Toyota (NYSE: TM) has introduced a new program to sell certified used hybrids. Consumers aren't buying the Prius in great numbers any more. Its technology makes it more expensive that similar gas-powered autos.
A walk along Fifth Avenue in New York City shows that Torneau, one of the top watch retailers in the world, is filling its windows with certified pre-owned watches. The showcase windows at the stores recently had only new time pieces.
The sales of used Apple (NASDAQ: AAPL) iPhones is increasing. New came out today that Gamestop (NYSE: GME) is finding that "used" is in vogue According to The Wall Street Journal, "What sets it apart from other game retailers is its virtual lock on used game sales." The retailer has figured out that some people simply can't afford games that are new.
Welcome to the "used" economy. By many measures, a new car losses 30% of its value the minute it drives off the lot. Most watches are marked up 40% when they are sold new. That premium disappears once it goes onto a buyer's wrist. If that seems hard to believe, go to the watch section on Ebay (NASDAQ: EBAY)
In an effort to pinch every penny consumers who must buy things are looking for goods that are in good shape but do not carry the premium of price that being the first owner does.
What's next? Used food.
Douglas A. McIntyre is an editor at 24/7 Wall St.











Reader Comments (Page 1 of 1)
1-21-2009 @ 9:22AM
BHarrison said...
"Used items that are in 'good condition'" are no different than "new items" that have been possessed for a short while by the original owner, right?
The status of being the "original owner" is really what the "premium price" is all about. The realtive value of products becomes more realistic, more practical.
This will substantially reduce the corporate profitabilities, much of which is used to pay CEOs, CFOs, and other upper management obscenely exorbitant salaries, bonuses, etc. The stock hlders have already "taken the hit"; but the CEOs, CFOs, etc. are STILL collecting those exorbitant salaries and compensations.
This next phase of consumer conservatism should force the significant reductions in the exorbtiant compensations for CEOs, CFOs, etc.
Unfortunately, the adjustment to the salaries and compensations to the CEOs who have been most responsible for our national economic melt down, will be the last to be adjusted . . . these corrupt corporate "leaders" will be the last to be impacted by their FRAUDS and INCOMPETENCES that created these problems.
It is time for a new generation of business leaders to rise out of this debacle.
"Used products in good condition" are a terrific way to save money for the American people.
1-21-2009 @ 10:59AM
bfash said...
Buying a new car is the biggest rip off!! A 2 year old car comming off a lease with a dealer certification is a great deal. I can buy a 2006 Cadillac Deville DTS for 20k with a 4 year bumper to bumper. This car is selling new for close to 60k!! And it's the best American vehicle made!!
1-21-2009 @ 11:10AM
TippCityFerris said...
Wife had Monday off so we went to a thrift store, purchased 3 men's shirts, 3 pair of Dockers, 3 women's sweaters, 2 books that had never been read, and some toys for our grandkids. Total price: $30.26. Everything looked brand-spanking new. People discard unbelievable items when they gain/lose weight or simply clean out closets.
Avoid malls, tear up credit cards, clip grocery/restaurant coupons, grow and can (or freeze) your own veggies, repair broken cars and appliances, learn how to use a sewing machine, make your own furniture, and hit the city free library. In doing simple things, you just gave yourself a $10,000 a year tax free supplemental income! Make a game of it -- it's a trip!
1-21-2009 @ 12:26PM
Richard Busic said...
Used food, get a grip on reality. The measure of an items value is it's value, not weather you paid 40% more than the guy next to you. Whats next? a used Van Gohe maybe. Try to find a new one pal.
1-21-2009 @ 11:40AM
TX CHL Instructor said...
"Used" is somehow bad? Back during a period of under-employment, I got most of my clothes from thrift shops -- an excellent source of all kinds of things for anybody that has more time than money. I still peruse the garage sales and thrift stores, as a kind of hobby. Never know what you'll find that somebody else didn't appreciate.
Another poster already pointed out the obvious economy of used cars. Buying a two-year-old (or one-year-old!) car is a good example of benefiting from somebody else's wasteful stupidity. Caring too much about how your car looks is a major cause of financial problems in this country, right up there with buying a bigger home than you can afford.
Use, and re-use and repair until it wears out (cost of repair exceeds replacement), then adapt or recycle it for another use -- that makes very good economic sense, and always has.
Only problem is that as "used" becomes more popular, "used" goes up in price.
As for "used food", all of your food is already recycled.
1-22-2009 @ 3:21AM
fordf350va said...
I will be 60 years old in July. I do not purchase new cars. Never have, never will. Our last "new" car was a 2005 Nissan Xterra, a program car we purchased in 2006. A new one cost over 30K. We got ours with a new car warranty, and it is just about the best vehicle we've ever had.
This is a large vehicle, but it gets 23 mpg highway. And, its a 4x4. My wife says it's her car, and I agree. She loves the thing. We'll most likely keep it till we are dead.
New cars are a waste of money. But you have to know how to shop for that used car. My inspection of this vehicle, the day we purchased it took over an hour. I know what has to be checked, and any vehicle I ever had gave over 100k miles of service.
Thank you.
Norman Prevatt
1-21-2009 @ 1:12PM
ICoray said...
After buying used books for many years I started realizing that in many cases it is not at all important that the product be absolutely new.
At used bookstores you pay less than half the price and often the books have not been read, the choice of titles is much larger (making it fun to browse) maybe not the latest bestsellers, but generally that is not what I am looking for, but if you missed last year's bestseller they will often have it. Another plus for secondhand bookstores is that sometimes you end up making an investment, you end up buying a book that might increase in value, yet you bought it discounted.
Also living in LA I have found that people often go on clothing shopping sprees in the thousands and then these clothes end up at consignment or thrift stores. Since I moved here my closet has been completely upgraded (a lot of it to designer quality) for a fraction of retail prices.
1-21-2009 @ 2:27PM
BHarrison said...
Well, think of it this way: Once you walk out of the store, or drive off the lot, the NEW "whatever" is "officially USED PRODUCTS" and probably worth 30% or more LESS than you just paid for it minutes ago.
Does that make rational sense to anyone?
It appears that hard economic times may teach a lot of people some "common sense" in regard to "luxury items" and other products. The only consideration might be the "relative value" of warranties and guarantees that may only be applicable to "original purchasers".
Otherwise, who can discern the difference between a "used item in good condition" versus a brand new, unused product?
I guess that it comes down to one's personal preference . . . and bank account.
1-21-2009 @ 3:30PM
Denise said...
I have been a thrift store and garage sale shopper since I was a kid I love it you never know what you will find today I bought 4 pair of jeans 2 sweaters and a shirt for 15.00 all name brand but yes since I do a lot of shopping like this I can confirm the prices at thrift stores are on the rise.
1-21-2009 @ 3:46PM
MyKisa said...
With Fair Tax you could buy 2nd hand and avoid most taxes altogether...at least you would have choice...something most in DC will not allow you to have...but if you forget to pay those taxes........
1-21-2009 @ 4:19PM
Steve said...
My wife uses a product called NoseSecret from www.NoseSecret.com when we go out sometimes. It is like a temporary nose job. For 35 dollars it's a lot cheaper!
1-22-2009 @ 1:28PM
Charlotte said...
I saved at least $400 last year using www.bookins.com for used books and DVDs. There are other sites, too, like bookmooch and paperbackswap, although I like Bookins best. The depreciation after buying books and DVDs new is like driving that new car off the lot. I hope SOME people keep buying new to feed my want-list, but I'll never pay more than $4.49 to have a book delivered to my house again! I enjoy the "green" aspect of releasing my read and watched items to others.