When thinking of selling your old computer, ask yourself if you would buy it. If the answer is no, it is time to sell. More than likely, the reason that you would not buy your computer is because your eyes have feasted on faster machines with better technology hanging on them. The desire for more speed and a better or bigger monitor makes your current machine seem slow-and out-of-date.
The reality is that unless you bought you computer more than six or seven years ago, it is probably quite serviceable. Somewhere not too far from you there is someone who either does not have a computer or is using one that is a true dinosaur that a friend or family member gave to them. If your computer has the ability to do word processing and will connect to the internet, it can be sold.
If you think that you will get the new value of the computer, you will own it until it is crushed under the weight of the dust that will accumulate on it. The resale value of a five year old computer is about 1/5 to 1/10 of its new cost. So, if you paid $800 for it new, it will sell for about $100 to $150 at the most.
Because of this severe depreciation, many people elect to ride the same computer until the value is near zero. This way, it is thought that it is worth more to keep using the aging machine than to replace it with that much lost value. This argument makes sense if you do not need the additional functionality of a new computer.
The opposite side of this argument is that it is better to sell an old computer while it still has some value to pay toward the purchase of a new one. If you are planning to replace the computer within the next few months, then selling it now makes more sense. It will be worth less and less as each month passes.
The other thing to consider when selling a used computer is whether you have a real buyer or not. If someone is willing to buy it at a reasonable price today, waiting to sell it does not make sense. A buyer for a used computer can be tough to find at exactly the moment you choose to sell. In other words, get it while you can.
A general rule of thumb for people who want or need to stay relatively up to date with their computer hardware is to replace it every 2 to 4 years. Selling on the low end of this range will keep your resale value at near 1/2 of the original value if your equipment was leading edge when purchased.
If you bought the low-end hardware, it will be worth somewhat less because the gap between it and the latest equipment will be much larger. Computers tend to become cheaper as they become more technologically advanced.
In the end, when to sell your computer will depend mostly on you. Like a used car, if you are tired of it and want a new one, sell it now. If it is an old friend and you enjoy its quirks, keep it for a while and wait for a really big jump in innovation.
