Author Topic: Doesn't everything you buy depreciate faster than cars depreciate?  (Read 10805 times)

Bakari

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Re: Doesn't everything you buy depreciate faster than cars depreciate?
« Reply #50 on: September 22, 2016, 09:19:46 AM »
Android does not have anywhere near the deliberate planned obsolescence of Apple.

I got a iphone 3s when the 5 came out (free when someone upgraded), and learned that Apple actually required anyone who puts apps in their app store (the only official and simple way to get new apps) to NOT make their software backward compatible with older iphones.

Not to get even further off topic, but I am an app developer and this is absolutely not true.


I see upon further investigation that this is no longer true.  http://www.theverge.com/2013/9/17/4739962/apple-iphone-ios-app-compatibility-prompt.  Apparently I was trying in the 4-5 year window between when a newer phone came out and they finally changed the policy to allow apps that work with older phones to appear on the app store (and never thought to try again).  Just posting this so it doesn't look like I was just making stuff up - there really was a time when they made it impossible to get anything but the latest version, while requiring developers to update to the latest version.



Quote
Back to the topic of this thread, I think car depreciation is often exaggerated around here. Before I discovered MMM I purchased a slightly used Jeep Wrangler for about $26k. I drove it for two years, including all kinds of off-road adventures, and then when I discovered MMM I listed it on CL and almost immediately sold it for about $24k. That comes out to less than $100/month of depreciation, which I don't think is really that unreasonable for someone who is otherwise in a very good position financially (I unfortunately was not in such a position at the time). If I had held out a bit longer I could probably have gotten closer to $25k.


Emphasis added.  Most normal non-frugal middle class Americans buy new cars, and it is to those people that the depreciation.  Depending on the options, that Jeep may have cost as much as 38k when it was rolled off the dealer floor (MSRP of 31k, average paid of 30k).  The person who sold it to you ate the majority of the depreciation. 


What about jewelry (Diamonds!!!), good wine, guns and ammo? Do those things decline in value, appreciate or at least hold their value? I imagine some collectibles increase in value but are highly dependent on current collectibles market.
Jewelry and guns only as much as anything (cars, furniture) might possibly become a "collectors item" if kept in good enough shape for long enough, but even then its a gamble, and you'd pretty much have to never use them.  There are more reliable ways to get interest on your capital, so if you can't use the stuff buying it would be pretty pointless.


Ammo only if WWIII wipes out civilization and there are no longer any ammo factories. 

iris lily

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Re: Doesn't everything you buy depreciate faster than cars depreciate?
« Reply #51 on: September 23, 2016, 01:54:11 PM »
Jewelry does not hold its retail value, not at all, not even close. Sure there are a few exceptions for especially fine grade diamonds and vintage settings that have come back into style. But, my family had to wait 100 years for the family ring to approach "investment" return, and the stock market would have blown it out of the water in return rate, anyway.

A diamond engagement ring has similar depreciation walking out of the mall as does that new car.


 

Wow, a phone plan for fifteen bucks!