How do guitars depreciate?

[Top-L]

Looking at new guitars released in last few years, you can usually find mint/used for 20% off new price ( which isnt much saving because you can get 15% off msrp most places.)

But i also know that guitars that are older can sell for 30-50% their msrp.

And then there are used guitars that keep their value or appreciate.

I havent figured out how it works. Imo, used value should be entirely related to condition, yet time is a larger component.

For instance a mint/nib that was never played, but sat under someones bed in a case, isnt going to be worth as much ten years later, even though the condition didnt change.

Anyone have a rough guideline for how it works?

 

[beaubrummels]

Most go down for the first 20 years, then start going back up after 20. There isn't a consistent ramp of depreciation because some models are more desirable and some aren't. Also the number made / available on the market vs demand plays a role.

Guitars that are 'player grade' can keep going down, and if they go up at all, will be somewhere around half or below half (depending on how f-ed up they are) of what clean/new condition ones go for.

Modifications will discount a smaller percentage of the value, even if it's an 'upgrade'.

 

[Mincer]

I don't know if there are any rules. If a player gets famous, what he/she uses goes up in value. Sometimes certain models get 'hot' and people start buying and selling. All it takes is a few people to pay a ridiculous price and value goes up. I don't think it has much to do with quality. Also, guitarists are generally brand snobs.

 

[Chris Pile]

Just like a car, a guitar depreciates the minute you walk out the door with it. And seriously - unless the guitar is really special, it's worth half of whatever you paid for it when you want to sell it.

 

[Mincer]

The only guitars that go up in price immediately are ones owned by legit rock stars...especially if used in iconic recordings or iconic photos.

 

[Rex_Rocker]

Depends on where you're trying to sell it too. Stuff goes for very different rates here than in my hometown.

And what brand. Gibsons sell for pretty much new price back in my hometown, which is ridiculous.

 

[ehdwuld]

The only guitars that go up in price immediately are ones owned by legit rock stars...especially if used in iconic recordings or iconic photos.

unless Josh at JHS uses it

he makes all the bargains go away

 

[Top-L]

unless Josh at JHS uses it

he makes all the bargains go away

I hate that I even know who this person is. Ditto for all the guitar gear influencers and 70s-circuit copiers.

 

[GuitarStv]

I have a rule that I only buy something I want to play . . . that way resale price doesn't matter.

 

[ErikH]

There's even examples of the exact same guitar within the same brand but a different color or graphic holding value or increasing. For example, an 80's Kramer Baretta with the Marilyn Monroe graphic will fetch more than the same model with a plain black or white paint job, or even say the Statue of Liberty graphic. My NYC graphic Baretta has the Twin Towers on it. No idea what it would fetch now but I know some collector of vintage stuff with that on there would probably pay me a good bit.

And then there's the Hello Kitty Squier Strats. Have you looked at what those sell for on the used market? And people are playing them. Perfect example of it not being a top level brand but a model that people want. And Josh didn't even have to touch it......LOL.

 

[Napthol]

Just like a car, a guitar depreciates the minute you walk out the door with it. And seriously - unless the guitar is really special, it's worth half of whatever you paid for it when you want to sell it.

Exactly. When I got into trouble when I was buying too many guitars and ending up selling them, just to get them sold I easily lost at least $300-400 or more on each one. I only actually made a profit off of one of them.

 

[Gstring]

It's probably all about how rare and desirable the guitar is . Many years ago I was heart broken when my car was stolen. Not so much the car but my beloved South Korean made Washburn W116PRO was in the back .The guitar was out of production and it was a few years before I scored a replacement for a bargain price. I wrote about it in this thread.

https://forum.seymourduncan.com/for...last-found-a-replacement-for-my-washburn-idol

Around 6 months ago one (2006) came up on ebay . Thought it might be very nice to have second one as a backup so put in quite a reasonable bid but was well under . It went for over twice what I paid for mine 8 years ago.

 

[GuitarDoc]

There are essentially 2 factors involved which determine price:
1). Supply: If there aren't many available, they will usually be worth more (all else being equal).
2). Demand: If lots of people want a particular item, the cost will go up.
Of course condition is a factor which will affect every other factor.

 

[Securb]

I have a rule that I only buy something I want to play . . . that way resale price doesn't matter.

