Why some products hold value and others don't

The value question

A new iPhone loses 30% of its value immediately. A Rolex might sell for more than retail. Understanding why helps you make smarter decisions when buying or selling.

Electronics depreciate fast

Smartphones:

• Lose 30-40% in the first year
• New model releases crush old model prices
• Apple holds value better than Android
• Higher storage = better retention

Typical iPhone depreciation:

• At launch: 100%
• After 1 year: 60-70%
• After 2 years: 40-50%
• After 3 years: 25-35%

Laptops/computers: Similar pattern. Gaming laptops drop faster. MacBooks hold up better than Windows machines.

Gaming consoles: Initial drop then stabilization. Limited editions hold value. Retro consoles can appreciate over time.

Fashion varies wildly

Fast fashion (H&M, Zara): Near-zero resale. Exception: unworn with tags.

Mid-range brands: 20-40% of retail typical. Condition matters a lot. Seasonal items depreciate more.

Designer/luxury: Highly variable. Some items appreciate. Authentication required. Brand reputation matters.

What can actually appreciate:

• Limited edition collaborations
• Discontinued popular items
• Vintage pieces (20+ years)
• Iconic designs

Watches are the exception

Luxury watches (Rolex, Patek Philippe) often hold or exceed retail. Wait lists create scarcity. Some models trade at 2-3x retail. Condition matters less than authenticity.

Why they hold value: limited production, strong demand, perceived investment quality, actual craftsmanship.

Vehicles are predictable

Cars:

• 20-30% first year
• 50% by year 5
• EVs currently depreciate faster
• Trucks hold value better

Motorcycles: Similar to cars. Harley-Davidson holds value well. Sport bikes drop faster.

Why discontinued items cost more used

When products are discontinued:

1. Supply stops - no more being made
2. Demand continues - people still want them
3. Prices rise - basic economics

Examples: Electronics where older models did something newer ones don't. Beloved designs that got killed. Gaming consoles no longer in production.

When CostBuddy shows "Discontinued" for retail but a high used price, this is why - the item has become collectible or scarce.

Apple vs Android resale

iPhones consistently outperform Android:

• Longer software support (5-6 years)
• Fewer models = concentrated demand
• Brand prestige
• Ecosystem lock-in

Typical 1-year retention:

• iPhone: 65-75%
• Samsung Galaxy: 50-60%
• Other Android: 40-50%

Best-holding Apple products: iPhone Pro models, MacBook Pro, iPad Pro, AirPods Pro.

Android exceptions: Samsung flagships, Pixel phones (photography enthusiasts), gaming phones (niche demand).

Gaming console value

Current generation (PS5/Xbox Series X): Initially scarce = above retail. Normalizing as supply catches up. Digital editions worth less than disc versions.

Previous generation (PS4/Xbox One): Big drop when new gen launched. Stabilizing at lower price points.

Retro gaming: NES, SNES, N64, original PlayStation, GameCube (especially colored variants) - these can appreciate. Nostalgia demand, no new supply, collector market.

Collectibles

What makes something collectible:

Scarcity - limited production, items getting destroyed over time, unique variations.

Demand - nostalgia, pop culture significance, investment potential, completion desire (sets, series).

Categories that tend to appreciate:

• Trading cards (Pokemon first editions, sports rookie cards, Magic: The Gathering)
• Toys (sealed LEGO sets, vintage action figures, Hot Wheels rarities)
• Media (sealed video games, first edition books, specific vinyl pressings)

Warning: Not everything collectible appreciates. Beanie Babies taught us this. Modern "limited editions" are often mass-produced. Condition matters enormously. Authentication increasingly important.

What this means for buying

Buy items that hold value when: You might resell later, upgrading is planned, long-term ownership uncertain.

Ignore resale value when: You'll use it until it dies, it's purely functional, you're buying the cheapest option anyway.

What this means for selling

Maximize value by:

• Selling electronics quickly after upgrading
• Keeping original boxes and accessories
• Maintaining condition
• Timing sales to demand

Know when value is lost:

• New model announcements
• Technology shifts
• Fashion trends ending
• Oversupply in market

The practical takeaway

Understanding depreciation helps you buy smarter (choose products that hold value if that matters to you), sell smarter (time your sales before major drops), and spot opportunities (underpriced items that hold value).

CostBuddy shows both retail and used market prices so you can see the real-world value gap.