Which is the better Investment, MIA or MIM?

[Caleb Mills]

Am I the only one that doesn't care about resale value and don't look at my instruments as an investment? All I care about is how it plays and sounds. Besides, The miniscule amount of difference in profit you might gain between the two species of Fenders is negligible. J

Exactly.

I agree with this. A lot.

 

[Son of Wobble]

....

LOL. I always wanted one of those. Cool guitars.

Aren't they beautiful? P-bass of guitars in their simplicity.

 

[CGremlin]

Am I the only one that doesn't care about resale value and don't look at my instruments as an investment? All I care about is how it plays and sounds.

Not at all. I own four instruments that *might* turn a profit if I tried to sell them, but I like them too much to let go of them.

 

[ColonelZulu]

When considering an investment in working capital, you have to consider the law of diminishing marginal returns. In this case, since you are only one labor resource, having one bass is enough. As long as that bass facilitates your performing in a manner where you can earn from your labor, then it's an effective investment.

If I'm going to be able to earn more by playing a Wal than a cheapo bass, then I have to consider the extra earning potential and offset that against the depreciation of the bass. It may be worth it, but I seriously doubt it.

It's like if I buy a super expensive titanium head composite resin handled axe that doesn't chop wood any faster, easier, better than an old ash and carbon steel axe. That would be a bad investment...unless it lasts longer and let's me keep my maintenance/replacement costs down enough to cover the difference.

In that scenario, I could also spend more on a nuclear fueled chainsaw. I could cut the wood so fast, that I could make more money than chopping it. But that's just potential earnings. I have to make sure there is a market for my labor sufficient to make the investment a good one. Also, the maintenance costs would rise so much (fuel, lubricant, hearing protection, etc.) that I'd really have to make sure I could get enough to work to recupe those costs too.

So, invest in a bass that is sufficient to allow you to apply your labor and convert that labor and capital into cash. Go for the lowest capital expenditure that allows you to accomplish this.

If you're desirous of a more expensive new instrument, then it's not about investments.
And that's ok.

I don't play cheap basses. But I don't treat them like investments either.

 

[Gasman]

Am I the only one that doesn't care about resale value and don't look at my instruments as an investment? All I care about is how it plays and sounds. Besides, The miniscule amount of difference in profit you might gain between the two species of Fenders is negligible. Whichever one you enjoy playing more is the one that's worth more - to you.

Exactly.

No, you are quite normal. At least I think you are, for whatever that's worth. Every instrument I've ever had I've bought because I wanted it for playing. I have found that the used market gives the most bang for the buck, and while when I've bought used I have coincidentally let someone else take the financial hit, resale has never crossed my mind. I only care about getting a good deal for something I desire.

That said, I own several basses that I've bought new, but again, I bought them because I wanted to play them, not worried about the cash value upon resale.

 

[Stranger Danger]

The title pretty much says it all. I'm in the market for a P Bass and was wondering what your opinions were on which was the better investment.
From what I gather the sound quality and playability differences are debatable, so I'm mostly asking from a financial position. Assume the price difference isn't a problem.

None of them are investments. They are instruments. If you want to be able to flip it down the line and get your money back then buy used.

 

[Tugg]

Just bought a '95 MIM P bass. $299. I bought it because I enjoy modding. If it turns out anything like my '92 MIM J bass, I will have a super nice bass. not much resale though.

 

[Mosfed]

I don't think either will be a good investment.

They are making far too many of both for you to ever really make any money on a MIM or a MIA Fender.

So I would say : 1) buy used - great advice and 2) buy what you like and what feels good.

I love Fenders and have a couple of 70s ones that I will likely make some money off of. But it will be a long time.

 

[thmsjordan]

Whichever you choose, buy used. You'll likely be able to get all your initial cost back if you decide to sell.

Yes, True in my experience. I never once lost money on a used Feder that I re-sold.

 

[Jim Carr]

Take it from me, a serious investor for 32-years, and former Wall Street software engineer and music professor. I know I post this just about every time a bass is referred to as an investment, and that others have probably said it more succinctly, but unless you are buying something that is going to end up providing you with a long term income stream, a retirement income, a professional livelihood, or a very significant appreciation, you are not investing you are shopping.

Investments are things like an education, a small business, vocational training, life long mutual fund purchases in an IRA/403b/401k/etc., stocks, bonds, ETFs, market options and futures, commodities, farm land, rental housing, fixer upper housing, and maybe high end fine art/collectibles in quantity. If you are not able to buy enough of a given "investment," its potential return in not going to be significant, so that 1955 P-bass of mine that I paid $240 for in 1973 has appreciated a lot, but as an investment, its return is at most is a few thousand dollars—not significant unless I can repeat that trick several hundred times without significant additional loss or expense.

In other words, if you are not ending up with an income, a house, a job, or a some significant part of one of those, your purchase is not a good investment, and probably is a hobby or just consumption. If you can afford it and it enriches your life, great. Money and investing are a means to an end, not an end in themselves.

Buy which ever instrument fits your budget and helps you do your best making music. Enjoy that aspect of life to it's fullest without expecting your instrument's appreciation to be on your mind while you are playing the music you love.

