3 Ways To Buy a SkypePhone S2 On 3

A friend just tried to upgrade his SkypePhone to the new Skypephone S2 on the 3UK network - he is 14 months in to an 18 month contract. The prices he could pay:

1. £105 to upgrade 4 months early (with all the lock-ins of a new contract);
2. £76 to purchase a reconditioned used handset;
3. £60 to buy a brand new Pay As You Go handset (which he could use with his contract SIM).

Would anyone at 3 like to explain how that possibly makes sense?

I guess at least if you buy the reconditioned one it ought to work, wheras maybe the new PAYG one will have to take a trip to the repair shop before it's usable?