I agree with Steve I do not buy guitars as an investment. However, my Gibsons have retained price fairly well or have gone up in value. I am sure I could get well beyond the $375 I paid for my Iceman in 1980 even though it is heavily modded and very far off from original. My Midi Parker and Ovation Deacon are well beyond what I paid for them in value. However, the Parker has yet to reach it's original $3999 price tag. I paid $800 for the Parker seeing it was priced incorrectly, same with the Ovation I got for $550.

 

[NegativeEase]

they never depreciate if you never sell them

You can bet that every new guitar (unless is a low batch run collectors thing) falls 10-20% under MAP which is 30-40% below MRSP the moment you walk out the door of a store

 

[beaubrummels]

There are essentially 2 factors involved which determine price:
1). Supply: If there aren't many available, they will usually be worth more (all else being equal).
2). Demand: If lots of people want a particular item, the cost will go up.
Of course condition is a factor which will affect every other factor.

There are only 2 factors, ...except when there are 3 factors, ...and then they multiply.

 

[Gstring]

Just something else which might be relevant. A luthier acquaintance of mine sometimes thins down his collection and always gets top dollar or above but is in the fortunate position of having a friend who owns a guitar shop. Although his guitars may look a tad pricey on paper, once people pick them up and appreciate the immaculate frets, rock solid tuning,play-ability and sound it makes a big difference.

 

[Phantasmagoria]

The 3 Ibanez Sabre's I just bought were all absolutely mint for about half their original price (not sure about the S09LTD1, cuz I can't find it's original price) with one of them (S520BBS) being less than a year old..

With new guitars here, especially anything cheap/mid-priced, the value drops like a stone (40-50%) the moment you buy them. Top shelf Gibson's, PRS's or Fender's, those tend to hold their value much better. I'm currently negotiating with a seller to buy another mint Ibby (...not a Sabre lol) ; so far it looks like I will again end up with it for 45-50% of the original cost. I'm not even haggling just asked him to spring for shipping. since he's in a different city... which he has agreed to do

Right now It makes a hell of a lot more sense buying used locally here, things have never been so good.

....by and large the guitars are well looked after and apparently hardly even played at all...even the cases look mint :laugh2:

 

[ehdwuld]

The 3 Ibanez Sabre's I just bought were all absolutely mint for about half their original price (not sure about the S09LTD1, cuz I can't find it's original price) with one of them (S520BBS) being less than a year old..

With new guitars here, especially anything cheap/mid-priced, the value drops like a stone (40-50%) the moment you buy them. Top shelf Gibson's, PRS's or Fender's, those tend to hold their value much better. I'm currently negotiating with a seller to buy another mint Ibby (...not a Sabre lol) ; so far it looks like I will again end up with it for 45-50% of the original cost. I'm not even haggling just asked him to spring for shipping. since he's in a different city... which he has agreed to do

Right now It makes a hell of a lot more sense buying used locally here, things have never been so good.

....by and large the guitars are well looked after and apparently hardly even played at all...even the cases look mint :laugh2:

this was my understanding as well

I bought a 2013 MIM Strat back some years ago that still had the plastic on the pickups and back plate
for about half of the new price. and this was at Guitar Center on their used rack.
I am sure they gave some poor soul a fraction of that when he brought in that Christmas Present

I believe the Gibson and PRS high dollar ones hold value much better
some even go up over time

but those that us basic players get probably not

 

[Phantasmagoria]

Haha ...here in India people have a fetish for perpetually leaving plastic covering's of every description on stuff. Furniture, car seats, TV remote's etc...you name it. You can bet the sheeting/covers are still on them 10-20 years down the line ..so that's not really saying much

All three of my new Sabre's had the plastic still on their backplates..two had them on at least one of the pickups, and one on the truss rod cover... :laugh2:

No. I meant the finishes were all immaculate. Hardware/pup's showed literally NO sign of wear ..stuff like that. They literally looked like new guitars.

I, on the other hand, can't wait to get rid of all the plastic sheeting on my guitar's when I buy them. It's pretty much the first thing I do after I take them out of the box.

It would be terribly disappointing/heartbreaking for anyone else here if I ever sold them a guitar of mine (minus all that plastic) :lmao: