How Much Is _____ Worth?

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There are many prospective sellers and buyers post asking about how much a 2 year old this or a10 year old that is worth.

First the value of a used item is often greater to the current owner than the item’s market value or the item’s value to the prospective buyer.

Let’s try a car anology. According to a couple of sources, on average, a car loses between 15% and 25% of its market value each year. After 5 years the market value is, on average, 37% of its original market value. Naturally wear and tear play a major role in value to prospective buyers. Based on condition there is another significant drop in market value in the 6th year.

Based on this analogy a 2 year old item in like new condition might be worth 70%, or less, of what it cost new. Start deducting for wear and tear.

A10 year old item in good condition? Would that be 10% or 20% of what it cost new? Maybe less? Maybe more? I can’t answer that question.

But I can assure you that the value is exactly what the buyer is willing to pay and the seller is willing to sell. The value is no more or less.

So... what do you think? Please leave me a comment.

3 Comments:

  • Vale: Do you think that some kayaks hold their value more than others, especially if they are kept in good to excellent condition?
  • Daniel: Vale,
    Yes, I think some kayaks hold their value better than others. Especially if they are kept in good to excellent condition.
    For example, I think a fibreglass sea kayak by a reputable manufacturer holds its value better than a big box store recreational kayak. I also believe the perception of the manufactures brand name and even the kayak designers name influences value as well.
    People seem to forget, in a free market system value is equal to what the buyer is willing to pay. Not what the seller wants to sell It for.
    It all comes down to how you, the buyer, feel about spending x dollars. The buyer has to determine value for themselves and how much they are willing to pay for that value.
    My budget can’t support $3,800 for a composite kayak. Would I feel good buying a several year old composite kayak in the model I wanted and in excellent condition for $1,500? Yes I would. Would I try my best to buy it for less. Absolutely!
    At $2,000 the kayak would be of no value to me. Its beyond the price I’m willing to pay for that used composite kayak.
    Sorry I rambled on a bit.
  • Vale: I agree, I’d probably prefer to buy used if the one I want new is too much! I also think it’s a good idea to find a manufacturer that has a good reputation but is not a huge name brand that would cost more to cover their costs of advertising :)

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