Why don t EVs hold their value width

Pros And Cons Of Manufactured Homes: A Guide

FAQs: Pros And Cons Of Buying A Manufactured Home

Consider some common frequently asked questions you may have about manufactured homes before you purchase.

How can I buy a manufactured home?

Manufactured home retailers are pretty easy to find. You may start by looking in a manufactured home park with ready access to a community and potential utilities and amenities. You may also buy land to put your manufactured home on, though you will have to pay attention to deed restrictions and zoning laws.

You can buy a manufactured home through a manufactured home dealer, who will offer showrooms to tour as well as online 3D tours that can help you choose the right size, layout and other features to fit your needs and lifestyle.

Are manufactured homes ever a good idea?

Manufactured homes can offer many benefits to homeowners, including affordability, a wide range of customization options and high-quality standards. A manufactured home might fit your needs if youre looking for this type of setting and potential community atmosphere.

How long do most manufactured homes last?

According to HUD, manufactured homes built today can last 30 55 years, due partly to the HUD-required standards. However, this range depends on the level of upkeep and maintenance you devote to your home.

Why dont manufactured homes hold value?

Manufactured homes may not hold value like traditional homes but may keep it better than other assets, such as vehicles. The value depends on the housing market, price and age of the house, inflation rate, maintenance and upkeep and other factors.

HotCars

Its no surprise that the vast majority of electric vehicles sold in the United States bear the Tesla logo. In fact, the Model 3, Model Y, Model S, and Model X are so popular that they are becoming household names like the Ford F-150 and Toyota Corolla.

We know how inflation is eating into our savings and how the pandemic affected businesses in general. On top of facing low volumes and poor sales, manufacturers had to put up with semiconductor shortages and supply chain issues.

How did that affect everyday people, you ask? Well, folks looking to buy new cars have seen prices soar greatly. Dealerships are marking up to a point where people are even paying 40-50% premiums on new cars.

Its not just new cars that are getting expensive, though. Have a look at used car listings, and youll see how theyre priced. Teslas, in particular, have been a hot commodity, both new and used.

However, things are finally looking good for buyers, as outrageous markups have come down and used Teslas are becoming cheaper. But before we discuss why, heres a closer look at how used Teslas skyrocketed in value.

RELATED: 10 Reasons Why You Should Buy A Used Tesla Model Y

What Gave Rise To Tesla Flipping?

The advent of COVIDand all that ensued afterled to a series of events that caused a spike in inflation, supply and demand disruptions, and a global semiconductor shortage. The latter had a significant impact on new car production. Some people, however, saw this as a window of opportunity.

When supply doesnt meet demand, prices tend to rise. So naturally, since there isnt enough supply of new cars, dealerships started marking up the existing inventory, which led to consumers paying more. The market was so hot that Tesla owners started flipping cars for profits.

Its not just supply and demand that led to a spike in used car prices. Financing options became expensive since the Federal Reserve increased interest rates to combat inflation. This has also led to people withdrawing their interest in buying new cars. Ergo, more demand in the used car lot.

However, at some point, the greed frenzy has to stop, which is exactly what happened now. Will this last forever? Probably not, but its the way things are at the time of this writing.

RELATED: Heres Why The Tesla Model Y Is The Fastest-Selling Used Car In The US

Why Are Used Teslas Becoming Cheaper?

Markets are usually cyclical and more often than not, follow a pattern. A combination of factors are typically responsible for a market correction. Depending on the severity, though, corrections can end up becoming reversals. Technically, the used market is entering a cold-down phase, as sellers have realized that its no longer euphoria out there and that demand has dropped.

The average price of a used Tesla in November, according to Reuters, was $55,754, which is a 17 percent decrease from the peak price of $67,297 in July 2022. Additionally, with the passing of the Inflation Reduction Act, the EV tax credit has been officially amended. This will apply to all EVs sold from January 1, 2023. So that means buyers are now willing to wait for new cars, as opposed to settling with used Teslas.

Another reason is that the market is flooded with certain models. Remember, Tesla doesnt offer an extended warranty for the 3 and Y, so older models (circa 2018) are getting dumped. This leads to a saturation in the used Tesla space.

On top of that, dealers who are unaware of the EV trends jumped on the bandwagon, hoping for a quick buck or two. However, the markets have turned, and these dealerships are now selling their inventory just to recoup their capital. This is usually done in auctions. According to Find My Electric, auction EVs are extremely cheap at the moment, which impacts pricing on the private market.

The Real Reason Why Used Teslas Are Becoming Cheaper In The U.S.

