Do High End Appliances Depreciate?
So, you’re wondering about that high end appliance your thinking about buying, aren’t you? Whether or not it’s worth all the money and if it’ll hold it’s value after a few years of use. After all no one wants to throw they’re hard earned money away. You keep asking yourself, do high end appliances depreciate? Don’t worry, we’re going to go over that. As a Luxury Home Builder, I know that it can be quite shocking when you see the price tag of some of the appliances going into Luxury Kitchens these days.
Do luxury appliances hold their value? When you purchase an appliance of any sort, you can bet there’s going to be some level of depreciation for the first few years right after you’ve started using it. However, High end appliances, hold their value tremendously well compared to less expensive units and continue provide you with the beauty and performance your looking for.
That’s a good thing to know about luxury items, but don’t worry, we’re going to get into more as we go through the article: comparing a variety of brands, different appliances, finishes, and a lot more. If you’re interested in high end appliances and their long term value, keep reading.
I know that most of you already know what this term means, but for those that don’t read ahead.
Depreciation is described as a reduction in the value of an asset over time. This is most commonly understood with cars. You buy a new car for 40 grand and a year later it’s worth 30. That’s depreciation. Quite a few thing effect the rate that a car depreciates. For example the mileage, condition of the car, and how well your model retains it’s value overall. If you buy a collectible car like a new Ferrari, a year later they could be worth double what you paid. That’s not the case with your average Honda. Just as with cars, these principles apply to luxury appliances too.
Depreciation is described as a reduction in the value of an asset with passing time, particularly in regards to the wear and tear of the asset.
This is something that’s really important. Especially when you’re thinking about purchasing something expensive.
So do high end appliances depreciate? Yes, but an interesting thing about luxury appliances is that they don’t depreciate nearly as much as cheaper models do. In fact it’s not even close. Most high end appliances hold their values extremely well which is really good considering how much they cost. While cheaper appliances aren’t really worth anything once they’ve been used.
So it may feel like you’re putting a lot of money into something that may not be worth it. But as you’ll find out ahead, luxury appliances are definitely worth the money. They’re some of the highest quality home products you can find on the market.
The Best Luxury Appliance Brands For Resale
Viking was the first company with a professional range in the U.S. since the 1980s. The majority of high end luxury kitchens have a Viking range.
Viking has adopted an ever-increasing focus on product improvements, customer service and quality innovation. As a result of these efforts, the new Viking is better than ever.
In 2013, Viking became part of The Middleby Corporation, the largest commercial kitchen equipment manufacturer in the world. Tapping the resources and technological expertise of Middleby with Viking’s own heritage in the residential market, we have transformed our products and reached new heights in customer satisfaction.
The commercial cooking technology and innovation once reserved for only restaurant kitchens is available for your home; only from Viking. To make it even better, Viking is now infused with a new culture from Middleby under which we are continuously striving to ensure that our products, quality and service are the best available…
Viking also manufactures other kitchen appliances however their strength is by far in designing and building incredible kitchen ranges. They’re currently the standard in high-end kitchen ranges, a spot they’ve held for decades. Do high end appliances depreciate? Yes, but when it comes to Viking stick with their ranges. They have some of the best resale values of any high end range on the market mainly due to their name recognition, incredible quality and dependability.
As far as ranges go their by far considered #1. However their initial product launches of refrigerators, dishwashers, and other appliances can be problematic.
- Strengths: Cooking, Ranges
- Weaknesses: Reliability for anything other than ranges, specifically dishwashers and, refrigerators
Thermador is based out of California and has been manufacturing appliances for over 75 years. Credited with producing the first wall oven and downdraft. Bosch purchased Thermador in the late 1990s to add reliability to their industry leading innovation.
The newly redesigned Masterpiece and Professional Collections tell two distinct product and design stories while providing every necessary ingredient required for artful entertaining. Experience unparalleled performance and leading innovations across cooling, cooking, and dish care. Now featuring smart kitchen appliances enabled with Home Connect.
Thermador is also very strong in cooking, especially pro ranges, wall ovens, and induction. And they’ve recently taken steps forward into steam like many other brands.
They need to refresh their wall ovens and their single convection products, as well as add functionality to a few older models.
The most affordable of the 6 luxury manufacturers with great rebate programs. Do high end appliances depreciate? Yes, but when it comes to Thermador not that much. They have some of the best resale values of any high end fridge / freezer on the market mainly due to their excellent quality and dependability. In both these factors they’re routinely rate #1 by Consumer Reports.
- Strengths: Refrigeration, cooking, induction
- Weaknesses: Wall ovens need a refresh as well as their all gas pro ranges
Gaggenau is owned by Bosch. Founded in Germany in 1681. They’ve been on the cutting edge of style and technology and produce some of the finest appliances in the world.
