Used good
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A second-hand or used good is one that is no longer new or a resource that has been partially or completely depleted.
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[edit] Sale of used goods
Used items can often be found for sale in thrift stores and pawnshops, auctions, garage sales, and in more recent times online auctions. Some stores sell both new and used goods (e.g. car dealerships), while others only sell new goods but may take used items in exchange for credit toward the purchase of newer goods. When an item is no longer of use to a person they may sell or pawn it, especially when they are in need of money. Items can also be sold (or taken away free of cost) as scrap (e.g. scrap metal). Owners may sell the good themselves or to a dealer who then sells it on for a profit. However, because the process takes some effort on part of the owner they may simply keep possession of it or dump it at a landfill instead of going to the trouble of selling it.
[edit] Purchase of used goods
The strategy of buying used items is employed by some to save money, as they are typically worth less than the equivalent new items. Purchasing used items for reuse prevents them from becoming waste and saves costly production of equivalent new goods. Motivations for purchase include conserving natural resources and protecting the environment, and may form part of a simple living plan.
Despite this, many people prefer to buy most or all of their goods new. They may feel safer buying new because a warranty is provided or because they are concerned they may be buying stolen goods. Goods purchased secondhand may also be exempt from certain legal requirements (e.g. consumer protection laws). Other consumers may be willing to buy used, but simply do not know where to buy them or lack the expertise needed to make a good purchase (e.g. a used car). Haggling may be involved in purchase of used goods, especially in less formal situations like a yard sale. Some consumers are uncomfortable or inexperienced in this situation too, and may choose to buy new goods instead. However some simply prefer their goods brand new and/or feel secondhand items are inferior or shabby (the 'yuck factor').
[edit] Depreciation
Depreciation is a term used in business to measure the decrease in monetary value over a good's economic lifetime. Most goods depreciate in value over time, some very quickly and others more moderately. Certain goods may however remain at a fairly steady value or even appreciate in value (e.g. jewellery and antiques). In this case used goods may be a form of investment.
[edit] Hand-me-downs
When a person gives an item of some value that they have used to someone else, typically an acquaintance or family member, it is sometimes referred to as a "hand-me-down". Vendors would typically keep their new, more expensive clothing at street level, while keeping their older, used clothing on racks that were elevated out of reach. To purchase the latter, buyers would have to ask the stall owner to "hand me down" a particular piece of clothing.
[edit] Types of used goods
[edit] Used cars
Used cars are especially notable for depreciating in value much faster than many other items. Used cars may have been bought or leased by their previous user, and may be purchased directly from the previous owner or through a dealer. George Akerlof published a paper entitled "The Market for Lemons", examining the effects of information asymmetry on the used car market. Used cars may require more maintenance or have fewer features than later equivalent models.
[edit] Used clothes
Used clothes are often donated to charities which sort and distribute them for free or a reduced price in poorer areas. Used clothes unsuitable for sale in America or Eastern Europe may still find a buyer in Africa or another continent. Occasionally used clothing is sold on the Internet. In particular, the auction website eBay has a policy stating that used garments must be completely clean before being listed for sale, and listings for underwear are not allowed at all.[1]
[edit] References
- ^ Used Clothing - eBay policies. Retrieved 31st December 2006
