Jan 4, 2012

When you buy something at BESTBUY or many other places, they try to push a "Buy back" plan nowadays. Is it really worth it? Is it worth paying that little bit of extra cash so that you get money back later on?

Depends on what product and how you plan to use it. If you are going to be getting insurance on the product (like mobile devices, tablets, laptops, GPS etc).. then it seems that the buyback is not of much use. Why?

Because the insurance is something you will be paying as a lumpsum or on a monthly basis (this is better --< but make you remember to set a calendar reminder or autodeduction setup). If your phone/device breaks and you use the insurance, I am not sure if the buyback will cover the new item..would it? Will update this part soon

I did some basic math on the BEST BUY BUYBACK plans.. using the iPhone 4S (with AT&T two year contract) and Bestbuy's $14.99/month phone insurance plan and the initial cost of the buyback as parameters. The calculations are shown in the shared powerpoint (please access it via the link below). I will also add share the excel sheet very soon or send me an email psusaver at gmail dot com.

You can find a shared powerpoint here (google docs webpage)

Opinion: It appears that it carries almost NO value for two year contract plan customers IF you purchase phone insurance.. (which is a good idea for most smart phones). If you don't buy the insurance (ie if you are covered through other insurance like home insurance rider or auto policy etc..) then selling back and getting decent money (ie a guaranteed amount) might be worth the extra 30 or 60 initially, IF you are planning on spending more on the new phone.

AT&T upgrade eligibility is only after TWENTY (20 months) so there is no point keeping the insurance that long either.


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