Best Buy's Buy Back Program Not Worth the Cost

Have you ever made a large electronics purchase only to find out a newer version released weeks after your purchase? Having been obsessed with the newest and greatest technology I found myself purchasing upgrades after about a year of use. Best Buy's buy back program allows you to pay a onetime fee and have guaranteed trade-in value for a set period. As the life of the product ages, the less money you receive back. While this may sound like a great idea, it hardly benefits the consumer.

The Cost

Let us take a new PlayStation 3 at a cost of $299.99, for example. Best Buy's buy back program cost a mere $29.98 for two-years. Still sounds good right? Well here is the catch, the first 6-months you receive a store credit for up to 50% of the original price, with 10% taken off for each 6-month period. After two-years, you only receive 20% of the original purchase price, or $60. Your total cost for the PS3 with the program now exceeds $330 with tax. You would only receive the maximum of $150, in gift card from, up to 6-months after purchase. The value of this program is hardly worth the value if you plan to keep your electronics longer than 6-months.

Buy Back vs. Trade In

Although the buy back program is advertised on the Best Buy website and TV commercials, the trade-in program is less known. The trade-in program allows you to trade your used electronics for a Best Buy gift card, or a lesser cash value. I recently used the trade-in program to sell my BlackBerry Bold 9700, for which I received a gift card value of $110. However, I did not purchase the phone at Best Buy and received it as an insurance replacement to my BlackBerry 8900 for no cost. While the trade-in program does not guarantee value, it is free to use and typically pays more than 20% of the cost within the first 18-months of ownership. However, if you purchased the buy back insurance, you would receive the same value, buy would still have to pay the flat fee.

Hassle Free?

While the main draw of the buy back program is that is offers hassle and haggle free resale of your electronics, it does always offer the best deal. You still pay an upfront fee, regardless of program use. The trade-in program, like the buy back program, is hassle free and only requires you to go in a participating retail location. Before considering the program, you should consider how much your hassle free experience is worth.

Alternatives

A gift certificate is great if you plan on upgrading your used electronics. However, the maximum value is still only 50%, within 6-months. Selling your used electronics on eBay, or to friends can net a higher value. For instance, that same PS3 starts at $140 on eBay as the lowest price. While eBay has its risks and hassle, you get cash for your used electronics and have the benefit of earning more money for your electronics. Even if sold at the minimum price of $140 on eBay, you still net a profit after eBay fees when you consider the buy back program initial fee of $29.95.

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