Rapid Depreciation: Cars & Textbooks
We're used to hearing about how any vehicle you buy new will depreciate faster than you can write its monthly payment. What we don't hear a lot about is how much faster college textbooks depreciate.
My friends from Serbia bought a text book on June 30 for her Environment and Man biology class. It's your typical general education course that can meet the biology requirement for a liberal arts degree. Anyway, she pays over $100 for a new text for this four-week summer course. Today, she tried to tell it back. Are you sitting down? The bookstore clerk offered her $16 for it. Now, I rounded down to $100 to make the math easier, but how did that text lose 84% of its value in less that four full weeks?
Let's play with the number for a bit, shall we? The class met 20 times. 84 divided by 20 is 4.2% per day, each day the class met. Imagine if your brand new $40k SUV (can you get one for that?) lost value at the same rate as this biology book! Purchased on December 1, 2006, your new gas-hog would be worthless to the dealership before you went to bed on Christmas Eve.
I'm not upset at the local bookstore people, don't misunderstand me. They are following company guide lines for buying back books. What distrubs me is that if that edition of the text will be used this fall semester, this now used text will be resold for over $80.
Fred

