American made Fenders and Gibsons actually retain less of their value

Discussion in 'Guitars in General' started by WoodenDuckMaker, Feb 11, 2015.

  1. WoodenDuckMaker

    WoodenDuckMaker Member

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    I'm surprised how many people I see that mention that one of the perks of buying an American made Gibson or Fender as opposed to Made in Mexico, China, or Korea is that they hold their value better.

    Compare what a new Gibson LP/SG, or American Standard Fender Strat or Tele sells for at a retailer, then compare for what it sells used on eBay, see how much value it lost.

    Do the same with an Epiphone LP or SG. Or a MIM Standard Strat or Tele. The depreciation percentage is less. Similar to luxury cars, and inexpensive import cars.

    I'm not saying this to berate them, I own American made Gibsons and Fenders. I just think it's misinformation that needs to be corrected.
     
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  2. Jon C

    Jon C Silver Supporting Member

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    IMO / IME it's an opinion, it may or may not be misinformation. I could sell each of my Gibsons (Historic or CS) bought new (at good prices) for near or more what I paid.

    I haven't bought a new Fender in so long I can't comment but based on my used Fender CS purchases you may be right there.
     
  3. ixnay

    ixnay Member

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    Every Gibson I've sold has retained more of its value than any other brand I know of.

    I've purchased Gibsons at 20% off MAP and broke even selling them a year or so later. Buying them at blowout prices (30-40% off MAP) almost guarantees a profit on resale every time.

    With other brands, I can get blowout prices up to 50% off or more and still lose money when I sell...
     
  4. Texsunburst59

    Texsunburst59 Member

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    I never have to worry about my American Fender or Gibson guitars retaining their value. I always buy used and usually at at a 1/2 or sometimes a 1/3 of the going used value.

    This ensures I never have to worry about getting my money back from any guitar, and always make more than I paid.
     
  5. schwa

    schwa Member

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    With any guitar purchased new, there's a big depreciation to get over, so you may be right there.

    One thing I have noticed is that quality guitars (say CS Fenders and Gibsons) retain nearly all of their value and appreciate slowly.

    For example: a used CS Strat could be readily had for ~$1800 five years ago. That same guitar today is worth at least that price, likely more.

    I bought an NOS LP Custom Historic (R7) for $2k in 2003. It's worth at least $2k today.
     
  6. teledude55

    teledude55 Member

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    I always buy my guitars used, I think the newest guitar I bought was a FCS strat that was 2 months old, I got it for a steal though. All of my "used" guitars are worth the same or more than what I paid. I try to avoid paying retail for anything in this world.
     
  7. +3kk!

    +3kk! Member

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    i think the comparison is made with guitars in the same "class"

    like PRS loses heaps of its value here, they go for easily 50% of its price and folks who insist on keeping a 30% reduction would find it very hard to sell

    even in ichibashi PRS prices are easily half its retail price.

    likewise the same for other brands, i bought an ibanez prestige once, i sold it for 50% of its price. this guitar was near mint had one chip and very little scratches because i rarely used it.
     
  8. nightbird

    nightbird Member

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    I lost significantly less money on any USA guitar as opposed MIM. Last two US Strats I sold I lost $25 on one and made about $65 profit on another. Lost around $200 in value on a mim Strat. The mim Strats on GL, in my area keep popping up over and over, trying to get $300 to $350. Never gonna happen. plus the market is flooded with mim Strats and Squiers. But if you want to believe mim or Korean are a better value, good luck with that.
     
  9. DiPa

    DiPa Silver Supporting Member

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    I sold an R8 for what I had paid for it, 12 years later.
     
  10. Rumble5

    Rumble5 Member

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    I have always bought used guitars and they were always Gibsons and Fenders that were made in the US. Most of them were less than $1000 with most closer to $500. I have always made money when I sold them, usually $200 or more, on every single one except for a 70's SG that I didn't know was damaged when I bought it.

    I bought my '79 Les Paul Standard 11 years ago for $900. It's worth about $2000 now.

