Applecare on almost new iphone 4; resale value

[Peterg2]

In June this year I had my iphone 4 replaced due to a faulty proximity sensor (my second one with that problem). The replacement was not a 5K but one seemingly new or remanufactured in April this year. This phone has been perfect. This phone is very important to me and my warranty is expiring very shortly. I have looked at all the threads here and elsewhere regarding Applecare.

I normally despise extended warranties as they are enormous cash cows for the underwriters and the companies offering them. Future Shop comes to mind.

However, despite having Amex Gold "warranty doubling", I do feel that Applecare may well be worth it in that if I have a problem with this phone, say dropping it and shattering the screen, Applecare will enable me to go into my local Apple store and get a refurbished phone for $199 whereas with the Amex coverage my phone will probably have to be sent in somewhere for repairs and I will be without a phone. Same thing with other problems in that I do not foresee myself being without a phone for more than a few hours as opposed to Amex coverage.

I am not sure if I will get the iphone 5 in say a few months and I am thinking that for the first time I might just sell my phone if I do (I have an iphone 3G in fine order still) and wondering whether Applecare would add say at least $50 to the resale price. It would to me if I were to be a buyer because I know that if the phone that I was sold was actually faulty I could go straight to the Apple store and get a proper replacement.

Any thoughts on this?

 

[wordoflife]

[...] I do feel that Applecare may well be worth it in that if I have a problem with this phone, say dropping it and shattering the screen, Applecare will enable me to go into my local Apple store and get a refurbished phone for $199 ...

You pay $199 to replace an iPhone if you void or do not have warranty. If you drop your phone and shatter it, you automatically voided the warranty. Likewise, if you your warranty ran out and you did not extend, then you will still pay $199.

 

[Peterg2]

You pay $199 to replace an iPhone if you void or do not have warranty. If you drop your phone and shatter it, you automatically voided the warranty. Likewise, if you your warranty ran out and you did not extend, then you will still pay $199.

Fair enough. I have always understood that having Applecare may result in a genius being more sympathetic and I have heard of cases of people who, on dropping the phone and shattering the screen getting their phone replaced gratis. Clearly, this is not covered by warranty.

In any event, for other problems like faulty home buttons etc Applecare will result in one getting a phone swapped out on the spot as opposed to say with Amex where I might have to have my phone sent in.

I suppose in my post I am trying to justify the idea of purchasing Applecare.

 

[aneftp]

fyi. U need to read the fine print with extended credit card warranties.

They are great for original exchanges and I have used them.

However will find urself running to problems with credit warranties trying to exchange a phone that has already been exchanged.

Credit card warranty usually pertain to original equipment. Once your original phone has been exchanged they may not consider that phone as originally

 

[Peterg2]

aneftp,

Thanks for the reply. I suppose one issue now is would you feel that if you were buying an iphone 4 via say craigslist you would pay extra if you had applecare coverage for 9 months?

 

[dsquared81]

Just to add to this discussion I'll give you an idea of what the list prices are for Iphone 4's in my area (LA/OC Southern Ca) on Craigslist. Granted list prices aren't always final selling prices but it will give you at least a baseline to consider each type of phones perceived value from a selling standpoint.

Assuming all are iphone 4 32gbs, black, with box, accessories, etc:

Brand new (warranty has not been activated): $600-700
Like new (assuming within warranty period, i'll ask for the serial number to confirm): 500-600
Like new/used (past warranty period): 400-500

Now there are always exceptions but these are my observations for the last few weeks looking to buy a used Iphone 4 to get me by until the 5.

I went with a used one and bought it for 400. It might have been a risk since it didn't have a warranty/Applecare but I've had a pretty good track record with my iphones and I couldn't justify spending an extra $100-200 just to make sure I had a warranty.

Since the value of Applecare/warranty is so subjective, I can only tell you that for me if there was a difference of $50 between a phone that had applecare and one that did not, I'd seriously consider buying the one with it for $50 more. Provided that I was going to keep this phone long term.

For me though, my purchase is a temporary one, I'm going to flip it when the 5 comes out.

I know I'll take a hit on it, but for now I just wanted the best price for an iphone 4 to hold me over.

So bottomline, for an extra $50 I'd think about it.

 

[aneftp]

aneftp,

Thanks for the reply. I suppose one issue now is would you feel that if you were buying an iphone 4 via say craigslist you would pay extra if you had applecare coverage for 9 months?

Applecare/phone with warranty still left will add value to your sale.

Always mention that your phone as a warranty expiration date of xxxx date. Buyers will value your ad more than others who claim "brand new" iphone. When in fact it's a refurbished iphone (which is not brand new) and that refurbished iphone has zero warranty left.

There's a so many shady sellers on craigslist. So make your ad stand out. Tell them you want to sell your iphone 4 for "x" amount. Tell them the reason why you want top dollar (aka...that your iphone still has warranty left). It will give the perspective buyer peace of mind knowing the iphone is covered under warranty.

The shady sellers on craigslist hope there are idiots out there who will buy there stuff. Unfortunately we have a lot of idiots in the world today.

Just make your ad look more attractive to a perspective buyer.