Lusting for iPad 2? Get top dollar for your iPad 1

Gazelle, a Boston-based firm formed by an Ex-eBay executive that specializes in buying used cell phones, is paying top dollar for iPad 1's.

Those of you who have an iPad 1 are probably feeling a little bit of gadget lust right about now. Heck, I'm feeling plenty of it myself.

Don't have the $499+ to spend on the new model? Gazelle, a firm out of Boston which specializes in purchasing used consumer electronics such as cell phones, is offering top dollar for iPad 1's. Gazelle was founded in 2006 by Israel Ganot, who cut his chops at eBay and PayPal.

I've heard enough good things about this company (they've got a A+ Better Business Bureau rating) that I'm even willing to put my own iPad on the line and ship it to them in exchange for cold, hard PayPal cash. I was originally going to give my old unit to my wife, but I think I'd rather finance the new model with the proceeds from the old one.

Selling your device is easy. You log in to their iPad landing page, select the model you own, the condition that it is in, and Gazelle ships you a UPS mailer box to pack your unit in to send to their Boston facility where they will appraise your iPad (if the device arrives in the condition of the initial price quoted, then you get that amount. If it's in worse condition, they'll quote you a lesser amount) and then provide you with your choice of payment options, with expected turnaround time.

Price offers from Gazelle can be locked in for 30 days. You have 5 days from receiving the final offer via email to either accept or reject it. If you don’t respond within 5 days, Gazelle will assume you’re okay with the final price quote. If you do reject, they’ll ship your iPad back to you within 3-5 days.

Concerned? Confused? The company has a comprehensive Help Page that will answer all of your questions about the process.

In addition to PayPal or business check as payment, they also offer Amazon or Wal-Mart gift cards. If you choose to go the Amazon route, you get an extra 5 percent. Alternatively, you can donate the proceeds to charity.

Also, even if you don't have an iPad, Gazelle buys a large number of other types of devices. so if you want to get rid of a few old cell phones or other devices that would otherwise take up landfill space, Gazelle will make sure they find good homes and/or dispose of them in a eco-friendly, responsible fashion.

Update: Gazelle tells me that these prices are going to drop this evening because apparently Apple has dumped a large supply of iPad 1's into the retail sales channel at reduced prices. So get your purchase commitment from Gazelle as soon as possible. Also, be sure to use bonus code "VIPad" during the checkout process in order to get an extra $5 on your appraisal.

Update 2: UPDATE ON iPAD PRICING FROM GAZELLE:

Initial offer prices quoted in the first draft of this article cannot be maintained through Saturday (if you’ve already locked in with an existing offer from Gazelle, you’re clear):

Two factors:

1) Price reduction. Apple announced the price reduction (which ultimately will drive pricing down in secondary market). The subsequent drop in pricing in the resale market normally doesn’t happen immediately, but they have to anticipate what will happen in a few days to weeks.

2) Trade-in volume. This will be the single highest trade-in volume in one day for any product ever. With, say, the iPhone, roughly 1,000-1,500 in one day drives down prices in 3-5 days… Gazelle has already seen thousands of trades within hours of the iPad 2 keynote.

The two factors are basically putting the resale market pricing chart in fast forward. Check here for current pricing: http://www.gazelle.com/ipad