In a press release earlier this week, SquareTrade, the leading online provider of supplemental warranties for consumer electronics, announced it is now offering a buyback guarantee at no additional cost as an accompaniment to its iPad 2 warranty. Many retailers, such as Best Buy, offer similar buyback guarantees for prices as high as $69.99.
Buyback warranties have become popular lately, as manufacturers trend towards shorter and shorter product release cycles. Many consumers have become hesitant to upgrade certain devices, for fear that the next generation version of that device is right around the corner. Buyback warranties, by guaranteeing consumers the return of a certain portion of their original purchase price when they trade their device in, aims to reduce this burden.