Big items with poor resale value

secretwealth · Post by **secretwealth** » Wed Sep 05, 2012 3:34 am

What big (i.e., items not easily moved, like furniture and appliances) items tend to depreciate faster than others?
Is it the case that all big items depreciate quickly? Are there some items where investing in quality will offer a better return?
It seems to me that, at least when it comes to furniture, buying cheap or recently used tends to maximize value because of the steep depreciation curve.
Back story: We bought a way too expensive couch about a year ago and it really has fallen apart quickly. I'd like to replace it, but I think it's lost about 90% of its value (especially since price didn't equal quality in this case)

dragoncar · Post by **dragoncar** » Wed Sep 05, 2012 4:15 am

Where did you get it? This may be worth a warranty claim.

secretwealth · Post by **secretwealth** » Wed Sep 05, 2012 4:32 am

A no-name company, but, yeah--maybe I should work that warranty. I've never made a warranty claim before, which is pretty foolish of me, come to think of it.

jzt83 · Post by **jzt83** » Wed Sep 05, 2012 4:53 am

This is one reason why the apartment I recently moved to is very bare. I am not sure how long I will be living here, so I don't want to splurge on furniture. But the used furniture I have seen so far is just isn't my taste. I wouldn't mind splurging on a mattress and sofa but only if I know with great certainty I will be in the area for a long time.

Post by **jacob** » Wed Sep 05, 2012 1:52 pm

To keep its value, furniture has to be considered a classic, like cars. Such furniture is rather expensive.
The cheapest way is free. It's somewhat limiting though.
The next cheapest way is to buy old medium level furniture (better than furniture held together with dowels and tacks, I wont mention any four-letter manufacturers) that is resold at about what you sold it for. E.g. new price $800, your price $100, your selling price $80.
The third cheapest way is making your own. The advantage there is that you get to fit it completely to yourself and the room. Always wanted tables to be 1.5" higher and have one fit the wall between the doors? No problem.

Lorraine · Post by **Lorraine** » Wed Sep 05, 2012 2:24 pm

I think furniture that has been handcrafted or that is made from quality materials should hold their value (think antiques). My BF is a mover and is constantly coming across free furniture. We furnished our last house entirely with free furniture (including 2 brand new couches, one with the $1000 price tag still attached), and gave away or sold most of it when we moved.

indigo · Post by **indigo** » Wed Sep 05, 2012 2:55 pm

I like nice home decor. I work from home so it is even more important to me. I don't buy new furniture (except mattresses) as it seems a waste when you can get it used for 1/4 to 1/10th the price, and I have kids who can be hard on stuff. I have had the best luck just keeping an eye on craigslist by searching for brands that are known for good quality and design. I did this once a week or so for a couple of years until we had everything we needed. I also furnished a rental house this way.
The hardest things to find second-hand were nice side tables for the living room and bedrooms. The easiest were couches which people seem to change a lot.
Antiques are good but they do not always hold their value. I sold some of my grandma's stuff and did not get fantastic prices. I was told that the market for antiques has been shrinking, at least in Canada. Not sure why but may have to do with the number of moves and how heavy the stuff is as well as availability of cheap stylish furniture from sweden.

JohnnyH · Post by **JohnnyH** » Wed Sep 05, 2012 4:23 pm

Furniture has an insane markup and almost all of it (in US) is poorly made garbage... Too many people turned off by picking it up/moving it themselves and having it have been used. Used?! Gross! bed bugs are everywhere!... Don't you watch Dateline Katilsday?)
If you want some laughs go into a mattress store. $10,000 mattresses with payment plans... But delivery is free!
Value in this thread?: things to never, ever buy new?

m741 · Post by **m741** » Thu Sep 06, 2012 3:16 am

Never buy a car new

. I'd say that depreciates faster than anything.
As for furniture - cheap or upholstered furniture depreciates quickly. Well-crafted wood furniture should hold its value.

Ego · Post by **Ego** » Thu Sep 06, 2012 1:10 pm

Items that can fit in a car hold their value better than large items. Two smaller chairs resell better than a couch.

RecoveringConsumer · Post by **RecoveringConsumer** » Fri Sep 07, 2012 5:37 pm

At the risk of being a downer - even high-quality, well-made furniture doesn't keep its value. I've purchased Stanley and Henredon furniture for less than the price of IKEA, some pieces for less than the price of wood. Example: $5000 original retail armoire - custom cabinet maker (and my father's friend) estimated it was $600 worth of wood and 30 man hours - and I purchased it for $300 at a consignment shop.
Cars definitely depreciate
The biggest depreciation that I see is kitchen gadgets. Not those useful little things like wooden spoons - but deep fat fryers, juicers, ice cream makers... People spend $50-$400 at WS or a similar store, and then the charity shop sells it for $5-$10 when they finally realize theyve used it once...

Hoplite · Post by **Hoplite** » Sat Sep 08, 2012 11:35 pm

Most items are subject to plain old fluctuating supply and demand, and are at risk of substantial depreciation even without the physical risks. This article details the travails of some retiring boomers who found their supposedly investment grade stuff was worth a lot less than they had anticipated:

http://www.smartmoney.com/retirement/pl ... 517395843/