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Every cell phone carrier offers new cell phones as well as used (refurbished) ones. A refurbished phone costs less and was once owned by someone else who bought it brand new before turning it in. These phones are assessed on-site and either renovated right there in the store or sent off to a building where repairs are made. A limited stock of used phones is kept in the store, and they may not always have a used variant of the specific phone someone is looking to get.
Used phones can be found for any brand and model, but they're mostly sought after on the higher end. Expensive devices, like the Samsung Galaxy S8 or LG G6, are usually not affordable on a no-contract plan. Some customers don't want to sign a contract but still prefer a high-performance device for their individual needs, however. Used cell phones can remedy this problem and provide the best of both worlds at a reasonably affordable price.
There are several reasons to choose a used phone over a new one:
Functionally, there should be very little to zero noticeable difference between a used phone and a brand new one. However, some may notice there are scratches or other forms of minor aesthetic damage to the device. Most customers trade their phones in because they're looking to get a new one, not because there was anything necessarily wrong with the particular phone they bought; for this reason, users are more likely to end up with a device that was working fine before the previous owner decided on getting a different phone.
In this day and age, it's common for people to put cases on their phones, so the possibility of scratches and other signs of abuse is also not a given. This adds up to a major discount on a phone that's effectively brand new in both appearance and functionality. However, it's worth keeping in mind that certain important aspects of the phone can be damaged by physical abuse, such as scratches on the camera lens or impact damage to any mechanical parts of the camera itself. These are worth inspecting before committing to used cell phones.
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