Details of Best Buy’s new ‘Buy Back’ program revealed

By on Jan 3, 2011 at 10:17 AM
Exclusive January 3, 2011

It looks as though retail giant Best Buy is planning to launch a new buy back program aimed at keeping users who uncontrollably constantly upgrade their smartphones off-cycle, buying from Best Buy Mobile. At this point, details are scarce. But from what we can gather, 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. The offering will certainly resonate well with some frequent upgraders who purchase new smartphones long before their two-year commitments have expired. What do you think of the Buy Back program? Does it make you any more likely to pickup your next handset from Best Buy?

UPDATE: We’re being told that the Buy Back program will extend beyond mobile devices to cover a variety of other consumer electronics. A source also tells us that customers will get a discount on the price of the Buy Back plan if they combine it with Best Buy’s Geek Squad protection offering as well; the Buy Back program price will vary in accordance with the type of product covered.

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  • mike

    No need for this. I get more than those %’s selling my “old” phone on eBay. I can typically get 80% of the price I paid after 6 months.

    • Anonymous

      I checked out a couple phones (Droid X, Fascinate, Captivate, G2) and they seem to be selling in retail packaging for $350-400 or so, the used ones start about $200-250.

      This plan from BBY seems like a pretty good deal, its guaranteed cash, and you don’t have to deal with Ebay.

      From BBY’s perspective, this is a very smart move. Some of you may not know, but they bought Carphone Warehouse (Biggest cell phone retailer in Europe) and they are trying to use that model to become the dominant player in the States. Its this reason that they offered all the hot phones at cheaper than carrier pricing, with no rebates. Its also why they are doing plans like this. They want the marketshare! Embrace the good deals.

  • Hero

    The program isnt just for cell phones, its for multiple electronics including computers also.

  • EnglishPedant

    Unless tree sap is involved, I think you used the wrong word (resinate vs. resonate).

    • http://www.bgr.com Andrew Munchbach

      Thanks, slip of the finger :)

  • http://twitter.com/rtimi timi

    that depends on the phone and what technology is out for me if not much is out there’s no need to upgrade. e.g. nexus s is just what car manufacturers call a facelift.

  • http://pulse.yahoo.com/_EZJ6EW7PYHT4TOC2NWA62NQV6Y teco221

    So, all those new Android can be returned then exchange for a new Verizon iPhone? :D J/K

    • Anonymous

      Like a Android phone will hold it’s value! They’re a dime a dozen, with a new ones coming out all the time. Who’s a sucker enough to buy a 6 month old Android phone that can’t run any new Apps? It’s already outdated. About the only thing you could do with them is give them away for FREE.

      • tfredro

        Seriously?? The EVO on Sprint has been out six months this month and the darned thing is still selling really well.

  • Donny

    Well. This is good for android users who get the newest device every two weeks or the casual upgrader like myself who gets a new phone every year…no more dealing with thugs and illiterate trash on craigslist. Id rather make 30 less than deal with them or scanners on ebay.

    • Donny

      Scanners = scammers …..autocorrect fail

    • Cer

      Yearly upgraders aren’t casual upgraders.

  • Jordan

    I work for Best Buy…
    This doesn’t apply to only mobile phones but many electronics as well including televisions, computers, GPS, MP3/iPods, etc.

    I’m sure this program will achieve moderate success. However, like one user stated, you’ll receive more if you sell on Ebay and/or Craigslist.

  • Johnnyboyya

    this is the stupedest idea for smartphone users. if you are eligeble for an upgrade then youre atleast an owner of a smartphone for 1 1/2 years so how are you gonna turn in your smartphone towards your new phone if you cant get an upgrade until a year and a half meaning 18 months in! so youre gonna get only 30% of the value of the phone and thats like a 100 bucks lol

    • fr3d0

      it is simple.

      with the example above – at 5 months you will get $299 for the EVO. you then can apply that to the outright purchase price of any phone. say the EVO 2 or whatever is out 6 months from now. if that new phone cost $599 outright then you would pay $300 out of pocket for the new phone (plus the $59 for the buyback plan)

      not a bad deal, but since i get an upgrade every year (sprint rocks!) this is just OK for me..

      • W1temexcano28

        How is this just OK for you? Think about it, you pay $199 for the EVO and $60 for the buyback program. After one year you are qualified for an Upgrade! So you have Best Buy buy your phone back, you get $239 on a gift card. You can now purchase that new $199 phone and an accessory and not pay anything. It looks like Sprint Premiere Customers are the lucky ones.

      • fr3d0

        you forgot to deduct the $60 i paid for the plan in the first place so net cost is $10. still a good deal. it just depends if you want to deal with reselling or not. my wife gets my old phones and i use our upgrades :)

  • Anonymous

    Why people have such a h@rdon for phones is beyond me, really. To say they have the latest/greatest all the time? It’s the same with the whole Android is better than anything/iPhone is better than anything. It’s lame…

    If you look at the handsets sold over the last 18 months, 95% are the same thing. Faster, sure…but does that extra boost in speed make better calls? Does it allow you to text faster? The only benefit I see is for those that beat the sh!t out of their phones…

    • http://twitter.com/SantoTheWriter SantoTheWriter

      just because you do not share the beliefs of the many who like to have the new phones does not make them lame. If you really think that it’s not that big of an improvement compare the HTC Hero and the HTC Evo 4G on Sprint. Is it really just a “extra boost” or a completely different experience?

