Depreciation/used prices on everything gun related

[MrWesson]

After 10 years in this I am curious to hear opinions on this.

I buy a TV and sell 1 month later and take a 50% hit. Same for cars and just about everything else.

10yr old eotech goes for 80% of new,15 year old glock 22 400,5 year old glock 22 $400,used mags go for near retail,scopes and you name it. I know demand is high now but this isn't something new.

So the question is why doesn't depreciation affect this market and hit others so hard? Not really complaining just a thought.

 

[Schwing]

I like to use the term "Intrinsic Value" to things like guns. This seems to apply to any item whose purpose and function do not change and whose value seems to adjust automatically for inflation.

Something like a TV does not have the same intrinsic value because 15 minutes after you buy it, it is obsolete with 10 newer models behind it that fill the same function only do it better. If you take a tv from 1980, you can't even use it today. Almost all electronics are going to have this downfall. Yes, guns change and get better (not always) but then you get into collectable status which helps them keep or even increase their value.

Gold is the ultimate example of an item with intrinsic value. If you go back to say 1850, 1 ounce of gold would buy you a couple of good suites and a night out on the town... Fast forward to 2013 and an ounce of gold will buy you a couple of good suites and a night out on the town.

 

[Ryanxia]

Americans always want guns
Not to mention something like a tv/car most people sell their old one when they get a new one, with guns a lot of people just keep adding to their collection.

Then you have guns that go up in value because of import laws/availability; imported AK47's, SKS's, FAL's, etc. as well as people sporterizing a lot of the classic bolt imports.

My 2 cents anyways.

 

[Outlaw Man]

I don't know what you're talking about. I saw a used M&P 45 at Gander Mountain the other day for more than either of the new ones.

Apparently, they increase in value.

 

[wally]

I saw a used M&P 45 at Gander Mountain the other day for more than either of the new ones.

Perhaps it was the somewhat uncommon model with two factory S&W barrels, one "normal" the other longer and threaded for a suppressor. If the new ones were the standard normal barrel only models this could be the explanation.

 

[TonyDedo]

Life span is part of it. What's the lifespan of a TV? What's the life span of a car? What's the life span of a 1911?

My TV is 3 years old. My car is 10 years old. My 1911 is 70 years old.

Guess which is the most reliable...

 

[longknife12]

Old Winchester steel has never let me down!
Dan

 

[newfalguy101]

Unlike your two examples, guns are not full of "consumable parts", in other words, by and large, even inexpensive guns, are built to last a lifetime, and with reasonable care will last a lifetime.

The biggest thing that kills a firearms value is cosmetics, two otherwise identical guns, one with a worn finish and various "character marks" and the other that still looks factory fresh, will have a considerable difference in perceived value and price.

 

[jmr40]

Guns do lose value in many ways, some a lot more than others. I've found that a used gun will generally be worth somewhere between 50-75% of what a comparable new version sells for. Some budget guns will continue to drop in value eventually being far below that 50% range, while some better quality guns will maintain more than the 75% number. This isn't set in stone, but I've found it to be pretty accurate in placing a value on used guns.

The good news. In 1975 I paid $175 for my 1st rifle, a Remington 700. A new 700 is around $800, so even at 50% my gun should still bring around $400 and net me a small profit if I were to sell it. Not as much as if I'd put the money in the bank for 40 years, but I'd be better off than spending the same $175 on a TV in 1975. A 40 year old TV would not even be compatable with modern technology even if it still worked.

Guns also tend to reach their lowest price point fairly fast, and hold at that point. I almost never buy new because of this. I can almost always sell a used gun for almost exactly the price that I paid for it. If I buy a gun new, I'll probably have to keep it at least 10-15 years to sell at a point where I can break even.

 

[rcmodel]

TV's are consumer electronics, just like cell phones and PC's.

A newer, better one, with slicker advertising already came out before you got the new one hooked up to a wall socket.

A new car is worn out / rusted out after 200,000 miles almost no matter how much care you give it. And like TV's and cell phones.
New models come out every year, and You Can Tell The Difference in gas mileage, performance, safety features, interior appointments, etc.


Guns don't change much, and an early Glock or S&W, or Colt is likely to be a better Glock, or S&W, or Colt then a brand new one.

Thus, they hold value far longer then disposable consumer items like TV's, cell phones, and other stuff.

rc

 

[Apuuli]

The good news. In 1975 I paid $175 for my 1st rifle, a Remington 700. A new 700 is around $800, so even at 50% my gun should still bring around $400 and net me a small profit if I were to sell it.

Taking inflation into account, $175 in 1975 is the same as $760.71 today (pretty much the price of a new one you quoted). So you will not be making an actual profit if you sell it for $400, but you will have enjoyed that gun for 40 years for very little cost.

 

[huntsman]

Guns always lose value when I'm selling and rise in value when I'm buying.

 

[Lex Luthier]

I have been buying and selling music gear, weapons, antiques, and about everything else for twenty years. Sure, some big brand names may bring a little more, but generally speaking, most durable goods rarely see a large used price margin unless the buyer has a particular interest. Actually it is smarter to keep some stuff tucked away for a rainy day and just wait. Also too many old geezers try too hard when negotiating and that just pi@@es me off.

