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Iphone bought from Ebay Activation Process?

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As many of us know, At&t currently doesn't offer any good upgrade options without taking more money from your pockets. I recently called them about simply upgrading to the Iphone 5 from the Iphone 4 because I am eligible. However, even though their website says the phone is free with a new 2 year contract, I was told that my bill would still go up by $15 more each month by renewing my contract. Therefore, I am considering buying a used or refurbished Iphone 5 from ebay and taking it to an At&t store to have it activated. The phones from ebay do not have a SIM card and I don't think the SIM on my iphone 4 is compatible with the 5.

Therefore, would At&t still force me to renew my contract and charge me that extra $15/month if I take a phone purchased from ebay to their store for activation? I am assuming a new SIM card would be needed, but not sure if that would mean having to renew my contract. I just want to get a newer phone without having to renew another 2 year agreement.

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