NBC has an article about whether those technology buy back programs that companies like Best Buy offer are worth it. My opinion is that they are not. As the article points out, the terms are clearly stacked in their favor and you have to jump through a number of hoops to be successful. I won’t go in to the mathematics (because I’m not smart enough) but I can tell you that the math does work in the retailer’s favor.
I should also disclose that I’ve never purchased an extended warranty or any sort of “buy back†insurance before. I’m that guy that buys a car and has to say “no†about 100 times at the dealership as they try to upsell me on gap insurance, extended warranties, undercoating, paint sealant etc.. As the article here points out, that’s basically what’s happening in the electronics industry too. There are such small profit margins on electronics that stores have to find ways to upsell you on other products and services that normally have very high margins.
Anyway, check out the article. I think you’ll come to the same conclusion that I have. These programs just aren’t worth it. As a consumer, you shoulder all the risk and very little of the reward.