On the journey of wealth building, it’s important to understand the difference between assets and liabilities. While this post isn’t a lesson on the difference between the two, I’ve learned that reselling old stuff that you no longer use can be a great way to make some extra money with minimal effort. You’d be surprised at how much money you make if an item is deemed a collectible or vintage. But more often than not, your stuff have lost a considerable amount of value from the time of purchase. Here are 5 items that depreciate in value pretty quickly.
This is one that many people may already know. The amount a new car depreciates is dependent on factors like make and model, and gas mileage. According to Trusted Choice, on average, a new car loses 11% its value soon as you drive the lot. After 1 year, the value drops by 25% and approximately 37% after 5 years. This is why most financial savvy people opt to buy used instead of new.
With Divorce statistics so high, especially in the US, a lot of people are learning just how much jewelry depreciates. According to SmartAsset, a half-carat diamond ring, which might cost $2,000 at a retail jewelry store, could be sold back to a wholesaler for only $600. That’s a depreciation of 70%. SmartAsset also states that there’s generally a 100% – 200% markup on the retail price of a diamond, most stores won’t even buy back diamonds from consumers
With all the software updates and how quickly technology is advancing today, new cell phones are seemingly obsolete months after the initial purchase. According to Decluttr, Both the iPhone 7 128GB and the iPhone 6 128GB lost around 60% of their value in a year…The Samsung Galaxy S8, by comparison, has lost 80% of its value since its 2017 launch. BankMyCell have entire reports on the price drops and depreciation value of cell phones.
Some brides to be may loathe this one, but did you know you know there’s a market for secondhand wedding dresses? Brides may drop a fortune on a wedding dress that they’ll only wear once. But the value of that dress drops significantly after that one time use. Preownedweddingdresses.com provides a calculator to help estimate how much a worn wedding dress is worth. They lose about 50% of their value after being worn.
Gamers know this one all too well. (Insert meme or Instagram post) game series that have yearly releases(sports games like Fifa and NBA2k) have especially steep depreciation.
Some of these items are things that you may already have or plan on purchasing some time in the future. If you are looking to avoid spending too much on depreciating assets, keep these 5 items that depreciate in value in mind and shop around for a good deal before spending.