I want to share one of my tricks for smart financial shopping, and that is investing in luxury handbags! For those of you who are newbies to the luxury fashion game, this is a great way to spend your money wisely and eventually get that money back in the future once the bag no longer excites you, or you just want to fund for another style instead.
Below you will find a collection of handbags that I truly believe to be the best investments. The “holy trinity” – Chanel, Hermés, and Louis Vuitton.
Chanel Medium Classic Flap
Classic, sophisticated, and iconic! This bag is one of my very favorites and perhaps the most versatile bag I own. According to many posters on The Purse Forum, the Chanel flap has increased 70% in the past six years, which means if you bought it now at retail for $5,600, it just may be worth $9,520 in another six years. Not a bad investment if you ask me!
I also know that in the year 2008, the medium flap retailed for $2,450, which means that in over 11 years it has increased close to 130%! Of course these kinds of numbers are not the case for every designer handbag, nor the case for every Chanel, so you must keep in mind how much your bag may appreciate in value due to its past history, and when would be the best time to resell it.
Chanel Boy Bag
$4,500 – $5,400
Although not as great an investment as Chanel classic flaps (mainly due to them still being “recent”), the Boy bag certainly has risen in price since it was first released in 2011. Named after Coco Chanel’s lover, Arthur Capel (nicknamed “Boy”), the structured and minimally chic bag is a must-have, not only for it’s boyish charm but for the fact that in the last five years alone the price has gone up at least 70%! The boy bag comes in three sizes; small, old medium, and new medium. The small one is the very best for that perfect crossbody look, although the old medium is definitely the most popular size for everyday.
Hermés Birkin Bag
$12,000 – $300,000
Known as the most coveted and one of the most expensive luxury handbags on the market, this bag has more than earned its spot as a fantastic investment you can make when purchasing a handbag.
Back in the 1980s, you could get an Hermés bag for the standard price of $2,000. However, after the Birkin’s launch to fame in the early aughts, it began retailing at $4,000 and ultimately climbed the MSRP ladder up to its very extravagant current price tag.
The price varies every year (usually between 5% to 10%) and is based on a variety of factors (i.e. skin, hardware, etc.), although always at the discretion of Hermés. In some circumstances, a Birkin bag could be a stronger investment than diamonds, gold, or even real estate, well according to some collectors who say so. Even better, these bags were made to last and be passed down for generations.
This bag symbolizes wealth and exclusivity due to its high prices and long waiting lists. It is really hard to even get your hands on a Birkin. Hermés has to decide if you are worthy of the bag by providing your loyalty to the brand with a substantially high sales history.
Hermés Kelly Bag
$9,350 – $300,000
Just like with the Birkin, the Kelly bag’s waitlist is endless. Known initially as the Sac à dépêches when it was introduced in 1935, it was renamed the Kelly 20 years later in 1956 in homage to Grace Kelly, a life-long fan of the style who famously used it to shield her first pregnancy from paparazzi.
I truly adore my Kelly bag, and especially when I think how long it takes artisans to create just one — 25 hours! The bag is very exclusive and rather rare, making it difficult to find, which of course makes for better resell value if you ever do decide to resell!
Louis Vuitton Neverfull
The Neverfull lives up to its name in that it will truly “never be full”. It has also been tested to carry 200 plus pounds! I personally own the GM size which fits everything and more, and let me just tell you what a fantastic travel bag this is for plane rides. I use it to hold Zayden’s toys and snacks, and it’s incredible how easily it slides underneath the seat in front of you.
The Neverfull GM in the Damier Ebene was my most worn Louis Vuitton handbag I owned, and I received it as a sweet 16 gift. Many days in high school, instead of using a traditional backpack, I wore this tote to carry my books and myriad of school supplies. It NEVER let me down. Plus, it’s still such an iconic and popular style that has vigorously risen the MSRP ladder in 12 years, making it a rather fine investment if you ever want to resell one in the future.
Now of course you won’t make the same small fortune you would on a Birkin bag or on classic Chanel bags, but you would at least make back most or all the money you used to originally buy one, so long as it is in good condition. The Never full first went on the market in 2007 in three sizes: PM, MM, and GM, with the MM’s proportions being the most coveted. The prices were beyond reasonable for such large handbags; the PM retailed for $550, the MM retailed for $620, and the GM retailed for $665, although the prices quickly rose a couple hundred dollars soon after. Now 12 years later, the prices have gone up about 125% and are $1240 for the PM, $1320 for the MM, and $1400 for the GM. You also now have an attached pouch inside the handbags, similar to the one inside the Goyard St. Louis (ANOTHER fantastic bag by the way!).
After doing some digging on Postmark and other resell apps, I found that most people do make back at least 90% of what the paid for their Neverfull… not great when compared to a Birkin or Chanel, but still wonderful numbers if you ever needed a little extra cash or are just bored with your bag collection.
So there you have it snobs! Investing in right designer handbags is a great way to invest your money. My husband is very business savvy and when I educated him on Hermés and how bag appreciate in value, he jumped on the orange bang wagon.
~ Bon Voyage, Snob World