentioned "flaws?" It's still fully functioning, just a little too old for my taste.

Anyone who has sold their phone and can give input would be a big help. If I can go to the Apple Store now and get a brand new phone then flip my current one to recoup the cost, I'll do it in a heartbeat.