When it comes to buying and selling equipment, it’s important to consider its value over time. Most items tend to lose their value as the years go by, and the price is determined by a number of factors. These include the original purchase price, the age of the item, its condition, any add-ons or modifications, and the market availability.
In the case of amateur radio transceivers, the general depreciation rate is about 10% per year. However, it’s important to note that this depreciation isn’t simply 10% of the new price each year. Instead, it’s calculated as 10% of the remaining value each year.
For example, let’s say you bought a new radio for $3,000. In the first year, the depreciation would be $300, and the radio would be worth $2,700. The following year, the depreciation would be 10% of the remaining value of $2,700, which is $270. So the radio would now be worth $2,430. The depreciation would continue to decrease each year based on the remaining value of the radio.
It’s also important to consider the impact of inflation over time. The value of money decreases over time, so the $3,000 you spent 10 years ago would be worth around $3,500 or so in today’s money.
To help calculate the current value of your radio, you can use a basic calculator that takes into account the original purchase price and its age. For example, using a 10% year-on-year depreciation rate and a 2% year-on-year inflation rate, you can get an estimate of the radio’s current worth.
Overall, it’s important to consider the depreciation and inflation rates when buying and selling equipment. While most items do tend to lose their value over time, some may actually start to increase in value after a certain point, usually after about 40 years, once they become collector’s items.
Below is a simple calculator that will give you a rough idea what your radio, or the radio you’re looking to buy, is worth.