Bosch’s purchase of the company energized the brand by redesigning and restyling their already stellar product lines. Now, Gaggenau is once again a trendy, attractive alternative to more popular luxury kitchen brands with trend-setting products like cutting edge steam oven.
The modern, bespoke kitchen design demands built in appliances that are made to work together. Stainless steel fridges integrating perfectly with large wine coolers. Ovens aligned with built in coffee machines, hobs seamlessly blending into Teppan Yaki. The choice of ultra luxury kitchen appliances is key to making the space work.
Gaggenau has had a convection steam oven long before Miele, Thermador, and Wolf, and it’s still the most versatile among high end units. They also have a full surface induction cook top allowing you to use any size pan anywhere on the cook top, up to 4 pans.
With Gaggenau, you have a distinctive, industrial style designed by Bang & Olufsen. Do high end appliances depreciate? Yes, but when it comes to Gaggenau it’s not that bad. As with all of these luxury brands they’ll hold they’re value much better than standard appliances. However here in America their not as well known as some other brands like Wolf, Viking and Subzero which can make resale a little harder.
- Strengths: Unique style, wall ovens, plumbed steam oven, ventilation, induction
- Weaknesses: Limited offerings, controls can be hard to learn
Miele has an unwavering commitment to quality with over 100 years in the appliance industry.
Their wall ovens, coffee systems, dishwashers and laundry, are all excellent products with incredible reliability. Miele has joined the ranks alongside Wolf by introducing a pro rated range in 2014 with some great tech.
Their 48-inch pro range has a built in microwave warming drawer with steam assist. Their pro range, as well as some of their wall ovens, connect to a water line for steam cycles which is a fantastic, high-end option.
Miele makes cooking easy with their M touch series ovens and ranges along side their Master Chef system which automatically cooks food for you.
Do high end appliances depreciate? Yes, but with brands like Miele it’s not that bad. They have some of the best resale values of any appliances on the market, especially their dishwashers.
- Strengths: Cooking, dishwashers, and 24-inch laundry
- Weaknesses: Hood needs to be sized bigger than the range, modern styling may be a turn-off to some buyers
Sub Zero / Wolf
Don’t buy a Sub-Zero refrigerator for name recognition, buy it for 2-compressor performance, air scrubber, vacuum seal, and a water purifier all maintaining food fresher and longer than the competition. Sub zero is by far the best refrigerator on the market.
For over 60 years, Sub-Zero has been family-owned Madison, Wisconsin company successfully competing against the largest appliance companies in the world.
Sub-Zero bought Wolf 15 years ago and revolutionized cooking with the double convection technology and great simmer capabilities on each burner. Wolf ranges, due in part to their much desired red knobs, have become a staple of luxury kitchen design.
Sub-Zero still outperforms every other manufacturer on the market when it comes to refrigeration remaining the standard for our industry. Do high end appliances depreciate? Yes, but when it comes to Subzero / Wolf not that much. They have some of the best resale values of any luxury appliances on the market.
- Strengths: Best refrigerator, great cooking, trendy “red knob” range
- Weaknesses: All gas pro needs better output
La Cornue is a French custom line that introduced the first chateau range in 1964. They offer custom-made ranges in sizes ranging from about 3 feet wide all the way up to 6 feet wide.
In addition, they also offer large island ranges, cabinets, and cook tops. Tons of color choices add to the customization. La Cornue specializes in customisable cooking with tons of options. For example, you can have dual ovens, one gas, and one electric in a variety of sizes and colors.
You can also choose the cook top configuration with options such as gas, electric, induction, and/or a French top.
The Chateau range is a top of the line luxury appliance. Fully customizable so you can pick induction, gas, french top, grill or griddle elements plus a wide range of color and size options.
Their gas ovens have an arched top so air flows naturally without a fan assist. Because of this feature it’s considered one of the best ovens for baking.
You can spend $7,500 on a 36-inch wide range or go all the way up to $160k for a much larger and more elaborate La Cornue. Do high end appliances depreciate? Yes, but when it comes to La Cornue it’s tricky. They have one of the best resale values of any range on the market but because some units can be incredibly expensive potential buyers may be limited. However some models are so scarce they’ve actually become collectible and sellers actually got more money than what they paid.
- Strengths: The range
- Weaknesses: Pricey
What Makes High End Appliances Last So Long?
One of the most important things that really helps in making a luxury appliance last is the quality of production. That’s really what it will always come down to. You don’t become a world renowned luxury brand by making crap. Reputation is everything when it comes to anything considered high end. If you’re looking for something to last, you need make sure that it was built with good materials and that’s what you get with each of these brands.
Each of these manufacturers has a solid reputation spanning decades for making only the best quality high end kitchen appliances. However each brand has their strengths and weaknesses. If your looking to maximize resale value then buy when each manufacturer is best at and most well known for. Unless you want a matching appliance set this strategy will net you the best resale value possible.
Building the average kitchen appliance is a fast process done mostly on an assembly line. Luxury brands however take much longer and in some cases are done by hand. Each and every single appliance manufacturer listed above is dedicated to crafting something that’s going to last for generations.
What’s The Lifespan Of A Luxury Appliance
Do high end appliances depreciate? Of course they do. But the average lifespan of a generic kitchen appliance is 5-10 years. However more than 85% of the luxury appliances manufactured in the last 100 years are still in use today. There is a significant difference between how long a luxury appliance lasts vs one you can buy from your average retail store.
Because of the time they take ensuring each appliance is crafted well, you won’t have to deal with as many maintenance costs. And luxury brands tend to offer the best warranty because they know they’re appliances won’t break.
Having a world renowned company standing behind each product they sell with an industry leading warranty should help put your mind at ease about the price tag. Even though these brands are all expensive to buy, they’ll last a lifetime and hold their value far better than cheaper brands will. I’ve seen cheap appliances break down after a year of use and I’ve seen luxury appliances that are 50 years old still being used as if they were brand new and still worth more than half their original purchase price. Now you decide which is the better long term value.
What Makes High End Appliances Different?
So, we talked about what makes luxury appliances last so long, so let’s talk about some of the things that makes them different from other cheaper appliances that we may be used to seeing.
Like I mentioned above, one of the main things that you can really notice when you first see luxury appliances is the fact that they definitely don’t look like other appliances on the market. Because of how beautiful they are, when you see them in a kitchen, it definitely makes an impact. High end models become a lot more than just the function they’re designed to perform. They’re almost like functional works of art in a way. Utilizing luxury appliances along with other things like tile, cabinets, countertops and islands can make a kitchen so much more than just a room you cook food in. Which honestly, isn’t really what most people do in their kitchen nowadays anyway.
Because of how beautiful they are, when you see them in a kitchen, it definitely makes an impact.
You’re also able to trust that you’re going to have an easier time using a luxury appliance. Mostly because luxury brands tend to be bigger and offer more additional features and options than cheaper brands do.
The interior of these units really reflects the outside. Company’s have tried to keep moving the industry forward creating products that are beautiful to look at inside and out, functional and dependable. Not an easy task for a manufacturer of any product.
Are High End Appliances Worth The Money?
Are High end appliances worth the money? Do high end appliances depreciate? The answer to both questions is yes. There’s definitely some big numbers you’ll have to pay when shopping for luxury brands. But the question is really if the sticker price is worth it in the end? Take a look above at the study we did of Wolf range depreciation values based on actual eBay sales. These are all used PRO models, less than 10 years old and not in perfect condition. Each model was scratched, scuffed, chipped or dented.
Wolf Has An Average Depreciation Rate Of Only 15%
Referencing the chart above you’ll see that Wolf ranges have a very low depreciation rate of only 15% on average over a roughly 5-10 year span. That’s even when considering being used and with some minor damage. The Wolf Pro 36″ only went down in value a surprising 7%. Think about that compared to the average 5-10 year old stove that’s worth next to nothing in terms of resale value.
Luxury Brands Make You Feel Good
There’s no doubt luxury brands are designed to make people feel good. It’s not just the status that comes with owning them but more importantly because they’re better. In just about every way you can compare a low end model to a higher end one, the luxury model wins. Looks, options, durability, dependability, size, warranty, and most important for the sake of this article, long term value.
Now that doesn’t mean you can’t cook a great meal on a cheap GE stove. But there’s a lot more you can do with a high end 48″ PRO Wolf range than you can with a 32″ GE. Not to mention that after 10 years that $15k Wolf range will be worth $10k – $12k and that GE will be worth somewhere around $0.
There’s a reason commercial kitchens only use high end appliances. It’s because they’re better. Plain and simple. And they’re really cool to own. I like using high end appliances. They look really cool and have all sorts of modes and functions cheap brands don’t have. Using them makes me happy and that alone is worth the extra money.
There’s no doubt luxury brands make people feel good.
Luxury Appliances Are A Necessity
If your building a high end luxury home or live in a luxury apartment somewhere, then high end appliances are a must. End of story. Your not getting a million plus for a home with cheap appliances unless all the values in the land and they don’t care about the house. If you’re worried about the resale value for a piece of high end real estate you own then you need a high end kitchen. Plain and simple. If we build a multi million dollar home and the kitchen doesn’t look amazing then we won’t get top dollar. That’s assuming we can sell it at all.
High end real estate isn’t as easy to sell as something cheap or in the mid range of the market. Buyers in the market for a multi million dollar home demand certain things. One of those things being high end appliances. Wolf or Viking ranges are a standard with a Sub Zero or Thermodor fridge. Throw in a high end wine chiller, garbage disposal, a dishwasher or two and a beautiful sink. Appliance packages can easily run us 50 grand, but after 20 years, homeowners could sell those appliances for 30 – 40.
