Are tools investments ?

[chips&more]

Dave, put me in your will, and I will put you in mine. I think either of us would have to spread the inheritance around to people who could use it, due to lack of places to put more stuff.

Very nice gesture, but I’m not sure my family would agree. Even though they are totally clueless when they look at the stuff in my shop.

 

[C-Bag]

I know this is going to be seen as some belly button gazing, but the whole idea of "investment" has kinda changed as far as I can understand. This is supposed to be a hobby site so when I hear investment I have gathered the impression over the varying forums I frequent that the hobbyist expects that his investment is going to be worth as much or more when and if they decide to sell whether to upgrade or just get out of the hobby.

This is vastly different from a person either in the trade or business owner. They invest because they are going to make $$ with the tools so it helps with the return on investment. And they are usually keyed into the idea of depreciation. This in my world is not how it works for a hobby.

It makes me wonder if this has always been this way just because of that cited phenomenon of ownership inflated price or if Antiques Roadshow, eBay and all the spinoffs like Pickers etc just inflated it?

I see time and again where somebody who bought a machine tool like a South Bend or Atlas and has gone through it and painted it and is trying to sell it on CL for what they have into it. For me the price is more than I can buy a new machine, but I have no idea if the guy rebuilt it as far as scraping it in correctly or just made it look pretty. Just like buying a restored car I guess, it's all a crapshoot.

 

[benmychree]

Just try to sell something on e bay for what you have paid for it; probably 95% of the time, (my uneducated guess) you will have taken a bath, unless you were there to buy when an object has been incorrectly listed, or some other fluke existed.
But then, it's all about buying and possessing; he who dies with the most wins! Having said that, pity the person who has to dispose of it all !!

 

[C-Bag]

I only seem to accumulate and not sell anything. Heaven knows I've tried. If it's not total trash it goes to Goodwill or somebody like it as I can't stand to have already discounted something to a rediculous level only to have somebody want to dicker in a yard sale.

A friend of mine sells weird antiques on eBay and does really well. We were riding along in the car one day and I see him look at his phone and go wow! I asked and he said he'd gotten a small box with un posted cards for a nickel in a yard sale. On the auction it went for over $100. It's a stark example of why I have a permanent filter on eBay that only shows the "buy it now" listings.

 

[BGHansen]

If you buy good used equipment or tools, you should come close to getting your money back. Stuff depreciates to a low then hovers there as long as it works. Caveat is how you dispose of it. Have an auctioneer come in, you'll be paying a commission.

Buy new and you're looking at a 60% - 75% return on your money or less. I bought a G0709 lathe 2 1/2 years ago for around $4500 delivered. Added a taper attachment, 5-C collet closer, 1/64" increment set of 5-C collets, around 35 QCTP holders with boring bars/cutting tools, DRO, 8" set-tru chuck, etc. Probably have $7500 into the lathe and accessories. If I sold it as is, I'd start at $6500 and hope to get $6000. I have a number of Starrett and Inerapid micrometers and indicators which were picked up for around 30% of new price.

Bruce

 

[mmcmdl]

If you buy good used equipment or tools, you should come close to getting your money back. Stuff depreciates to a low then hovers there as long as it works

Bruce , you hit the nail on the head . This is exactly what I meant !

 

[David S]

This is a very interesting question, and I have never thought about it before. I am a hobbyist and I purchase stuff to perform a task or tasks. I buy stuff that I need when I can afford to.

And I am not too concerned about buying used stuff, although the only thing that I purchased used of any value was my Atlas 618 lathe some 50 years ago. I guess I treat the things I buy that same as a car, which I consider a necessity and don't worry about its ultimate value.

Now regarding purchasing the best I can afford or that others would consider the best. As a hobbyist with a limited budget, I would not be able to enjoy machining as much as I do, if I couldn't purchased less expensive imported tools, cutters etc. There have been some good reviews on this site indicating that for the hobbyist, one can make very good purchases from Asia.

When the time comes that I can no longer use my shop....yikes not sure how to prepare for that, but probably should.

David

 

[kd4gij]

If you use the tools for a living. Then they are an investment in your future, as you will get back many times your investment over the years.

 

[dbq49]

If you use the tools for a living. Then they are an investment in your future, as you will get back many times your investment over the years.

Having both metal and woodworking tools, I find that when a tool goes down I still try to fix it. Even my quality Milwaukee, Bosch, Makita electric tools are so old that I can no longer get parts. Recently found a switch for a Bosch reciprocating saw on Ebay that E replacement parts said was no longer available, you bet I ordered it and is now working again. Parts are always the problems when you have tools. Yes, parting out tools and parts COULD make you some return but you need to find a buyer. I told my grandson that these were going his but at 10 it means little. At every he visits, we try some welding, turning, operating a back hoe and again when your young it is all fun. It is my hope that I live long enough to teach him the importance of these "work" tools. I keep showing him what CAD can do and how it will make products for him when he gets a 3D printer. So much teaching, so few years left.

 

[Silverbullet]

I'm a tool collector , last summer I needed money since I havent done any resale on mowers . I had an old wood workers bench with the two wood vises for hand planning and more. Well I paid $50. For it about thirty years ago I sold it for $1,850 . I'd say tools are good investments my wife loves the three percent she sees hates my buying tools . Who makes more her bank or mine. She just don't see the big picture. Sold a singer 29 sewing machine for $750 I paid $125. About 5 years ago.