    Bought my Hwy One Tele about 8 years ago for $450. It's worth about $700 now.

    MIA Precision bass- bought for $450, now worth $700-1000.

    The only new guitar I've ever bought was my current Les Paul Junior Special. It cost $550 and I feel certain I could sell it for more than that now.

    If someone buys a brand new high end Gibson or Fender at full price, then, yes, they're likely to take a big hit in depreciation, but I don't think that's a smart way to buy. If you buy used USA guitars they will often appreciate. Those made elsewhere usually will not whether you buy new or used.

    If you buy smart, then American-made guitars can be good "investments", not that they'll be big money makers, but that they will hold their value or be worth more later.
     
  11. EADGBE

    EADGBE Member

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    I don't buy guitars to sell them later. I buy them to play.
     
  12. monty

    monty Member

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    "If someone buys a brand new high end Gibson or Fender at full price, then, yes, they're likely to take a big hit in depreciation, but I don't think that's a smart way to buy. If you buy used USA guitars they will often appreciate. Those made elsewhere usually will not whether you buy new or used. "
    My findings as well. And like the above poster, I don't buy them with resale in mind anyways.
     
  13. DiPa

    DiPa Silver Supporting Member

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    This, Yes
     
  14. rotlung

    rotlung Member

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    eBay prices mean nothing in the real world, IME.
     
  15. Tidewater Custom Shop

    Tidewater Custom Shop Performance Enhancing Guitarworks Supporting Member

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    It's a perk that people MAY use to justify the higher initial cost of an American made instrument. Sure, if pay $4000 for a Les Paul, then sell it a year later you'll take the hit - perhaps greater percentage-wise than say a new Epiphone Les Paul. Maybe.

    This 'misinformation' can easily be qualified with a simple caveat, which interestingly enough you convey - Hold onto it long enough and the comparison you discuss becomes reversed.

    I respectfully disagree. eBay IS the real world for resale of a used guitar or gear, and that's what we're discussing here. Sure, we - the 1% of guitar enthusiasts at TGP and other similar forums, can isolate ourselves from apparent reality - but when faced with selling gear in general, eBay has always yeilded the best results for me - despite the ridiculus fees.

    Of course there are exceptions - like cultish gear (i.e. pedals, hyper-specialty amps/guitar/gear). The deeper I get into guitar stuff the more I realize THAT is the place to sell used gear. Not Reverb, not Craigslist, not a guitar forum... but eBay.
     
  16. Ape Factory

    Ape Factory Member

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    So $900 in 1979 dollars, adjusted for inflation in 2014 comes out to approximately $2900. Or...if we want to convert it back to 1979 $$$, you've lost about $300 on the guitar.

    Now take that same $600 and assuming a 10% return over 36 years you'd have almost $28,000.

    Chew on that for a bit.
     
  17. Tone_Terrific

    Tone_Terrific Member

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    That's a pie in the sky comparison.
    However, if you buy new, a $2000. American guitar, it's realistic to expect a near immediate depreciation of a couple hundred as soon as it hits the used market. (short term on a typical model). Call it 10% (a conservative guess).
    Your Squier, at $300 new, is unlikely to drop $200 as it leaves the shop.

    The cost of acquiring and dealing with depreciation of higher priced goods is real. Many exceptions, in both directions, can happen.
     
  18. Ape Factory

    Ape Factory Member

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    No, that's hard reality. There's nothing pie in the sky about it. Only a very small percentage of guitars are going to make owners any money. It's a fool's errand.
     
  19. Johnny Alien

    Johnny Alien Supporting Member

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    I am not great in math but 11 years ago wasn't 1979.
     
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  20. Rumble5

    Rumble5 Member

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    You must have had trouble reading my post. It stated that I bought that guitar for $900 "11 years ago". You even quoted that part in your post. That would be 2004. So let me clarify for you: I bought a 1979 Les Paul Standard in 2004 for $900. It's now worth $2000. Understand now? :rolleyes:
     

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