Another factor that contributed to the drop in used Teslas is that the company cut prices by $7,500 on Model 3s and Ys sold in December 2022. This practice is not uncommon, as OEMs often drop prices to boost their year-end sales numbers. But for the used market, this became yet another reason for a price correction.

Next, its the overall economic instability. Remember the Feds raising interest rates? Well, thats to curb market spending. In other words, everything is getting expensive. Not to mention the fear of a recession looming around. As discussed, the Feds anti-inflationary policies have shot up borrowing rates, which not only affected new car sales but also used car purchases as well. People are hanging onto money and are postponing expenses that arent justifiable. If anything, people are only willing to spend if the prices are extremely attractive.

Lastly, supply chain issues are getting sorted one by one. Chip shortages are being addressed by the respective manufacturers, increasing their output, thereby meeting demands. Delays for most new cars have dropped significantly. For instance, the wait for a Model 3 Standard Range used to be a year, but now its only a month or two.

Sources: Reuters, Find My Electric

Which Guitars Hold Their Value Best? (See These 9 Brands)

When you buy a new guitar, you might not be thinking about selling it. But since most guitars get sold at some point, it might be something to consider.

Not only do some brands command good resale value, sometimes it comes down more specifically to where a guitar was made, and the reputation of that model with guitarists.

Fender guitars are best if you want to buy a guitar that will keep its value. Given a few years, used Fenders can sell for as much as they sold for new, or even more.

There are other guitars that are sought after too, but which ones?

Why Some Guitars Hold Their Value and Others Dont

How much of its original value a used guitar retains depends on several factors:

Condition

The number one thing you can do to help your guitar retain its value is simply to take care of it. A mint condition guitar will sell for more than one that shows obvious signs of use.

Value-for-money factor

The higher value a guitar is considered to have in the first place, the higher the value generally stays. This is why more expensive guitars lose more of their value (with a few exceptions)

Brand name

A big part of an instruments value comes from the market demand for it. That is why popular brands like Fender or Martin tend to keep their value better than lesser-known brands.

Color and other aesthetics

Although it may not be the most obvious difference, the color and/or wood grain of a specific guitar can affect the resale value of the instrument

Country of origin (and sometimes even the specific factory of origin)

Where your guitar was built can have a significant effect on its value retention. Typically, American and Japanese-made guitars hold value better than anything else. That said, as the quality of Asian-built guitars increases, they get better at holding their value.

How many were made or are available

Scarcity nearly always increases the value of something. So a guitar that is made in small quantities, such as a limited edition model, will likely keep its value and sometimes even appreciate.

Each of these parameters are related to each other. Meaning that even if a guitar is in mint condition, it may not retain its value as well if there are many available on the used market (for example).

Another thing to consider is market demand. Even though your guitar may be a mint example of a limited edition MIJ (made in Japan) Stratocaster, if nobody is looking for it at the moment, you may have a hard time selling it at a good price.

How Well Do Specific Guitars and Brands Hold Their Value?

1. Do Epiphone Guitars Hold Their Value?

Epiphone guitars are seen as having high value for money, and this helps them retain their value fairly well in most circumstances. Even lower-end models only tend to lose a small fraction of their worth.

You can buy a brand new Epiphone Les Paul Standard Plus for about $600. The used ones in mint and excellent conditions sell for an average of $530.

That means that right now the Epiphone Les Paul Standard Plus is holding almost 90% of its value.

The demand is high for name-brand Les Paul-style guitars. Still, this is pretty incredible for a guitar made in China.

2. Do Taylor Guitars Hold Their Value?

Taylor makes some excellent acoustic guitars. A favorite brand of intermediate and professional players alike, you can expect a nice example to retain its value well.

Two of Taylors most popular models, the Academy 10e and the Baby Taylor BT1, are currently holding about 79% of their value in the used guitar market.

3. Do Martin Guitars Hold Their Value?

Like Taylor, Martin produces only acoustic guitars. Martin is seen as a top-tier brand, producing some of the highest quality instruments money can buy.

That also means they are generally expensive.

Perhaps their most popular model to date (despite its price of over $3000) is the HD-28, a beautiful instrument with regard to both looks and sound. It currently sells secondhand for about 84% of its original value.

Because Martin is such a prestigious brand, its no surprise that the HD-28 is keeping its value a little better than the Taylors.

4. Do Fender Guitars Hold Their Value?

Fender is the top-selling guitar brand in the world, and the used market reflects that. There are always innumerable used Stratocasters and Telecasters for sale.

Fender guitars keep their value impressively well despite the market saturation.

