How to Know the Value of Your Used Computer

That used computer has been such a friend to you. It is worth every penny you paid for it two, five, or seven years ago. Now, you are ready to sell it. As you recall how much you spent to get it, you wonder what someone will pay for it today? Maybe you are used to selling cars. After five years, most cars will be worth about 1/3 to 2/3 of the new price if it has been taken care of. New cars have gone up in price and this gives extra support to the used value of a car.

Welcome to the world of computers. Every year computers become more powerful and cheaper per unit of power. This means in five years, new computers run many times faster than yours and cost less than you spent five years ago. The combined force of these two facts means that the value of a used computer drops faster than a rock into a black hole.

If you bought a state-of-the-art system, your computer has lost value at the rate of about 35% per year. Let's do the math. After one year, a computer that costs $1,000 will be worth about $650. At two years of age, it will be worth a little less than $400.

After three years, you may be able to get $250. When four years have passed, the price will have fallen to about $175. At this point, you will get a little break. Most people who want a used computer need it to learn about computers, or they are looking for a cheap one for a child going off to college. The value will settle in to a range between $100 and $150 for the next two years.

After that, it will be worth maybe $50 to $75 for another two or three years. At this point, it really turns into a machine for parts. A lot of things come into play beyond the five year mark. If you were unlucky enough to buy technology that was on the verge of becoming obsolete, your computer could be headed to the scrap pile by the five year mark.