The majority of products that you purchase during your lifetime lose value at some point down the line, but there are some that drop in price immediately after purchase. It is those things that we are going to be focusing on in this article.
Of course, if you are purchasing something for an investment you could always buy silver, gold, classic watches or other similar items. But many of the things that lose value quickly, unfortunately, happen to be the same things that are the most useful to us.
You have probably heard the old adage that new vehicles lose half their value as soon as you drive them off the forecourt. Actually, this tends to be around 35-40%, but this is still a significant loss which applies to just about any vehicle. This is why it is usually the financially savvy choice to go for a quality used car.
Just as cars lose a huge chunk of value after you drive them away, the same applies to jewellery when you take it from the store. Only this time, the loss is often even greater, easily exceeding 50%! This is because of the huge markup that jewellers put on the items. Of course, there are always some exceptions like the classic watches we have already mentioned, but generally the loss is significant.
With the pace at which technology moves, it is no wonder that electronics lose so much of their value so quickly. For example, what do you think a DVD player is worth now – or even a VHS?! This is why always buying the latest product is never the financially sound option. Unless it is a huge upgrade on what you have at the moment, it is probably worth waiting for a little while until you can really notice the difference.
The fashion industry is one which purposely moves at a rapid rate, encouraging people to buy what is ‘in style’ and mocking them for being out of touch. The moment you put on an item of clothing, it will lose a significant chunk of its value. So, it is worth investing in practical items that will last you in the long-run – or ones that you can wait for a few years for them to come back into style once again!
We have already talked about electronics, but the value-losing property also applies to video games, books, DVDs and CDs. Of course, you may still be able to get some sort of price for them, but this has dropped significantly in recent years and they are only set to continue their downward trajectory. But, there is something ‘classic’ about still having these items in your home!
These are a few of the things that lose significant value from the moment they are purchases. Of course, they are essential for most people, but knowing how much is lost may encourage you to be a little savvier in the way you spend your money.