Best Buy recently announced a program to buy back your used gadgets so you can upgrade to the next big thing when it inevitably comes out. The Buy Back Program from Best Buy requires you to pay anywhere from $39.99 to $299.99 depending on the product when you initially purchase the item. This guarantees that they will later buy back the item at a set rate depending on age. This ranges from 50% down to 10% of the original purchase price.
Ok great. This sounds like a great way to upgrade down the road right? Not so fast. Digital Trends recently analyzed how well this works out for a few different products. For example, the Buy Back program would pay you $120 today for the 20 month old iPhone 3GS. However, you originally payed $60 to enter the program so you actually only net $60.
For comparison, Digital Trends says the average used price of this phone right now is $275. I checked eBay and found that most of them were priced over $300! You lose $240.
There is a similar service called Gazelle which will also buy back your used products but does not require a fee to enter the program. Their current price for the iPhone 3GS is $165. Not as good as selling it yourself, but still much better than Best Buy's price.
If you don't want to go through the bother of selling your used tech gear on eBay or Craigslist, I recommend using Gazelle. You'll get more money, and it's really simple. Shipping is usually free and many times they will send you free packaging materials to use.
However, if you want to get the most money for your used gear, consider selling it yourself. It's not nearly as difficult as you think, and you'll get more money.
The bottom line - don't use the Buy Back Program at Best Buy! It could potentially cost you hundreds.