  • http://rmbo47.myopenid.com/ rmbo47

    This would make sense for me, but I don’t want to admit to myself that I spend this much on phones.

    • Anonymous

      Same here…it’s tough to admit lol

  • Danzig

    Another thing to remember is that you get 50% value MAX. It’s up to a geek squad employee to determine if the product is in good condition. If they say no, they can give you much less money.

  • siscorampage

    This is a fantastic idea if you have premier account status on sprint. You are already getting the upgrade every year as is and no you can get best buy to pay $180 towards a new phone. Sounds good to me.

    • Cer

      This is what I was thinking too, but it can’t really work this way, can it?

  • http://twitter.com/derrickisonline Derrick -Lex-

    I get 100%+ buy back doing the following: Call Verizon threaten to leave them for Sprint’s latest offering unless they give me the upgrade price of a new model phone (vs making me pay full retail). Then I sell the original phone for less than what Verizon would charge someone who broke a phone with no warranty/insurance but more than what I paid. So for example, I bought a Droid X for $199, I’d sell it for $250 – $300 within the year since some people can’t afford to pay $500 retail for a new Droid X replacement. Very simple. Verizon always gives me the upgrade price because hell I’ve been with them forever and they’re raping me anyway!

  • Jroc869

    Lets see, Ive been doing this for a few years now without the 60 fee. I just take my current phone slap it on CL or Ebay and use the proceeds towards my new phone. Fail.

  • Gqmac2

    Damn… why could this not be available 4 months ago? I would have purchased my Droid X from them instead.

  • Noneam

    wtf I shouldn’t have to pay to get the residual value of my phone if I upgrade to a new phone. they should buy my old phone at the standard residual value the phone has. tech industry is going bonkers over rare earth metals anyway and every phone has rare earth metals in it.

  • Safari29

    why pay $60 to get 30% back on your phone just to pay $500 on a new one plus another $60 to be able to do it all over again more money for best buy

    • Cer

      Because you have Sprint Premier, which allows you to upgrade every year.

  • Not a moron

    You’d have to be a moron to sign up for this plan. Seriously.

    • http://twitter.com/livingbasehead Shelton

      Umm no did you read the article. it clearly explains how this can save some one 200 bucks. I dont know about you but I like keeping 240 bucks in my pocket rather than best buys. and it would be awful nice to be able to exchange something after using it for a month or two and figuring out if you really like it. But hey maybe I am a moron.

  • Roddy227

    I love the idea. Newer devices faster then the carriers allow

  • Lovedone1247

    I work for Best Buy and some of the comments below are a little miss-informed. The Buy Back Plan is 69.99 BUT if you buy our Geek Squad Black Tie to protect the phone, the Buy Back plan is 50% off. So the protection plan will cover the phone for the 6 months you have it. The plan has no deductables and you always recieve a new phone. Also, if the protection plan goes unused you get money back! So you upgrade to an EVO for 199.99 and you get the protection plan and the Buy Back for 34.99. In 6 months we will buy it back from you for 299.99. So every six months you get half off on a new phone. This way you stay up to date with the latest and greatest.

    This plan was created and geared more towards people that buy phones outright. If you look at it that way, the plan is a good investment.

  • Unhappy in Texas

    Got screwed with this plan. I bought an HTC Evo in March had to return twice in 3 months due to charging port issues. They also replaced the battery, they said it was no good either. When returned the first time, they told me that was a known issue for Evo’s. I asked why I was not informed of that when I made the purchase, but got no response. After only 1 week of having the phone back, it will never stayed charged. The phone dies within an hour or less, no warning, and even when it is plugged in! I have never heard of anything dying while plugged in. After it happened when I dropped my wife off (she needed to contact me to pick her up later), I took it back. When the phone dies, it starts flashing orange in the charge indicator and will do nothing for about 2-3 hours. So no service whatsoever. This happened 4 times within the week. After googling the issue, I found out this is a common problem with the Evo. I decided to return this piece of junk, and use my “Buy Back” program.

     After not getting anywhere with the employee, I asked for a manager. When he said he saw no problem for return, he sent us to Geek Squad area for the buy back. He also informed me to please be patient it was their first buy back ever. At the counter where I purchased the phone, the advertisement for the Buy Back says they will issue you a Best Buy gift card. They told me I would have to pick out a new phone to transfer the account to. The catch? I would get a new phone at the price of full retail. They wanted me to pay several hundred dollars to get another phone. I asked for the manager again and was told I did not need to talk to him, he would say the same thing. When i insisted on speaking with him, he told me that is how the program worked. I asked for just the gift card, he said they could not do that. The cheapest “free with contract” phone would cost me $150 to purchase. I told him I wanted to spend no more money. I am paying $10/month to Best Buy Geek Squad, as well as the $200 + for phone and accessories, and my monthly plan (which I had no phone for 3 weeks). I asked for their cards and plan on contacting corporate.

    Unhappy Customer with Buy Back and Best Buy.   

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