While we’re all used to hearing about how new cars lose 20% of their value the moment they leave the showroom, they aren’t the only culprits. In today’s world of rapid-fire tech updates and “fast furniture,” your net worth is under constant attack from things sitting right in your living room.
If you want to stop the bleeding, you’ve got to know which items are the biggest offenders. Here are six consumer goods that lose their value the fastest.
1. High-end smartphones
You might’ve spent $1,200 on the latest flagship phone, but don’t expect it to stay a four-figure asset for long.
Between the annual release cycles and the fact that batteries degrade the moment you start charging them, smartphones are a depreciation disaster. According to a 2024 report by Compare and Recycle, the depreciation curve is getting steeper even for the big players. For example, their data shows the iPhone 15 series lost over 55% of its value within the first year—a sharper drop than previous Apple models.
Android devices often fare even worse, with many losing significantly more value in the same timeframe due to the flood of competing models on the market. If you want to avoid this hit, read up on how to buy a used phone without getting scammed.
2. Fast furniture
That “some assembly required” dresser might look great in your bedroom today, but try selling it on Facebook Marketplace in six months.
Particle-board furniture has almost zero resale value because it’s simply not built to move. Mass-produced furniture made from MDF (medium-density fiberboard) deteriorates quickly and is often viewed as “disposable” with little to no resale market.
Once you take it apart or even just slide it across a room, the structural integrity takes a hit. Unless it’s solid wood, you’re lucky to get pennies on the dollar when it’s time to upgrade.
To make your money last longer, check out the 6 signs of high-quality used furniture before you shop.
3. Jewelry (with a big asterisk)
Jewelry is rarely a good financial investment for the average person.
When you buy a diamond ring at a traditional mall jeweler, you’re paying a massive retail markup. The moment you try to resell it, you face a harsh reality. According to data from Carat Trade, selling to a jeweler or pawn shop typically yields just 20% to 40% of the retail value. They’re paying you for the raw materials, not the “artistry” or the brand name you paid for originally.
If you do need to sell, make sure you know how to turn your gold jewelry into cash without getting ripped off.
4. Brand-new appliances
We’ve seen appliance prices jump lately, but that hasn’t changed the depreciation math. A refrigerator is like a car: it’s a “durable good” that people generally don’t want to buy used because of the hassle of moving it and the risk of it breaking down.
Insurance adjusters and claims specialists use strict depreciation schedules to determine value; for example, major appliances like refrigerators lose about 7% of their value every single year, hitting zero value in about 15 years.
But on the open market? It’s even worse. Try selling a used fridge for anything close to what you paid, and you’ll hear crickets.
5. Formal wear and designer clothes
I don’t care if it has a red sole or a fancy Italian name on the label; clothing is a terrible place to park your cash. Trends move at the speed of light, and the “it” bag of today is the “why did I buy that?” bag of tomorrow.
While ultra-rare items from brands like Hermes might hold value, the vast majority of clothing plummets in value. Standard depreciation guides for insurance claims often peg women’s dresses as losing 20% of their value annually. After a few years, that designer dress in your closet is statistically close to worthless. If you want to recoup some cash, here are 7 tips for selling your old clothes on consignment.
6. Laptops and tablets
Computer hardware is the king of planned obsolescence. With processors getting faster and software getting hungrier every year, a three-year-old laptop feels like a relic.
According to IT asset management firm GroWrk, laptops typically lose 20% to 30% of their value in the first year alone. Unlike a well-maintained car that can last fifteen years, a laptop is often nearing the end of its useful life after five.
If you’re buying brand new, you’re paying a premium for “peak performance” that will be eclipsed by a cheaper model in eighteen months.
When it’s time to upgrade, don’t just toss it—look at 5 ways to get rid of your aging electronic devices.
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