As a true purse aficionado, I am constantly acquiring new handbags for my ever growing collection. I know I’m in good company when I say I own more bags than any individual would ever need, and although I can certainly afford my handbag habits, I do feel an internal need to justify my purchases. I’ve got a long list of reasons that justify the purchase of a bag, ranging anywhere from “I don’t own anything in that shade of blue” to “it’s an investment”. In fact, I use the term “investment” to describe my luxury purchases quite often, and I see the term used all the time while browsing the PurseForum. In fact, I would say many of us purse lovers refer to our purchases as investments, but is that truly the case? I am 100% guilty of referring to my bags as investments before, during, and after a purchase, but in reality, I’m not so sure if that’s the case. PurseBlog covered a study in 2016 that found that Hermès Birkins can rival traditional investments, such as gold and stocks, which is absolutely fantastic news for Birkin owners, but what about the rest of us?
As much as I wish I owned a Birkin (and trust me, I seriously wish!), I’ve got to question if any of my bags can be considered legitimate investments. I will be the first person to admit that I am not a finance whiz, but I do regularly sell my handbags to fund new bags, so I am knowledgeable on bags retaining their value. Being a frequent reseller has forced me to face an unpleasant reality, which is my bags can’t be considered investments. I can’t tell you how many times I have purchased something quite pricey, only to take a heavy hit when I resell it a few years later. This is a large reason why I frequently purchase from luxury consignment shops rather than the retailer directly—you can get a serious bargain! I did buy a Gucci Marmont bag I’ve been lusting over for years directly from the Gucci store last week, but I digress….
I’ve started to think of my handbags like brand new cars, they depreciate in value after leaving the shop, and that’s okay with me. Maybe they will be collector’s items or rare and expensive 35 years from now, but even if they’re not, I’m going to buy an item because I love it, not because it will have large resale value. That doesn’t mean I will never buy brand new again, I definitely will. Why? Because my handbags may not be financial investments, but they’re certainly investments in my happiness, and I will continue to call them investments accordingly.
Do you think handbags can be true investments? Inquiring minds want to know!
My experience is that the only bag that truly holds it’s value is the Hermes Birkin.
And the Kelly pochette. Those are rarer than the birkin.
Yes, they can be. The bags that will certainly amount to equal or higher resale are LV, Chanel and of course Hermes. That is of course depending on the style and/or issue of the handbag.
Remember the Juicy Couture velour bag trend? My tote is only worth $20!!! In all fairness, I was younger then.
The reality is that even bags from Louis Vuitton, Chanel, and Hermès depreciate greatly. Only a few select models are in such demand that the prices stay high on the second hand market.
I have a Chanel WOC that I bought for $900 years ago which is worth more now, but that seems to be a fluke of timing. The Birkin, Kelly and Constance seem to be it for good investments where you could actually make more money than you paid (this is what I tell my husband as I wait for my Birkin). I follow some of the Hermes groups and older Birkins are significantly less than newer ones. Not sure of the original costs, so can’t say if a bag from 2005 that is selling for $4K originally cost less than $4K in 2005. The point being even a Birkin will lose its value eventually. But who care if you love the bags for the time you own them.
If ever you want to sell your Chanel WOC, if it ever being used it will have signs of wear, it’s not going to sell the same price as the today’s retail price. Considering the selling fees (13% – 35% of the final sold price in average), it’s hardly to get your money back. that’s been said, the handbag is not a investment. it’s nice to be able to afford a well made bag and enjoy it tho, but counting the purchase as an investment will bring disappointment later.
I never said it would sell for over today’s retail, just over its original retail. I have been buying, and occasionally selling, bags for 20 years, so I am very aware of the investment potential…or not of a bag. I am thinking your comments were meant for the group and not specifically for me as I know exactly what the value of my bags are.
I am glad you bring this topic. This “luxury handbag is investment” theory is just a sweet excuse for women splurge ridiculous amount of money on on handbags.
Hand bag can never be a investment. It’s same thing like car, once you use it, the depreciation started. May be there are some particular model of car or handbag that you buy it and keep it in good condition (which means you can’t really use it like it should be), you may be able to make a small profit on selling it later, but it’s rare. Not to mention, leather is not the material that can last forever.
I don’t consider them investments. I love my bags but if and when I go to resell them the value I can sell for is gone. I don’t own a Chanel or Birkin…but when reselling Chloe’s, Gucci’s, LVs, I never get the value back. I just use the money for another bag. Go on Poshmark and you can see every bag sitting there looking exactly the same. The only way to move the bag is lower the price substantially.
Very true. You’ll see a ton of likes on the bag maybe even a few comments but not too many look like their being sold. Not to mention after the fees on Posh you’ll be out of money too.
you have to check the sold price. It is listed as 3200, doesn’t mean that bag will be sold at $3200. Even it could, doesn’t mean the seller received $3200. All online sale platforms charges minimum 13%, Poshmark charges 20%. Congrats on your purchase on Chanel classic flap! That’s one of the rare bags that price increase was insane during the past. But buying them now and expect the price will keep going up rapidly? That will be challenging.
I think it’s all a matter of timing. At least with respect to Chanel, people who bought the classics ten or fifteen years ago could probably sell those bags today at a profit, especially given how the prices increased exponentially during that time period. But, there’s no way to do that these days with how high retail prices have gotten. (No one is going to be able to purchase a $5900 jumbo and be able to sell that for over retail in 5 years.)
I will say that I’ve had a good amount of luck reselling bags that I’ve purchased on the resale market for good prices. For example, I bought a preowned vintage Hermes Constance for $5000 that I sold a couple years later for $6500, and I bought a preowned YSL tote that I sold for an extra $400.
I was going to say the same – it’s a matter of timing. I bought my Chanel classic flap medium at around $2500 12 years ago and I just looked at a similar bag at a much terrible condition (scuffing at corners, scratches and pen marks) selling for $3200. My bag is in a better condition so I can probably sell mine for more than that.
I think it depends on your own definition of “investment.” I don’t personally see my bags as financial investments. While I do know there are a few that will hold excellent resell value (Hermés, Chanel…depending on the style), most of them will not (especially my Chloé, Mulberry, Valentino bags).
I call my bags “investments” because they are long term purchases for me. I try to buy timeless classics that will hold my interest for decades, not an ‘it’ bag that will have my interest for just a year or two. They are my investments because I’m keeping and taking care of them so I can pass down my collection to my daughter with time. She may not have many pieces of expensive jewelry, but she’ll have a Birkin and Kelly when she’s in her late 20s if she wants them.
I think it’ something we tell ourselves to lessen our feelings of guilt, but hey, whatever works. Something you are using yourself rarely appreciates in value, and handbags are purchased to be worn. If you were going to keep it and never use it in hopes of the value going up over time, that might be another matter. An investment means you get back more than you put in , it implies a return..but I doubt that eve happens unless it’s a rare Birkin..(and i’ve always thought Birkin people were nuts anyway.)
It’s not an investment, per se. BUT, if you know in your heart you will have a certain bag and it’s a classic, you will “save” money by buying it sooner rather than later. I bought a lady Dior 12 years ago for $1500ish. It’s now selling for over $3000. I told my husband, look how much money we saved by not delaying!
Only a fool would pay current retail for a used and older model bag. And only fools really think handbags are investments.
A bag is an investment only if you can use it in a way it will show very little sign of wear. I prefer to be comfortable carrying my bag, and keeping it pristine for resale is not my biggest concern at all. I don’t trash it, just don’t care if it goes through normal wear and tear.
Investment has different meanings for different people.
Monetary? Only very few bags.
Cost per wear.
And happiness.