Which luxury bags retain the highest resale value?

Which luxury bags retain the highest resale value?

If you're considering splurging on a designer handbag but are unsure about which brands to choose, I highly recommend focusing on brands that offer high resale values. Throughout history, four of the top brands known for their enduring value are Hermes, Chanel, Goyard, and Louis Vuitton. Investing in high-quality bags is a wise decision, as people often outgrow a bag or change their style over time. While trendy or novelty bags may be appealing and cute, not all of them maintain their value as well as classic designs. So, let's explore five designer bags renowned for their exceptional resale value.

Hermes Kelly Mini Bag

Over the past few years, the Hermes Kelly bag has experienced a significant surge in popularity, making it incredibly challenging to acquire a mini Kelly Bag. Nevertheless, despite its scarcity, I've added it to my wish list. Interestingly, as of 2022, the Hermes Kelly Mini bag boasts the highest resale value among all Hermes bags. In May 2022, its price stood at €5,900 in Europe and $8,000 in the US.

Now, here's where things get intriguing. On preloved sites, the prices of Hermes Kelly Mini bags start at €25,000 and can go up to €41,000 for special order bags. It's truly astonishing! The Hermes Kelly bag claims the top spot for the highest resale value among all the bags on this list. Just imagine spending $8,000 on a Hermes Kelly bag and then selling it for $41,000—a staggering profit of $33,000! It's truly mind-blowing.

The reality is that most Hermes bags hold a higher resale value than their retail price. However, the challenge lies in actually obtaining one. To sum it up, the Hermes Kelly Mini Bag takes the crown for the luxury bag with the highest resale value in 2022, offering an average return on investment of 212.5%.

Chanel Caviar Classic Double Flap

Undoubtedly, the Chanel Classic Double Flap bag in Caviar leather is widely regarded as one of the most exceptional luxury bags with a remarkably high resale value. While I appreciate the allure of lambskin leather, it is the Caviar leather option that truly stands out as a worthwhile investment. Caviar leather is known for its pebbled texture, durability, and resistance to visible scratches. In my opinion, Chanel Caviar leather maintains its quality and appearance better over time.

It is important to note that the Chanel Classic Double Flap bag in Caviar leather may not offer an immediate return on investment. It may require some patience before seeing a significant return. However, let's consider a scenario where you purchased a Chanel bag in 2015 for $4,900. Today, that same bag could potentially be resold on the preloved market for $8,000 to $10,000, depending on its size and condition. This represents a substantial increase of 100% in value. Chanel bags consistently command high resale prices and remain highly sought-after in the preloved market.

Hermes Birkin 25 Bag

The resale value of Hermes Birkin bags is indeed astronomical. In fact, the demand for these bags is so high in Paris that resellers often resort to recruiting local individuals to purchase them, paying a meager sum of $1500-$3000.

The Hermes Birkin is a bag that is not readily available to just anyone. Its exclusivity adds to its allure and drives up its resale value significantly.

On the preloved market, the average price of a Hermes Birkin is typically double or even triple its retail value. The more exotic or rare the Birkin bag is, the higher the potential resale price becomes. However, caution must be exercised when reselling this bag, as Hermes discourages and frowns upon this practice. There have been rumors of potential penalties for repeated reselling. As of 2022, the Hermes Birkin 25 in Togo leather has a retail price of $10,000 in the US, but it can be sold for $25,000, offering a remarkable return on investment of 150%.

Unlike the Chanel bag mentioned earlier, with a Hermes Birkin, you don't have to wait an extended period to see a return on your investment. These bags can be sold for a profit immediately, sometimes even the day after purchase. However, this raises the question of why more people don't engage in this practice. The truth is, Hermes bags are not as easily obtainable as one might assume. The limited supply and high demand make it challenging for most individuals to get their hands on a Hermes Birkin in the first place.

Louis Vuitton Bumbag

Louis Vuitton bags have proven to hold their value well, particularly when investing in timeless pieces. Among the current highly sought-after Louis Vuitton bags is the Bumbag. If you happen to own this bag but find it sitting unused in your closet, now would be an opportune time to sell it on the preloved market.

The spike in price on the resale market can be attributed to Louis Vuitton's decision to discontinue the Bumbag in 2022. Consequently, this bag will no longer be available for purchase directly from Louis Vuitton stores. As of May 2022, the Louis Vuitton Bumbag is being sold on the preloved market with a profit margin of around 119%. This means that not only can you recoup the full amount you initially paid for the bag, but you can also make a profit from its resale.

If you happen to own a Louis Vuitton Bumbag and it is currently sitting idle in your closet, selling it now could be a smart move to take advantage of its high demand and the potential for a profitable return on your investment.

Goyard Saigon Mini Structured Bag

The Goyard Saigon Mini bag is highly elusive in stores, resulting in a significant increase in its resale value. A general rule of thumb is that whenever a bag is difficult to find, available in limited quantities, or part of a limited edition, its resale value tends to surpass its retail price. The Goyard Saigon Mini bag perfectly exemplifies this rule.

Launched in October 2019, the Goyard Saigon Mini Structured bag has quickly become a coveted investment piece. If you are in search of a designer bag with a substantial resale value, the Goyard Saigon is an excellent choice.

Presently, the Goyard Saigon Mini Structured bag commands a return on investment of 111% of its retail price. Interestingly, certain colours like the blue variation even sell for 114% of the retail price. This demonstrates the exceptional investment potential of the bag. Investing in a Goyard Saigon Mini bag not only offers you a stylish crossbody option but also holds the promise of a fruitful return on your investment.

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