Last Updated on January 24, 2023
We all bought new products and merchandise for various purposes. Some are bought to fulfil our needs and some for the purpose of leisure.
The world is changing rapidly as consumer buying behaviors are changing with time. In the past times, consumers tend to buy less until they actually needed that particular product and merchandise.
But as time passes, consumers are more buying for leisure and to show status in society.
As soon as a new product or merchandise is bought its value started degrading. In this technology-advancing era, new techs replace existing ones very swiftly. The value of a smartphone bought a year ago might get depreciated 10% or more in value as soon as new smartphone technology is announced.
It’s astonishing to realize how fast the value of the products and merchandise falls as soon as bought.
Let’s check it out!
5 popular things that depreciate in value as soon as bought
1. New Automobiles
People are very excited when they buy a new car or bike. It is one of the expensive products where you require to pay a good amount of money.
A value of a car might depreciate up to 20% – 25% in a year and 55% – 60% in five years. The same goes for bikes and other automobiles.
Along with depreciation you also have to pay for its monthly maintenance and premium for vehicle insurance. So, unless you have a good financial base to cash out for an automobile, it is wise to look for used cars and bikes.
2. Cell Phones
It is one of the popular electronic tool that everybody wants to have a hold on. According to a study, there are 6.6 billion smartphone users in the year 2021 around the world and the number is growing. It is found that iOS-based iPhones depreciate around 15% – 22% in a year and android based smartphones depreciate around 30% – 35% in a year.
So, it is advisable to stick to a good smartphone once purchased until it becomes worthless or a major technology change occurs.
Writing is the best medium for storing wisdom, knowledge and information permanently and books are the product of that collective intelligence.
Every year millions of books are published and sold. Once a newly published book is bought its depreciation begins and there is a rare chance of rising in the price of that book.
If you sell it to the used book shop you will only get 35% – 40% or even less of its original value. So, it is better to buy used books as you will get them at a far cheaper price.
The value of jewelry depends upon its purity and making charges. While there is artificial jewelry available in the market it is far cheaper. Jewelry is a luxury item and a symbol of status in society. Apart from that people also purchase valuable jewelry items as an investment.
Real jewelry depreciates over time but not as fast as an artificial one. Before spending a large amount on jewelry you should first check for its authenticity and rarity.
Although not all jewelry loses value. That jewelry that is rare and holds any historic value might appreciate over time as well.
5. Video Games
There are tons of video games available in the market consisting of a variety of genres like adventure, action, role-playing, multiplayer, etc.
With the penetration of innovative technologies, there is a number of gaming consoles manufactured to provide a refined gaming experience. These consoles are expensive and you have to pay a good chunk of money to buy a new console.
However, as soon as you unbox it the value started to depreciate. Also, the games you buy to play for the first time get depreciated up to 50% – 60% as soon as you unwrap them.
Along with the above mentioned things, there are tons of things that are of no immediate utility for a person or are very expensive to buy but depreciate in value as soon as bought.
Here are a few things!
And a lot more.
How to act Smart?
You should perform deliberate research before making a large expense, whether it is worth buying such stuff or not. You may consider used products which are in a good state. It will not only provide the same utility but also helps to save money.
There are numerous kinds of stuff we bought for various purposes. Some of them are very costly and possess utility that can be easily fulfilled by alternate used items. Most people put their money on these expensive things that depreciate in value as soon as bought. A lot of goods and merchandise are available in the market to choose from and it’s our decision to make whether we act smart or not.
What do you think?
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He is graduate in M.B.A Finance, and owner of the financial blog “Saifwealth.com“. He started this blog to share his knowdelge in the field of finance and to help people understand and aware about the financial world.