How do you determine the value of a used item? Is there some kind of formula to use?

Question:
my friend wants to sell me a CD player for my truck. he bought it for $120. he wants to sell it for $70. he used it a few times, and he bought it like 4 years ago. is this a good deal?

Answers:

I am in the market for a used car and i saw a 2003 cadillac cts for only 12900. The downside is it has 109K.?

The price of something new is a product of the labor it cost to make and and the raw materials it contains, among other things. Once something has been paid for, it is a matter of market demand that usually dictates the "used" price.

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best way to sell something like that is to sell it on ebay. Selling it locally will be a headache. With auction format you pretty much get market value most of the time.

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Look for what similar items are selling for on ebay. Typically, electronics drop to half their store price the day you take them home.

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Correra (below). new items are priced by market demand as well... the cost of making it doesn't matter, once its made.

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In my opinion "value" is determined by the amount someone is willing to pay... NOT what the person wants to sell it for.

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If there is not another CD player within 100 miles, and you have $70 to spend, then yes, you may be getting a good deal.

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However, if you live near an electronics store (or Wal-Mart, or whatever) and you can buy whatever you want, then you have choices.

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CD players are mechanical devices. A CD player banged around in a car for 4 years is probably not worth $70 - especially if your friend paid only $150 for it.

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The best way to determine fair value for a used item is to do a search on e-bay to see if that item or a comperable item is selling there (or has sold there recently) and what the asking price and/or the closing price of the auction was. This will give you a sense of what strangers in the real world are paying each other for the same item. Also, do a search for the item on the manufacturer's website to see if they are still making that item and what it is selling for new today. I would also check for any recall notices on the item to see if there were any problems with the model.
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