Tuesday, January 04, 2011

Early adopters may see financial rescue with Best Buy's new Buy Back program

Best Buy is ready to launch a Buy Back program that should help reduce the wallet strain for constant early adopters. The plan will, for a fee paid at the time of purchase, allow consumers to sell back their computers, tablets, smartphones, and TVs (under $5,000) for a percentage of its original price. The percentage will vary based on time of ownership (and naturally, condition).

Tire Rack- Revolutionizing Tire BuyingAccording to the BGR report, the program will launch on January 5. Additional products will be added to the program over time.

There is already a trade-in program on Best Buy's website. It's assumed this new program will replace that one over time.

The fee will vary depending on the product. BGR's example for a cell phone was:
cell phone purchasers can opt into the cleverly named Buy Back program for $59.99 at the time of handset purchase. Between months 1 and 6 of handset ownership, users can then trade-in their device to Best Buy Mobile for 50% of the phones full retail value. Between months 6 and 12 the device can be turned in for 40% of its original value; months 12 to 18, 40%; and months 19 to 25, 20%. In the example above, a phone with a full-retail value of $599.99 can be exchanged, between days 32 and 180 of ownership, for $299.99 — netting the customer $240 when factoring in the plan’s cost.
For a TV, the following is the price structure:
TVs under 6 months old can be turned in for 50% of the original full-retail price; 6 to 12 months, 40%; 12 to 18 months, 30%; 18 to 24 months, 20%; and 10% during the third and fourth years of ownership.
All of the "buy backs" will be issued in the form of Best Buy gift cards, which is the same procedure with their current trade-in program.

It's hard to imagine someone needing to trade in a TV after a few months; we can see this as being most useful for those who are constantly upgrading their cell phones. For us, our old technology often ends up on eBay, where we can often garner more than what Best Buy is offering.

Based on all that, does this deal sound interesting to you? Sound off in the comments.

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