Modern Fenders - Good Investment?

[CamdenRob]

Being short of a crystal ball to tell whats going to be of value in the future, what do we think about the current crop of Fenders with regards to their investment value? Will modern day models be held in the same regard in 40 years time as loft aged 70s models are at the moment?

Which model will hold its value best? I'm assuming signature models would not be as popular as standard models, but what about the reissues?

I'm not looking personally to use a bass as an investment (although the returns would probably be better than my current crop of bonds). I'm merely thinking this would be a good way to justify a new bass purchase to MrsCamdenRob... Its an investment dear...

Rob

[skej21]

Who knows... The one thing that is certain is that Fender always put their prices up once a year. This has meant that the Geddy Lee Sig Jazz I purchased new for £600 with a hiscox case is now close to £1000 off the shelf. This doesn't always reflect the resale value though, so it's a tough one but the price increases mean that they are more likely to hold a bigger share of their purchase value.

[Rick's Fine '52]

[size=5][sub]I would say, based on history, that its inevitable, at some point, that certain models will be more desirable than others. Take the '82 Fullertons, or even the '82 JV's for example. I would firstly choose a bass you can enjoy playing, that suits you, then choose something more limited than a 'regular' issue. A Custom Shop model would probably hold its value more than a standard, but will it increase? For example, a regular Custom Shop Relic has been around the £1500 mark S/H now, for the last 7 years, with a rarer, more limited version being around £2k. Thats probably more a sign of the economic climate though, than anything else, although 70's Fender basses have more than doubled in the same period. Tells a story i think. Are they better basses?, not for me, but you asked about investment.[/sub][/size]

[CamdenRob]

Thanks for your input gents.

[quote name='Rick's Fine '52' timestamp='1375169501' post='2157384']
[size=5][sub]Are they better basses?, not for me, but you asked about investment.[/sub][/size]
[/quote]

Yes I'm not looking to get into a 'this bass is better than this bass' discussion, I'm talking from a purely investment point of view... Which from your sig it would appear you would know, wow what a list of gear!

Rob

[Shockwave]

Buying basses is generally a bad investment. Don't forget that more basses and guitars are being produced per year NOW then ever before. So they are unlikely to reach prices as high as current vintage instruments. Best find the cheaper vintage instruments now, and hold onto them.

[- Matt -]

[quote name='Shockwave' timestamp='1375170268' post='2157395']
Buying basses is generally a bad investment. Don't forget that more basses and guitars are being produced per year NOW then ever before. So they are unlikely to reach prices as high as current vintage instruments. Best find the cheaper vintage instruments now, and hold onto them.
[/quote]

I would agree with this. I bought an '81 Les Paul Custom 2 years ago and it's gone up by about 20% already and it's not that sought after yet. As instruments hit 30 years old they tend to become more collectible for some reason! Like the recent increases mentioned for the early 80's Fenders.

[fretmeister]

I don't think any volume made instrument is a good investment now. There are simply too many of them.

It's taken 30-50 years for the early ones to get to proper money. I'd bet 100 to 200 years for a current model.

These days I'd think you'd have to take a bet on which small but high quality builder will still be around - with the company surviving the death of the founder. So you can say 'built by the hands of...'

So early PRS, Fodera, maybe Huber, Parker before the company was sold. That sort of thing.

[Fat Rich]

I think the "Pre CBS were great" versus "CBS were rubbish" story gave sellers an excuse to price pre-CBS high and create a collectors market. And now most of the people who want an old Fender have presumably got one, and with pre-CBS so far out of reach for most people it's rubbed off on the 70s and now even 80s instruments as they're becoming quite rare.

I guess the same thing will happen with modern mainstream Fenders in the future, but probably not to the same extent due to the large number of instruments being made, the diversity of models and factories in USA, Japan, Korea, Mexico etc.

As an excuse I reckon you could swing it As an investment you'd need to get a bit lucky choosing an unpopular model now and hope that it gets "rediscovered" and becomes sought after in the future. When you factor in the cost of insuring it, depreciation due to wear and tear, and the sheer length of time it will take to become collectable it's probably not a spectacular investment. But you do get a bass to play in the meantime.

[Hutton]

I certainly hope that the early 80s Fullerton basses rise in value as I've got two of them in great condition.

[wateroftyne]

Not buying new would give you the best head start.

There are no guarantees, though...

[throwoff]

I always hark on about it on here but to me the clever investment if there is such a thing would be a Warwick, second hand prices are completely in the dumps right now.

You see German instruments that list around 3k going for 500 or under on here and Fleabay.

Regardless of their current popularity they are hand made, in Germany, craftsman instruments. I am sure eventually the market will reset and they will be desirable.

[molan]

Of all the current crop of new Fenders I think the American Vintage series might hold up well.

They've opened up at higher prices than the previous reissue models but I think this is understandable given some of the changes (and a new series will always start off high).

Fender claim they are genuinely more expensive to make and there's a quality jump from the Standard series. There's a chance that this might mean they won't keep them in production for a really long time unless they sell well.

