Used good
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A second-hand or used good is one that is being purchased by or otherwise transferred to a second or later end user. A used good can also simply mean it is no longer in the same condition as it was when it was first transferd to the current end user. Used goods may be transferred informally between friends and family for free as "hand-me-downs" or they may be sold for a fraction of their original price at garage sales or in church bazaar fundraisers. Governments require some used goods to be sold through regulated markets, as in the case of items which have safety and legal issues, such as used firearms or cars; for these items, government licensing bodies require certification and registration of the sale, to prevent the sale of stolen, unregistered, or unsafe goods. As well, for some high-value used goods, such as cars and motorcycles, governments regulate used sales to ensure that the government gets its sales tax revenue from the sale.
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[edit] Types of transfers
Many items that are considered obsolete and worthless in developed countries, such as decade-old hand tools and clothes, are useful and valuable in impoverished communities in the country or in developing countries. United States taxpayers can deduct donations of used goods to charitable organizations. Both Goodwill Industries and the Salvation Army web sites have lists of items with their estimated range of values. Another way that people transfer used goods is by giving them to friends or relatives. When a person gives an item of some value that they have used to someone else, such as a used car or a winter coat, it is sometimes referred to as a "hand-me-down".
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. For example, some musical instrument stores and high-end audio stores only sell new gear, but they will accept good quality used items as trade ins towards the purchase of new items; after the store purchases the used items, they then sell them using online auctions or other services.
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. a broken-down old car will be towed away for free for its scrap metal value). 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. It has been common to buy second-hand or used good on markets or bazaars for long time. When the web became popular for more and more people, it has also been very common with web sites such as eBay and Yahoo! Classifieds where you can buy second-hand items.
[edit] Purchase
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 or in pawnshops, where negotiation is often done. 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'), especially in the case of clothing or items used for eating such as plates or cutlery.
[edit] Types
[edit] 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. For used plug-in or all-electric vehicle batteries, see V2G.
[edit] Other items
The Sierra Club, an environmental organization, argues that second-hand purchasing of furniture is the "greenest" way of furnishing a home [1]. Used clothing is often donated to charities which sort and distribute it to low income people for free or a very low price. Rather than distributing the clothing directly, some organizations will sell collected clothing in bulk to a used clothing redistributor, and then use the raised funds to finance either their charitable or for-profit activities, as they see fit[2]. Used clothing unsuitable for sale in an affluent market may still find a buyer or end-user in another market, such as a student market or a less affluent region of a developing country. Vintage guitars also became increasingly desired objects among musicians and collectors during the nineties and afterwards.
[edit] References
- ^ http://sierraclub.typepad.com/greenlife/2008/09/green-your-re-1.html
- ^ Old duds, big bucks; Clothes you think you're donating to charity are frequently sold for profit Toronto Sun, 2007-Jan-11, retrieved 2007-Apr-16.
[edit] See also
- Auto auction
- Flea market
- Freeganism
- Nagi
- Regifting and Regiving
- Secondary market
- The Market for Lemons for a description of a phenomenon that may make it difficult to maintain quality in markets for certain used goods, such as computers and cars
- Atomic Ed and the Black Hole, a documentary film about a unique second-hand shop
[edit] External links
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