Not so long ago I was ready to trade my original iPhone in for the iPhone 3G. I was eyeing the refurb that could be had for about $99 at the time. When rumors started to gain strength about the new iPhone 3GS hitting market I decided to hold off.

AT&T is now giving the iPhone 3G 8GB for $99 with a new contract and as you expect the price of those refurb devices has come down as well. Customers willing to sign away two-years of wireless freedom can get the 8GB iPhone 3G refurb for $49.

If 8GB isn’t enough space for you, the 16GB iPhone 3G can be had for $99. Those prices are $50 less than what you would pay for a new iPhone 3G for each capacity. Of course the iPhone 3GS is probably worth the extra $140 to most of us.

[via AT&T Wireless]