I was officiating a huge estate sale a few years ago. This one old cowboy (who was an expert and told me I had everything marked up too high) kept nudging me on little piles of tools. I stopped the whole show and offered him the ENTIRE GARAGE for a paltry sum. He balked, because he wanted to be in charge of the deal. I asked him kindly to leave. I do not mean for this to be a rant, but many bidders are just in it to be grabby jerks. I have even paid extra for a thing if I knew the money was going to extra helpful for the seller.

Over the long run, the good deals definitely get the better of the bad ones. The trick is to not get your undies in a bunch when you fail to maximize your profit on a single piece. Surely some other tchotchke will find you and fill the emotional void.

 

[Phaedrus/69]

Firearms change very little from year to year (despite marketing hype by gun makers), at least compared to consumer electronics. A 10 year old firearm is still practically SOTA, with very few technical differences from a brand new one. A 10 year computer is a paperweight- even if it still functions it probably can't run any software or OS released in the last six years. Same for TVs. All TVs now sold are HD, a completely different and incompatible format vs older sets. You'd have trouble giving away a 10 year old tube TV now, even if you offered free delivery.

Guns are also a lot more durable than most consumer goods. Plenty of 100 year old guns can still be safely used (so long as the proper ammo is available). Not a lot of 100 year old cars still serviceable!

 

[MrWesson]

All valid points and I almost didn't post the guns as an example.

Explain Mags,Scopes,Eotech type red dots,lower receivers,trigger parts,stocks,clay throwers,shooting rests,reloading presses,etc

Its not just the guns that barely depreciate.

 

[bushmaster1313]

An economist would call it an "efficient market."

 

[yzguy87]

A lot of guns increase over time. For example I wish I would have kept my PSL that cost me $685 shipped and transferred to me:banghead:

 

[FROGO207]

Some items we consumers tend to place a premium on. So these same used items tend to hold their original value well. The firearms/related and gold examples are good ones. Neither one of these will loose much value if tossed in a drawer and forgotten for decades if stored properly.

 

[huntsman]

So the question is why doesn't depreciation affect this market and hit others so hard?

because for a certain segment of the male population guns are the ultimate boy toys and that leads to competition, pride, envy and higher prices.

 

[Ryanxia]

Let's not forget things like gun control can affect the perceived value.

 

[Jim Mac]

Dont mistake asking prices to selling prices too. Alot of guys have this idea thier junk is worth gold. My other hobby is muscle cars. Those prices tanked in the early 70's with the gas shortage, but try to buy a matching numbers LS-6 chevelle and see how expensive that hobby is. Heck price a clean rust free 70 chevelle and these are actually selling. jim

 

[barnbwt]

Does anyone remember the '90s? I barely remember Pa's computers going utterly obsolete within 6mos-1yr like clockwork. Even now, a five year old cell phone or laptop is at least serviceable, if not sprightly.

So the question is why doesn't depreciation affect this market and hit others so hard?

Because guns and ammo are durable goods. I hate the anti refrain "guns don't wear out" because they can and do, but there is a lot of truth to it as far as markets. Guns can wear out, but the vast majority won't, and most are basically a commodity (polymer striker-fired 9mm's are all but parts-interchangeable these days as far as quality and reliability).

Imagine how slow used cars would depreciate if the average Corolla had an expected service life (not functioning life) of 50-70 years and a warranty to match --like a gun . Guns are as durable as any industrial product made, and yet so many (sadly ) see no significant use for decades.

TCB

 

[Cee Zee]

I don't believe I own a single gun that wouldn't sell for more than paid for it. Some have doubled in price and that's in a time frame that makes them far exceed the rate of inflation. In other words they are worth more in inflation adjusted dollars than they were when I bought them.

And that doesn't just apply to high quality guns either. I bought a Raven semi-auto .25 back in the 70's for $50 I think. It might have been $75. But I've seen the same pistol for sale for around $175 now. That's nearly identical to the inflation adjusted price. And that's one of the worst POJ guns you can buy (although mine shot extremely accurate for a long time - until I figured out how to break it down to clean it and now it won't hit anything). If that pistol can hold it's value anything can. Most of my guns are much higher in inflation adjusted dollars. For example both my Sig pistol and my S&W revolver are about 20%-25% above the inflation adjusted price. That doesn't make them a really good investment until you consider how much fun I've had with them. The idea that I can have that much fun and then make a 25% profit adjusted for inflation is just great IMO. The actual profit would be about 50% on my Sig.

 

[Detachment Charlie]

When most were buying gold & silver, I plunged into lead and brass. I landed with my butt in the butter tub. Also,very early on I had a major, major score of cheap primers. I've done rather well with my investments.

 

[Mike1234567]

Electronic devices get better and cheaper every day. Older electronics become obsolete very quickly so they lose their value. Mechanical devices, such as guns, stay pretty much the same but material and labor costs keep rising so older guns depreciate far less... or they increase in value.