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How much depreciation on a new guitar in one year?

Discussion in 'Other Guitars, other instruments' started by sloppychops, Mar 23, 2021.

  1. sloppychops

    sloppychops Tele-Holic

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    Well, purchase is off. Seller declined my $1150 offer before we even met. Just as well. For $267 (tax included) more I can get a new one during a 15% off sale (or by asking for 15% off).
     
    sax4blues likes this.
  2. Chuck Stoat

    Chuck Stoat TDPRI Member

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    According to Reverb - approximately 90%-110% of retail.
     
  3. PJ55

    PJ55 Poster Extraordinaire Silver Supporter

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    Get a used, low mileage Mex Fender. I’ve collected a few over the years. They don’t appreciate a ton, but they do appreciate as Fender cranks the prices up on them. And, they’re terrific guitars. Not sure about the MIC offerings. They appear to stay constant in value or decline. MIJ models seem to do better, from a value POV, but the Mex models seem to do the best, from a value standpoint. Some of the Mex guitars I have, that I paid $400-$500 for can’t be replaced for much less than $800-$1000.
     
  4. decibel

    decibel Tele-Meister

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    Current market: a MIC guitar will drop at least 25%. A made in USA guitar might not drop at all. I bought a thin skin AVRI brand new in '16 and sold it last year for more than new.
     
  5. kilroy6262

    kilroy6262 TDPRI Member

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    Something I learned from privately selling cars - never ignore sales tax. Every state has a different sales tax rate, with 5 states being almost 10%. So if you buy a guitar at a shop for $1000, in those states you're going to pay about $95 in sales tax, so that guitar actually cost $1095. Suddenly that same guitar, used and 1 year old, doesn't look quite so bad at $950 in a private sale, even though it's only $50 bucks less than the "new price". Just something to keep in mind when you're haggling over a guitar. If you're in a no-sales-tax state, that doesn't do you any good, but...

    Ironically, this new/used paradigm is rather messed up. A dealer buys a guitar from Fender at about half of list price, then "discounts" it 10%, so they're really marking it up about 80% from what they paid. On that $1000 guitar, they're making about $400 profit. The guy who buys that guitar and then has to sell it a year later, according to the posts here, should be selling it for about $650, so he's losing $400 (sales tax!!). One year and some smudgy fingerprints is the difference between profiting $400 and losing $400.
     
    Last edited: Mar 26, 2021
  6. Lance Morgan

    Lance Morgan Tele-Meister

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    Best to not jones for a guitar if you want value. Take it or leave it. If you’re expecting to sell it, that’s the wrong reason to buy, in my humble opinion. I’ve gotten great deals here in Austin, all used except one, out of 30+. But I have sold none. I never over-thought it, but I am certain I could recoup every dollar and much more. But I’m not selling. Yet.
     
    sax4blues likes this.
  7. Matt Sarad

    Matt Sarad Tele-Afflicted

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    I bought a Squier Classic Vibe Tele yesterday for $275. Searching online I discovered I saved from $50-75. Even though list price is in the $400+ range, the used market averages $350-450.

    Regarding acoustic guitars, seems to be about 30%.
     
  8. pippoman

    pippoman Tele-Meister Silver Supporter

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    A third off is my motto as well. As bad as that is for sellers who purchased a new guitar, for buyers at least it holds that price point for the buyer should he decide to sell.
     
    Charlie Bernstein likes this.
  9. AmpHandle

    AmpHandle Tele-Meister

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    delete
     
  10. nickmew

    nickmew TDPRI Member

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    I've got one of those, and I simply wouldn't sell it - it's worth more to me than whatever I could get - even if I sold it back at the new price I bought it - it blew away an ES-330 I was comparing it to which was twice the price.
    If you can get a new one, just do that.
     
  11. sloppychops

    sloppychops Tele-Holic

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    Finally, someone who gets it! This isn't a junky MIC guitar. In my initial post, I stated that it's a high-end MIC guitar. Then I posted a screen grab of a listing of one on Reverb.

    I'm destined to get one of these eventually, even though I don't like buying MIC.
     
  12. Sax-son

    Sax-son Tele-Holic

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    That philosophy can be all over the map. I have seen some guitars drop in price only to rebound big time when the quit making them. My advise. If you find what you really want, look around 75% street value unless the person is really desperate, it's possible you could get a better deal, but don't count on it.
     
  13. Maguchi

    Maguchi Tele-Holic

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    Yeah, demand exceeds supply right now. Just go into any music store and look at their used guitar selection compared to what they had a little over a year ago. Things will stabilize again, just give it a year or so.
     
    ale.istotle likes this.
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