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The Benefits of Buying a New Older Model

Last week, people were all abuzz with the launch of the new Apple Ipad. My mum called to give me the news and I was like “ok.” But she was excited. You would not believe why. She was excited because the time was right for buying a new older model at a killer price. She does not care about the latest in the fan dangle hi-tech gizarble. All she wants, is to go on the Internet, browse a few sites and play games like Angry Birds.

When a new model of anything (tablet, car, phone etc.) comes on to the market, does that automatically mean that the prices of older models are drastically reduced? When I was younger, I was into magazines (I still am, but I can read the stuff online for free) and I was always a fan of buying old editions. I would attend fairs and hit the magazine section – where else could you get a GH magazine for fifty cents?

I think that as soon as a new model arrives, the older models should be sold in a ridiculous sale. For example, in this article on Phone Dog, it says that the price of the new Apple Ipad 3 can go as high as USD$729, and the price of a new Ipad 2 can run you about USD $400. That’s a huge price difference for minor differences that would not be a big deal to my mum.

I went digging and I found this old answer and question forum post. The poster asks what happens to older model cars when the newer models come out. The answer given was that the older models are sold very reasonably and you still benefit from the full warranty. The only downfall is that the car, because of its age, would depreciate quicker than a newer model.

Some quick research revealed that the same thing happens for phones. When a new model is released, the price of the older models are slashed. I think that’s the way to go especially, if you’re not too fussy about the features. You’re still getting a quality product at a great price and you can save some money.

What do you think about buying a new older model? Have you ever done this? If so, what was it?