Los Angeles (CA) - With the new 3G iPhone out, many owners of the first generation models are looking to trade in their clunkers for a shiny new model and Miami-based Freeiphoneswap.com is helping people do just that. The company is offering 150 to 350 dollars for old iPhones and owners can either send them in or drop them off at several locations nationwide. Often the money paid out can fully pay for a new iPhone (except for the service plan) with some extra cash to spare for all the accessories you’ll undoubtedly have to buy.

Freeiphoneswap will pay $350 for the old 16 GB iPhone, $250 for the 8 GB and $150 for the 4 GB model. This is substantially higher than the $100 to $300 per phone it had been paying up until the launch of the 3G iphone. The money is sent via PayPal or by check in two days, according to the company’s website. Purchased phones are stripped of their components and then reused.

Freeiphoneswap.com spokesman, Sam Hickson, says, "We are providing a unique service to consumers, allowing them to upgrade their equipment without the risks involved with something like eBay or Craigslist."

Customers can either send their phones in or drop them off at locations in New York City, Miami, New Jersey and Long Beach California. People are advised to call 30 minutes prior to visiting the drop off locations.