Lowest Resale Value of Bags: Why Preloved is Better
Many know that designer bags are an investment. But not all designer bags are treated the same.
Each luxury bag brand has a level of prestige. People search for the best Chanel bags to invest in or the best Louis Vuitton bag to invest in.
But here’s the kicker: most bags don’t hold their value after being purchased. So why buy full price when there’s so much more value at resale?
Luxury bag brands with the lowest resale value
Not all luxury brands equally perform on the resale market, depending on the trend at the time.
Unless the item is vintage, with the original packaging and card of authenticity, and is in mint condition, reselling it for the purchase price can be difficult.
Chole
One of the steepest depreciations is Chole. Their retail prices are over $1000, but preloved Chole sells for $200–$500, even in excellent condition.
That’s not to say the Chole bags aren’t worth it. They have cute and chic style pieces that are available for half the price at the second-hand market!
Gucci
For example, many Gucci styles retailed for about $2000 during their peak season. But those items are $600–$900 on resale platforms.
If you are looking for a particular Gucci bag, check out the preloved market first! They’ll most likely have your bag at a much better price than at retail.
Why is luxury depreciation low?
Between 2020 and 2022, there were record levels of luxury purses.
Now known as “pandemic buyers,” they are re-entering the market, which leads to oversaturation. But the demand is relatively the same, so the prices dropped.
The only way the bag can maintain its value is when it’s:
- A heritage classic
- Limited edition
- Difficult to obtain at retail
Why buying preloved luxury makes sense
Buying new makes little financial sense with brands with weak resale value.
Why buy a $2000 bag when it can be purchased for $600 in excellent condition? It’s simple math.
Many first-time buyers will feel that a bag is “worth it” at the resale price, but not at the retail price. So, the preloved market is a smart resource, allowing buyers to:
- Avoid initial depreciation
- Access higher prestigious brands for less
- Rotate collections without a financial loss
Buying preloved is strategic and budget-friendly.
When should I buy a new luxury bag?
Buying a new luxury bag at retail price is still worth it! It depends on the occasion for you.
Whether it’s a travel purchase, milestone gift, or the start of a heritage item, you can justify buying retail for any reason.
In closing
If the resale value matters to you, then research the best designer bags to invest in before buying, as not all luxury brands are viewed the same in the preloved market.
But for other shoppers, preloved luxury is the smartest entry point. Why pay in full when there’s so much at the resale market? But I guess that’s great for secondhand buyers.