Guitar value depreciation

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wifiabc

New member
How much does a guitar depreciate in value per year? For example, if you buy a new guitar for $500 and sell it 1 year later, how much can you sell it for?
 
wifiabc said:
How much does a guitar depreciate in value per year? For example, if you buy a new guitar for $500 and sell it 1 year later, how much can you sell it for?
Click to expand...

There's no official second hand price, it's all a matter of demand and supply. A number of factors are relevant:

-Condition of the guitar
-Desirability of the guitar (limited edition? discontinued?)
-Upgrades?
-Included accessories?
-Price adjustments by the manufacturer

It's all economics and chance - post your advertisement and see if anyone responds. If no one does, you have the option of waiting it out or lowering the price. Don't forget that if you hold on to it for too long for fear of losing too much money, you could incur the opportunity cost of not having cash in hand as well :)
 
It doesn't work that way wifiabc,

It depends on Condition, Demand, and you gauge from there when you've decided to sell or trade your guitar.

generally it only depends on the playability and condition from when you made your purchase and continuity of the guitar. :)
 
what tubescreamer said is very true. certain models are in high demand thus even though u might have bought it 2nd hand at like $500, u might be able to sell it at a profit at the right time. depends on which model.
 
If you buy a squire affinity guitar, say for $250, it turns $0 the moment you step out of the shop. This is called "Full Value Depreciation".
 
the depreciation is at least 50 percent for lower end guitars, unless of course you have a highly sought after guitar
 
the first 5 years its paper value depreciate 5%-25%
after 5 years, 25%-80%, if not scrap by 10 years no resale/export value
after 10 years value start to appreciate, by 40 years considered vintage value

-
 
Must get those super weird shape, no one will buy guitars. Like the reverse V. Did they stop production of it? If they do, price will APPRECIATE 2x, 3x overnight! We call this "Value Appreciation Abnormality".
 
Guitars do not amortise over their useful life, at least not as significantly as motor vehicles in singapore, or electronic products. Rather, revaluation and impairment play bigger roles in affecting the second-hand value of guitars.
 
wifiabc said:
How much does a guitar depreciate in value per year? For example, if you buy a new guitar for $500 and sell it 1 year later, how much can you sell it for?
Click to expand...

There is the saying "Buy used, play for free". What it means is that if you buy used and sell it later at the same price, you would have paid nothing to play it during the time you kept it. It depends of course on how much it was bought for and how much it was sold, but the idea is that if you buy used you have a much better chance of not losing money. Something to think about if you are already thinking of buying something new although there is some risk of buying used stuff.

Factors on how much it depreciates have all been discussed by other forum members.
 
I had a pedal that cost me $500 and after 2 years or so I sold it for $250.

Had to consider the competitive prices others had and also the condition it was in.
 
Victorinox said:
There is the saying "Buy used, play for free". What it means is that if you buy used and sell it later at the same price, you would have paid nothing to play it during the time you kept it.
Click to expand...

I totally agree with this ^.^

There are way too many factors, and no fixed method to determine the depreciation/appreciation value of the guitar. For example a 1960s Gibby LP costs a bomb now, but you would probably need to pay someone to take a 40-year-old tgm guitar from you.
 
Victorinox said:
There is the saying "Buy used, play for free". What it means is that if you buy used and sell it later at the same price, you would have paid nothing to play it during the time you kept it. It depends of course on how much it was bought for and how much it was sold, but the idea is that if you buy used you have a much better chance of not losing money. Something to think about if you are already thinking of buying something new although there is some risk of buying used stuff.

Factors on how much it depreciates have all been discussed by other forum members.
Click to expand...

haha have u heard of the saying "buy used, get paid to play"? i've experienced it first hand. heehee. but the price was not decided by me though.
 
motor vehicle depreciation value to be taken with a pinch of salt
one buy used car if unlucky also must go send workshop for repair,

some prefer buy new cars, factory smell, no dirt, got warranty, freebies
and of course even luxury model sometime got recall back due to factory defect

one thing for sure, if buy car from showroom where every year got 50% discount sale
sure die one, when want to sell car no value, some even expect to give away for free hehe

:???:
 
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