Understanding Depreciation of Gadgets - When to Upgrade Using EMI

Gadget depreciation refers to the gradual decrease in a gadget’s market value after it has been purchased. It can also indicate when it would be beneficial to switch to a new gadget. This blog explains what gadget depreciation is, the signs and timelines for upgrading, and practical ways to upgrade to a new gadget using EMI. Read on to know more.

What is Gadget Depreciation?

Gadget depreciation is the reduction in the value of an appliance or device from the moment you purchase it. Smartphones, laptops, and tablets usually lose value quickly due to factors like technological advancements, wear and tear, and the launch of newer models.

Understanding gadget depreciation is important for several practical reasons. For instance, the typical depreciation rate for a new smartphone can be 40-50% within the first year. This reduces its potential resale price. Hence, holding onto a device for too long can mean its resale value becomes negligible.

Also Read: Top 5 Smart Gadgets and Appliances to Buy on EMI

When Should You Consider Upgrading?

Here are a few indicators that your gadget may be nearing the end of its life:

●    Poor Battery Life: The battery drains much faster than it used to, often not lasting a full day even with light use.
●    Slow Performance: The device lags, freezes, or takes a long time to open applications and perform basic tasks.
●    No More Software Updates: The manufacturer no longer provides operating system or security updates for your model, leaving it vulnerable to security risks.
●    High Repair Costs: The estimated cost to repair a malfunctioning part is more than 50% of the value of a new, comparable device.
●    Change in Needs: Your current device no longer meets your requirements, perhaps due to a new job, a hobby, or advanced software needs.

Also Read: Access the Latest Tech With a Gadget Loan

General Upgrade Timeline for Common Gadgets

While personal usage varies, there is a general timeline for when it becomes practical to upgrade common electronic devices. Upgrading within these windows often provides the best balance between cost and performance.

How to Upgrade Gadgets Using EMI

Upgrading gadgets using EMI is easy when you finance your purchase through a Consumer Durable Loan. This allows you to split the cost of the device into manageable monthly payments, making it more affordable.

Steps to Apply for a Consumer Durable Loan

A Consumer Durable Loan is designed specifically for purchasing electronics and home appliances. Here’s how you apply for this loan:

●    Visit a Partner Store: Start by visiting a Poonawalla Fincorp authorised retail partner. Select the gadget or appliance you wish to purchase.
●    Check Eligibility at the Store: The store representative will help check your basic eligibility, such as age, income, and credit profile, as per the lender’s criteria.
●    Submit Basic Documents: Provide identity proof, address proof, and income details. Verification is usually done quickly at the store itself.
●    Instant Approval and EMI Selection: Once details are verified, loan approval is processed instantly. You can choose an EMI plan that suits your budget.
●    Complete Purchase and Start EMIs: Once approved, the loan amount is paid directly to the retailer. You can take your gadget home immediately and repay the loan through monthly EMIs.

Also Read: What is a Gadget Loan?

To Conclude

Gadgets depreciate faster than most people realise. Keeping track of performance issues, rising repair costs, and software support helps you decide the right time to upgrade. By timing your purchase well and spreading the cost through EMI with a Consumer Durable Loan, you can enjoy the latest technology without making a large upfront payment. For instant fund needs, you can also opt for Poonawalla Fincorp’s Instant Loan online option and upgrade your obsolete gadget.

FAQs

How fast do smartphones depreciate?
Most smartphones lose their value by 40-50% during the first year and a lot more in the second year, depending on the brand, model, and condition.

Is it better to repair or replace a gadget?
It is advisable to repair if it is not expensive and the gadget is still receiving software updates. But it’s better to replace a gadget if repair costs are close to half the price of a new device or if the device no longer receives software updates.

Can I get an Instant Loan online for gadgets?
Yes, a number of lenders and NBFCs provide instant online approval for the purchase of gadgets and other consumer durables, with funds disbursed quickly after the verification process.