Choosing a model with the best of the new features ought to help as well. The matching headstock J's are my favourites

[thodrik]

A good Fender bass will always hold its value reasonably well. Older Fender basses will continue to be more valuable, simply because they will become even older over time. Buy one you like and enjoy it.

[Musicman20]

I've played a fair few modern ish Fender's and a few older ones. I've also played some from the late 90s/early 2000s.

The worst Fender I ever played (and owned very briefly) was a 2000 - ish Natural American Jazz. Absolutely awful bass. Thin tone, poor fretwork, poor finish, and just plain uncomfortable.

I own the two (IMO) of the best Fender's I've personally played. I sold or sent back the rest, or just didn't bother even buying them. One is an American Standard Jazz and one is an American Standard Precision. Both are from 2009-, although are not the latest versions with custom shop pickups.

Both are lightweight, VERY well made, beautifully finished, and have perfect tone.

They cost less than the current higher prices, (one by a considerable margin of £350 and I bought it new!).

If you want an investment, you might be waiting a while, but the prices are creeping up so you might get it to hold its value.

If you want the great modern refinements, including the superb and superior bridge, get a modern Fender, (2008 onwards).

I don't have a lot of interest in vintage basses. Maybe this will change later down the line.

[njr911]

I played the 63 RI Precision last week and it's a wonderful thing. At £1700 new I think you'd be struggling to get your money back for a good few years yet.

[Musicman20]

I think the new Vintage re-issues really look great, and have a good set of features, but I wasn't impressed when I saw one close up...(the Jazz with the MHS).

[dlloyd]

One of the things to be wary of is to not look at the price of a 1954 Fender Strat and assume a modern instrument will go up similarly in price over the next 50 years.

In 1954, Fender sold far fewer instruments than they do now. They were hand-finished and cost a lot more than they do (in real terms) today. A standard stratocaster listed for $249.50, which was around £100 in those days. Taking inflation into account it would have cost the equivalent of £2,300... (not that you could get hold of one in the UK due to a trade embargo that lasted until 1959).

They're expensive now partly because they were expensive and rare back then. A closer equivalent to modern standard Fender prices would have been the cheaper Danelectro models that listed at $69 in 1954... approximately £700 in new money.

Edited July 30, 2013 by dlloyd

[chris_b]

Modern Fenders are being produced in such large numbers they will never be an appreciating asset.

If you want to get the best out of your outlay, get a good instrument and play it for the next 30 years.

[Musicman20]

[quote name='chris_b' timestamp='1375182897' post='2157652']
Modern Fenders are being produced in such large numbers they will never be an appreciating asset.

If you want to get the best out of your outlay, get a good instrument and play it for the next 30 years.
[/quote]

Probably very wise!!

[ead]

Don't forget to factor in inflation. Over the last 10 years this has averaged around 3% per annum so just to maintain its value over that period a bass bought in 2003 would need to be worth around 34% more now.

Over the same period, and despite one humungous crash the FTSE100 has pretty much doubled and that is ignoring any re-investment of dividends.

[LukeFRC]

I quite enjoyed reading this thread at work when the boss went out.
Modern fenders that I think will be worth a bit in the future? the Roscoe beck sig. and er that's it. unless something happens that makes something stand out then nothing made now really seems too exciting. What seems to be collectable is the stuff before or after a major change

[White Cloud]

To be honest I would say that the answer to the posted question is no.

[Dingus]

It all depends what you mean by investment . Do you mean appreciating in value so you can eventually sell for a profit , or do you mean a minimal depreciation so you will get a healthy proportion of your money back if you want to sell ? The answer to the first scenario is "no , not in the forseeable future but eventually maybe, to some extent " . The second hypothesis is the most realistic in the sense that a good Fender will always sell for a decent price and they are perenially popular . I can't think of many basses that are as saleable as a U.S.A - made Fender , particulaly if you chose a desirable model and colour .

[LukeFRC]

[quote name='Dingus' timestamp='1375207898' post='2158246']
It all depends what you mean by investment . Do you mean appreciating in value so you can eventually sell for a profit , or do you mean a minimal depreciation so you will get a healthy proportion of your money back if you want to sell ? The answer to the first scenario is "no , not in the forseeable future but eventually maybe, to some extent " . The second hypothesis is the most realistic in the sense that a good Fender will always sell for a decent price and they are perenially popular . I can't think of many basses that are as saleable as a U.S.A - made Fender , particulaly if you chose a desirable model and colour .
[/quote] problem is at the current prices you're still going to take a hefty whack in resale prices - the new american vintage reissues are £1700 or so! Secondhand at the mo you could buy a custom shop fender and have change!

[flyfisher]

Whatever they say, no one really knows. Same as any prediction.

There are loads of people who have successfully predicted good investments, but they are vastly outnumbered by all the people who have failed but who never carp on about it.

It's just a bet and the golden rule of betting is to never bet more than you can afford to lose.