Is Best Buy's 'buy back' program worthwhile?
Timing is everything when shopping for electronics. That's because there's always a possibility that a newer version of your favourite gear is just around the corner.
Enter Best Buy’s new ‘buy back” program, a new take on trade-in programs that already exist, which usually don’t let you know how much you’ll be getting for your old stuff until you bring it in.
Here's how the program (U.S. purchases only at the moment) works: When you buy new electronics at Best Buy, you have the option of paying a fee ($60 to $300 depending on the item and price) that will guarantee the store will buy back the item at a later date, if you're so inclined to upgrade or simply get rid of it.
In the agreement, Best Buy pays up to half of the original price if you bring the item back in perfectly good shape within six months, up to 40% if you bring it back within a year, and so on.
So, is the program a good deal for early adapters, let alone average consumers?
Not according Consumer Reports: “When you look at the fine details of the Best Buy program, it's not likely to make good economic sense for most of us. In many cases, the cost of the plan will exceed the trade-in credit you'll receive.”
“For one, you're prepaying for a service you might never use. For another, unless you plan to buy a new TV every six months, the amount you'll receive isn't likely to be meaningful,” CR declares.
As well, the buy-back usually comes in the form of a store gift card, not actual cash – and gift cards are notorious for being a better deal for stores than for shoppers.
That's why the folks at Digital Trends labelled the program “a total rip-off” when doing a price comparison on some fairly common items, including an iPhone 3GS, a Samsung Galaxy Tab, and a Samsung 52″ television.
Of course, for the most part, you can always sell your old gear on eBay or Kijiji. But that’s labour intensive if you’re not a regular seller since you have to collect money, ship it, and possibly deal with disappointed customers.
When this service arrives in Canada, will you sign up? If not, how do you currently handle the fight against obsolescence?
By Gordon Powers, MSN Money
Posted by: Justin | Mar 10, 2022 8:47:40 AM
I won't be, that's for sure. The fact that they charge exorbitant amounts of money for their "warranties" is ridiculous, and now this. I suspect people will be lured in to begin with, and then the program will die when everyone realizes what a rip off it is. Sure, selling on Kijiji or eBay can be laborious but I'd rather do the work myself than let another giant company get even a slice of my money when I don't have to.
Posted by: Bob | Mar 11, 2022 12:08:54 PM
I like Best Buy, but this program is a total rip off. Consumers are better off selling their electonrics thru Kijiji, eBay, newspaper, etc... and save the ridiculous buy-back fees. Do the math....if you pay $1,000 for a product + $300 for this service for a total of $1300, the most you'll get back after 1yr is $400 back (assuming you can recover 40% of the item's value as the article above states). That means you're out of pocket $900 (exluding taxes). But, if you sell via Kijiji and assume you can still recoup 40% of your product's value after 1 yr (which is reasonable), you'll only be out of pocket $600. To the extent you can sell your item at better than 40% of it's original value, you're #WINING!
Posted by: Doug Bennett | Mar 12, 2022 3:31:46 PM
I used to shop at Best Buy and Future Shop. Future Shop tells you your'e crazy not to buy the extra warrenty. Then they don't want to deal with you. Because Best Buy and Future Shop are one and the same company, I don't deal with either of them. Best Buy's buy back program is just another reason to deal with an independent.
Posted by: binder dundat | Mar 12, 2022 6:06:24 PM
another money maker for best buy and a total loss for the customer, I'm sure there will be people who buy into this scheme as they need to have the latest and greatest but its a pure rip off.
Posted by: Chip | Mar 13, 2022 6:01:22 PM
Anyone idiots who buys a big ticket item i.e. Big Screen TV and after 6 months don't like it or want to buy a "better" one or can probably no longer afford it because they put it on their credit card AND on to top it all off, were stupid enough to pay into this scheme... deserve the loss they incur, are total morons and should be banned from ever buying anything again.