Luxury appliances are definitely worth the expense. That’s something that really makes these company stand out from the rest.
Second Hand Luxury Appliances
Your asking, do high end appliances depreciate? And the answer is in most cases yes. But they depreciate very little compared to other kitchen appliances. The secondary market is the reason. Everyone wants to buy a luxury brand, they just can’t afford it so they go with cheaper options. Just as with any luxury item like watches, bags, cars or boats. On the secondary market buyers can get a slightly better deal than if they bought new.
Best of all, because high end appliances are so durable, it’s better to buy a high end appliance from the secondary market than it is to buy a cheap appliance new. These things really do last forever when maintained. Even if you buy a Wolf stove for 8 grand that was 12 new, you can sell it in 10 years for 4 or 5. What’s a stove from Home Depot gonna be worth after 10 years? Absolutely nothing I’d guess.
This is true of all these luxury brands. A search online will conform what we’re saying. High end used appliances are selling for almost as much as the new ones in some cases. And the higher end you go, the better the resale value can be as some of these appliances are considered commercial grade.
Best Appliances For Resale Value
Buying a cheap appliance is like throwing your money away. Plain and simple. You may as well just burn your cash. The resale value on a standard appliance from Best Buy in 5-10 years is somewhere around $0. However a luxury appliance will always be worth something. Do high end appliances depreciate? Yes, but not nearly as much as cheap appliances do, in fact it’s not even close. One reason why their the best appliances for resale value is because they don’t depreciate much.
The point here is that luxury appliances will always be worth money and are easy to sell. Try getting rid of a old 10 year old stove, you’d be lucky to get 10 bucks for it. Now try selling a 10 year old Wolf range, you’ll get thousands and sell it in a day. You do the math, what’s the better long term value?
It’s like buying an Apple laptop vs one made by Microsoft. The Apple will be more expensive but you can easily sell it in 5 years for over a grand while you can’t give the Microsoft away. Some brands just hold their value much better than other because people want them. It’s simple supply and demand.
Don’t throw your money away by buying cheap appliances. Invest in luxury brands that hold they’re value and last for decades.
Don’t however put luxury appliances in a $250k house. It’s a waste of money and you won’t see a good ROI. Make sure the investment in luxury fits the market. Do your research and see what other sold homes in the area have included in their kitchens. There’s a sweet spot you want to stay within. Don’t over kill it but don’t install crap either if your selling property in the luxury homes market.
Are High End Appliances Worth The Money?
Are high end appliances worth the money? The answer to this commonly asked question is almost always a yes. Let’s list some of the benefits of high end appliances and then talk about why they’re generally worth the money.
- Best resale values by far of any appliances.
- Lowest depreciation rates.
- Best performance compared to other kitchen appliances.
- Best looking.
- Longest lasting with the best warranty.
- Very easy to resell.
Now when you look at all these benefits how can you not answer yes to the question, are high end appliances worth the money? There are so many benefits to owning them compared with buying cheaper appliances.
If your looking at it from the standpoint of an investment or resale value then its not even close. Over time luxury appliances depreciate very little and are easy to resell. If you want the very best because your into cooking then again it’s not even close. A Wolf or Viking range blows away the competition, so does a Sub Zero or Thermador fridge, a Miele dishwasher or a Gaggenau built in. If you want something that’ll last a generation then high end is the only way to go. They last the longest and have the best warranty.
In our opinion high end appliances are definitely worth the money no matter how you look at it.
Do High End Appliances Increase Home Value?
If your designing a luxury kitchen then how can you not buy high end appliances. They’re 100% required. Answering the question do high end appliances depreciate doesn’t really matter when your designing a luxury kitchen because you have no choice but to include them. You can’t have a high end kitchen without high end appliances. The question you have to ask is do high end appliances increase home value and the answer is yes and no.
Let’s look at no first. The reason they don’t actually increase value is because their in every luxury home. It’s a standard that you can’t ignore. Just make sure to match the appliance package with the value of your home. Look at what’s included in the sold homes around you at various price points and design accordingly.
Now let’s look at why the answer to do high end appliances increase home value is a yes. It’s because not including them will really hurt your resale value. To get a premium price for any luxury home high end appliances are a part of the deal. Take them out of the equation and you’ll get less money. Plain and simple.
Now, there’s no rule that says the appliances have to be brand new. If they’re in perfect condition then they’ll do just fine. You can design your dream kitchen and save thousands by purchasing luxury appliances from the second hand market while preserving your resale value.
This popularity on the second hand market is one reason why high end appliances hold their value so well, no one would ever just throw them away like they do with a cheap stove or fridge.
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