Depreciation (was: [lug] Looking for a laptop...)

Bear Giles bgiles at
Fri Oct 24 12:05:10 MDT 2008

As an aside, Freakanomics explained this.  It's not that it depreciates 
per se, like between the fourth and fifth years.  It's because anyone 
buying the car will legitimately ask why you're selling the car after 
only 6 months.  It must be a lemon.  Therefore people adjust the 
perceived value of the car.

In contrast computers depreciate because you can buy more for the same 
money, or the same for much less money.  So it's an entirely different 
type of depreciation.

The best analogy might be buying a Hyndai (sp?), then complaining that 
the value has dropped since the buyer can now buy a Honda for the same 
amount of money, or a BMW for the same amount of money if he's willing 
to wait a year.

Nate Duehr wrote:
> Stephen Queen wrote:
>> I've watched the craigslist off and on for used computers/laptops. The
>> thing that always stuck me is that most of the people selling used
>> computers tried to tie the value of their computer to the purchase
>> price, not to what a comparable computer is selling for new,
>> presently.
> Computers are as bad as cars for instant depreciation.
> The only difference is, cars cost more, so you lose more money the 
> second you "drive it off the lot".  :-)
> Nate
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