Technology updates constantly, making it challenging (and expensive) to keep up with the latest gadgets. Here are a few ways to save on your next tech purchase without compromising quality.
How to Save Money on New Technology
Unlike a typical pre-owned item, refurbished products undergo a rigorous amount of testing before being sold, just like something right off the assembly line. Many times, they are sold with the same warranty as a brand new product, saving you a ton!
- Only 5% of returned electronics are defective.1
- People who choose refurbished items could save 28% on tablets, 40% on smart phones and 15% on laptops.
Pass on the Extended Warranty
Most gadgets come with a warranty, and the idea of an “extended warranty” may seem like a benefit to the user. For the most part, however, the store is just trying to make additional money off of the sale. Create your own extended warranty instead.
- Extended warranties accounted for $15 billion in revenue annually.2
- Over half of a major electronics retailer’s profits are from extended warranties.2
Avoid the Gimmicks
Some advancement in tech is as cutting-edge as it gets. As a result, many companies will create a “new” product with a higher price tag with no real increase in features. A recent example would be the curved TV. Do your research before you buy as the latest product isn’t necessarily the greatest and may not be worth the price tag that comes with it.
- 1 in 4 3-D TV users experienced some or all of the following symptoms: eye strain, headaches and nausea.3
- Less than 10% of TV shoppers said they would purchase a 3-D television in the next year.3
Expense Doesn’t Always Equal Quality
You can’t assume that the higher priced product is better quality. Make sure you’re not just paying for the brand name by comparing the specs of the products. Sites like CNET have hundreds of reviews and side-by-side comparisons to help.
40” LED 1080p smart HDTV
- Name brand: $429.99 – $479.99
- Generic: $199.99 –$329.99
Sell Your Outdated or Broken Electronics
Go for the one-two punch and make money while you save money. If you upgrade your gadget, sell your old one. Many stores will give you trade-ins for cash, or you can just sell them online. Even if they’re broken, they can be sold for parts!
Now you know the best ways to save money on new technology, remember the first way to save on new gadgets is to not spend it at all if you don’t need to. Make that purchase when you are fiscally prepared and when you have the need for it.
The market encourages us to buy the latest and greatest product, though the tech we already have might fit our needs. Make sure you assess the cost and the benefit of your purchase before you commit. If you are set on upgrading, research all options and find the one that best suits your needs. For example, you really want the accessibility and ease of streaming that smart TVs have. You could buy an entirely new TV, or you could take advantage of the more affordable streaming stick that turns any TV with an HDMI port into a smart TV.
If you’re interested in budgeting tips for all aspects of life, check out our latest monthly challenge.
1Austin, P. (October 20, 2015). Should You Buy Refurbished Electronics? Retrieved April 27, 2016, from http://www.consumerreports.org/cro/laptops/refurbished-electronics-buying-guide
2Chen, T. (December 2009). What Makes People Buy Extended Warranties for Consumer Goods. Retrieved April 27, 2016, from http://www.strategy-business.com/article/re00101?gko=85c1a
3Covert, A. (December 22, 2010). Survey says: We all hate 3DTV! Retrieved May 09, 2016, from http://gizmodo.com/5715891/survey-says-we-all-hate-3dtv