Buyback deals are a bad deal for most consumers

Recently introduced buyback programs from Best Buy and Walmart are appealing to consumers wanting the latest in electronics. However, a closer look at these programs by Consumer Reports found that while they can be convenient, buyback programs don’t offer the best value.

This online exclusive report, which evaluates Best Buy’s Buy Back Program and Walmart’s TechForward Buyback Plan and also looks at alternatives for consumers, is available free at www.ConsumerReports.org.

Consumers who pay to enroll in either the Best Buy Buy or Walmart program at the time of purchase are allowed to exchange that electronic device for a preset percentage of its value toward the purchase of a newer model, assuming it’s in at least good condition. These programs may seem like attractive deals for those weary of the short shelf life of many consumer electronics items, which always seem to be rapidly replaced by updated models with the latest features.

But Consumer Reports found that buyback programs are fairly pricey and measly in what they pay to buy back the item. If the item becomes damaged, Best Buy or Walmart may give the consumer less money back or perhaps even nothing. Those who do get money back for their electronic device must accept the payment in the form of a store credit from the retailers.

For early adopters, enrolling in a buyback program may make sense because most will knowingly buy an electronic device with the intent to replace it with a newer model within months. Also, if the convenience of disposing older gear outweighs cost consideration, a buyback program may be a good option.

Less Costly Options

• Consider a trade-in program. A trade-in program, which is an option at many retailers, has two important advantages over buyback program—it doesn’t cost the consumer anything upfront and usually accepts items from other stores. However, if an item is damaged or in poor condition, a retailer can refuse a trade-in on a whim, and they usually pay less for items than a buyback program. Consumer Reports evaluated trade-in programs from Target, Costco, and Radio Shack.
• Sell the item independently. In many cases, consumers can usually get more money selling their electronic item on their own buy using sites such as Amazon.com, eBay and Craigslist. Even with the sellers fees associated with some sites, consumers are more likely to make a profit.
• Donate or recycle the item. Donate older electronics to a good cause such as a local school. To find out more about recycling electronics, check out Consumer Reports comprehensive guide.

For a comparison of Best Buy’s Buy Back Program and Walmart’s TechForward Buyback Plan, including costs and conditions and a look at trade-in programs such as Target’s NextWorth, Coscto’s Trade-in Program and Radio Shack’s Trade & Save Program, check out the full report on www.ConsumerReports.org.

About Consumer Reports

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