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Will Buying a Used Computer Save Money?

By Dan Albrich (dalbrich@oregon.uoregon.edu)

Many people assume that buying a used computer will save money, but this is not necessarily true.

For example, if you paid $3000 for a new computer a couple of years ago, you might think you're doing someone a favor by selling it for $1500 now. But unfortunately, that is not the case. In fact, a brand-new computer is likely to be on the market that is both better and cheaper than the used one you're offering at half price!

One example of this phenomenon includes the increased storage capacity that can be had for the same price over the past year. A year ago, a 2 Gigabyte hard disk would sell for about $150 from a mail order catalog. Today, you can buy a 10.1 Gigabyte disk--five times the capacity!-- for the same price. This price doesn't include professional installation or shipping charges, but it does give you an idea of how fast technologies change.

The role of high-density platter technology. It's also interesting to note that the 10.1 Gigabyte drive is faster due to new higher density "platters." Hard disks spin platters like a record player spins records. A "read-head," similar to a record player's needle, can read (or play) the data on the platter. If the old hard disk and the new hard disk spin at the same speed, the one with the higher density platters will be faster since more data moves past the read-head in the same amount of time. In addition, these new drives may actually be smaller than their predecessors and produce less heat, which means they're likely to work longer.

In short, it is highly unlikely that any used hard disk could be sold that would be a better drive than a new hard disk, or have a better price.

Price and Value

With technology items, there's definitely a price point that's optimal for a particular item.

Going back to the hard disk example, while it is true that you can buy a 10.1 Gigabyte disk for $150 today, this doesn't mean that a 5 Gigabyte disk would cost half as much. The 5 Gigabyte drive was very likely manufactured six months or more ago, and the price at that time might have been $220. If you buy 5 Gigabyte drive now, you would still have to pay around $200 dollars. The older, smaller drive is actually more expensive than what is in mainstream production now.

This is the case for most, if not all, technology. There is always an optimal price point during any given time, and it's a continually moving target. Luckily, the price will remain the same over time (or get cheaper). You simply get more for the same--or less--money.

Products that have followed this trend most dramatically are, of course, computers, and new popular electronics like digital cameras, camcorders, etc. The moral of the story is to take a close look at what is available new prior to purchasing used. While the newer-is-better paradigm definitely works for a new computer, it also works for hardware upgrades and software.

Upgrade Issues

Often, when you add a new device (like a video card) to a computer, a new "software driver" is required to use it. Software drivers are the necessary link between hardware and your operating system (like MacOS or Windows). Most vendors include a diskette or CD-ROM with the software driver that must be installed prior to using the new hardware. Unfortunately, in many cases the hardware vendors are in such a hurry to ship a new product that the driver's disk they provide doesn't work well, or at all. Check the vendor's web site for updates prior to using a vendor-provided driver's disk, and install the updated driver instead of the one provided on disk. In the worst case, the old driver must be removed prior to installing the update--a process which can be exceedingly arduous.

Other Factors to Consider

While buying new technology usually makes the most financial sense, many other factors may influence your purchasing decisions.

For one thing, not everyone needs an upgrade or would benefit from one. If what you have now works, you'll want to be careful about changing it. Other issues, such as the environmental impact of discarding nonreusable materials, may also influence your purchasing decisions.

On the other hand, if you must use a computer for work, you may eventually be forced to upgrade in order to continue to run the current versions of software used in the workplace. For example, there is no new version of Microsoft Office that works with Windows 3.1, so upgrading to a computer with Windows 95/98 may be essential to your continued ability to read documents created on another computer. (Prior to upgrading to Windows 95, be sure to check hardware compatibility carefully!)

Want Advice?

If you'd like help with your pre-purchase decisions, we'll be happy to assist you. Call our Microcomputer Support Staff at 346-4412 from 9 am - 5 pm weekdays, or send email to microhelp@oregon.uoregon.edu


Summer 1999 Computing News | Computing Center Home Page