Why Is Amazon Paying So Much For Your Used iPad 2?

With the new iPad 3 now officially announced and set to arrive at the first customer doorsteps in less than a week, the current iPad (iPad 2) is starting to flood the the second-hand market.

Amazon paying up to $320 for a used iPad 2

If you’re in the same scenario and wish to dispose of your iPad 2 before upgrading to the new iPad, you would have checked out options such as eBay, Craigslist and Gazelle. If you haven’t, here is the current prices offered for a base working iPad 2 16GB WiFi-only model with normal wear and tear:

NextWorth is ready to plop down $241, BuyBackMac is at $224, eBay Instant Sale on $200, and Gazelle at a ridiculously low $185. However Amazon is sitting on top at  and offers $288. And if you have a like-new condition iPad 2, Amazon is ready to give you $320! Now that is very high given that Apple has already marked new iPad 2 models down to $399.

So how is Amazon capable of paying you so much? There’s one catch – they won’t give you case but instead Amazon credit. So what this ultimately means is you will be putting your $288 or $320 back into Amazon.

If you’re a frequent Amazon shopper then this should still be a good deal for you. For the rest of us, we may need to take a bigger hit with one of the other alternative shopping sites.