Quote:
Originally Posted by jmg
Interesting analogy about smartphones. I tend to get a new one every year or so. My logic is to get the most expensive feature packed phone, currently the iPhone XS Plus, which cost $1300 iirc then sell it the next year while the value is still high. Unlike cars, depreciation is not steep. It actually gets worse over time instead of losing most initially. I can sell this phone for $900 next year bringing the total cost to $1300-900=$400.
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So by that math after 5 years you've lost 5x400= $2000 in depreciation swapping phones every year.
Apple iPhone 6s I bought in 2014 for new $750. Traded it in 2017 for a pixel 2xl ($230 trade in credit on a $900 pixel). So in 5 years I've lost about $500 in depreciation. Granted i'm not counting how much my pixel has depreciated in the last year and a half.
if you keep getting the latest stuff with regards to cars or phones or whatever its still going to eat you. just depends on how much of that you are comfortable with.