The MIM (made in Mexico) Fender Player Strat holds about 80% of its value on the used market right now.

As for their American-made cousins, they suffer a bit more depreciation.

Fenders flagship Strat (Fender American Professional II) holds only 75% of its worth compared to its retail price of around $1,700.

Similarly, the American Ultra Stratocaster which usually retails for around $2000 sells used for an average of $1500 meaning it also retains approximately 75% of its value.

5. Do PRS Guitars Hold Their Value?

PRS is a fairly new guitar manufacturer in comparison to many of the other brands on this list. That said, they have become quite popular.

The PRS SE variants are certainly some of the most popular instruments in Paul Reed Smiths lineup. The SE Standard 24 currently holds 79% of its worth on average.

The more expensive PRS SE Floyd Rose Custom 24 sells for about $1000 new and keeps about 74% of its original value.

6. Do Gibson Guitars Hold Their Value?

The Gibson Les Paul is one of the most iconic guitars you can buy. And despite its infamous weight, it sells like crazy.

Brand new, the Gibson Les Paul Classic will cost you about $2300. On the used market, however, they sell for $1800 on average. This is about 78% value retention.

The Les Paul isnt the only popular guitar from Gibson. The SG is a favorite of classic rock and metal players, and nobody minds getting that classic Gibson tone without the weight of an LP.

That said, the Gibson SG doesnt keep its worth quite as well: 72% for mint examples.

7. Do Gretsch Guitars Hold Their Value?

Gretsch is known for its big, beautiful hollow body guitars. They make affordable and less affordable versions, but nothing they sell is of poor quality.

The Instantly recognizable Electromatic line is by far their best-selling model. The G5420T will cost you around $850 new.

If you have one in excellent condition, you can sell it right now for around $700. Thats 82% of what it costs brand new.

The Gretsch Jet FT is another of their most popular guitars. However, it doesnt keep its value quite as well. The average price of used examples in excellent condition is only 73% of the usual price of new models.

8. Do Suhr Guitars Hold Their Value?

There isnt nearly as much data available on Suhr guitars. That said, what information there is, points to Suhr having exceptional resell value.

The few used Suhr guitars that have sold recently have gone for 80-90% of their original worth.

Considering the typical prices of Suhr guitars (around $3000), that is exceptionally good.

9. Do Ibanez Guitars Hold Their Value?

Ibanez is a big name, especially on the rock and metal scene.

Their budget guitars are incredibly popular because of the surprisingly low cost for a decent quality instrument. You can get a Gio series guitar for $200 new and around $165 used. This equates to an average value retention of 82%.

Their more expensive options do equally well. The Ibanez RG550 costs significantly more (around $1000 new) but still holds 79% of its value on average.

The Guitar Value Takeaway

The value of a guitar depends on many factors. Whats more, is it changes frequently.

The brands explored in this article all keep their worth quite well. That said, there are a few that stand out:

1. Epiphone Guitars

People say that Epiphone makes guitars that are nearly as good as Gibsons pricier models for one-quarter of the price. Their value for money helps them to keep their worth exceptionally well.

The rarer the model, the more they hold their value, with most average production models retaining around 50-65% of their original price for near mint condition examples.

Early model Epiphone guitars from the 1940s-50s in good condition can sell for a few thousand dollars.

2. MartinGuitars

Status certainly helps Martin guitars retain their worth despite their high retail prices. But Martins unquestionable quality and craftsmanship is likely the most defining factor.

3. FenderGuitars

The newer Fender guitars hold their value similar to other brands right now, but what is truly impressive is Fenders older editions:

MIM Fender Standard Stratocasters (discontinued by Fender, but still available on eBay and Reverb) in mint and excellent conditions hold up to 95% of their original worth.

Similarly, the Fender American Standard Strats (also discontinued) are now sold at about the same price point as the new ones were three to four years ago, meaning that they have retained about 100% of their value.

4. Suhr Guitars

Its a little surprising to see such a small brand keep its value so well, but Suhr produces supreme guitars in smaller quantities, which helps their guitars keep their value.

Looking to see how much your guitar is worth? Reverb.com has a great tool that looks at the most recent sale prices of similar equipment to give you an estimate. You can find it at reverb.com/my/collection.

If you are looking at a particular guitar, then the Blue Book of Electric Guitars, and the Blue Book of Acoustic Guitars is produced regularly, and is the best resource to find a realistic price based on the condition of the guitar.

_{Suhr guitar image credit : James SpaceDock, CC BY 3.0 https://creativecommons.org/licenses/by/3.0, via Wikimedia Commons}