 

[Gasman]

OK, I've had time to kill, so I'm going to prove that instruments are bad investments, even the vintage ones.

Currently on ebay there is a 1959 Fender P and they are asking $13,500. Let's assume they get it.

I don't know the original sticker price of a P in 1959, but for argument's sake let's say it was $300. Adjusted for inflation, that's just over $1600 in today's dollars. So your "profit" is around $12,000, right?

Now, take that same $300 dollars in 1959 and invest it in something that earned, say, an index fund or something that would have earned a conservative 8% over the same period of time (I'm using historical trends, not specifics here). Now, that $300 would be $22,000. Your opportunity cost, what Baird referred to, is $10,000, or nearly twice what your profit was from the Fender. That's what investments do. They (ideally) grow and make money over time. While a vintage instrument could technically be considered and investment, it's really only if you bought it 40 or 50 years ago. And even then, it's a pretty marginal one. If you bought that 59 P today, you'd be lucky to keep up with inflation. You'll never "make" money off it.

I'm no financial pro, so feel free to correct. But overall I think this is right.

Buy the instrument you want and can afford. Don't worry about financial loss- it's inevitable.

 

[Baird6869]

OK, I've had time to kill, so I'm going to prove that instruments are bad investments, even the vintage ones.

Currently on ebay there is a 1959 Fender P and they are asking $13,500. Let's assume they get it.

I don't know the original sticker price of a P in 1959, but for argument's sake let's say it was $300. Adjusted for inflation, that's just over $1600 in today's dollars. So your "profit" is around $12,000, right?

Now, take that same $300 dollars in 1959 and invest it in something that earned, say, an index fund or something that would have earned a conservative 8% over the same period of time (I'm using historical trends, not specifics here). Now, that $300 would be $22,000. Your opportunity cost, what Baird referred to, is $10,000, or nearly twice what your profit was from the Fender. That's what investments do. They (ideally) grow and make money over time. While a vintage instrument could technically be considered and investment, it's really only if you bought it 40 or 50 years ago. And even then, it's a pretty marginal one. If you bought that 59 P today, you'd be lucky to keep up with inflation. You'll never "make" money off it.

I'm no financial pro, so feel free to correct. But overall I think this is right.

Buy the instrument you want and can afford. Don't worry about financial loss- it's inevitable.

Totally agree with this.

You have to eat, buy clothes, drive to work, etc.... basically live your life... but every dollar invested today is obviously gonna be worth substantially more in 10/20/50 years.

Isn't it fun to overanalyze?

 

[Gasman]

Totally agree with this.

You have to eat, buy clothes, drive to work, etc.... basically live your life... but every dollar invested today is obviously gonna be worth substantially more in 10/20/50 years.

Isn't it fun to overanalyze?

Indeed it is. What was the OP's question again?

 

[Baird6869]

Indeed it is. What was the OP's question again?

I think something about Squiers and SX's being better than Sadowskys or somethin'.

 

[13lues]

What was the OP's question again?

I think it has been fairly well answered by a good number of people, while others were less helpful. Now it's just fun.
"A fool and his money are soon parted."

 

[Roy Vogt]

Thanks for the response. The main thing confusing me about which to get is that I see used MIA basses selling for around the $850 price point fairly consistently.
$1350-$850 = $500
While is see MIM basses selling for about $350
$580 -$350 =$230

If you look at it purely from statistics the MIA depreciates a little over 37% while the MIM depreciates 39%. It's basically a wash. I think you pays your money and you takes your choice. I'd just buy the bass I like and be done with it.

 

[Roy Vogt]

I think it has been fairly well answered by a good number of people, while others were less helpful. Now it's just fun.
"A fool and his money are soon parted."

Are you sure it's not, "A fool and his money are soon partying?"

 

[Jim Carr]

...I don't know the original sticker price of a P in 1959, but for argument's sake let's say it was $300. Adjusted for inflation, that's just over $1600 in today's dollars. So your "profit" is around $12,000, right?

Now, take that same $300 dollars in 1959 and invest it in something that earned, say, an index fund or something that would have earned a conservative 8% over the same period of time (I'm using historical trends, not specifics here). Now, that $300 would be $22,000. Your opportunity cost, what Baird referred to, is $10,000, or nearly twice what your profit was from the Fender. That's what investments do. They (ideally) grow and make money over time. While a vintage instrument could technically be considered and investment, it's really only if you bought it 40 or 50 years ago. And even then, it's a pretty marginal one. If you bought that 59 P today, you'd be lucky to keep up with inflation. You'll never "make" money off it.

I'm no financial pro, so feel free to correct. But overall I think this is right.

Buy the instrument you want and can afford. Don't worry about financial loss- it's inevitable.

8% is optimistic, but OK. The real issue is that you can't repeat the $300 "investment" in a '59 P-bass very often. However, you can buy an index fund that covers a big chunk of the US stock market as often as you wish. If you had spent say $5,000 a year for the last 30 years on buying an S&P 500 index and done nothing with it but add $5000 a year inflation adjusted, you would have over $1,005,002.00 now. See you in Maui!

Here is a toy: Invalid Link Removed

 

[Dragan]

The title pretty much says it all. I'm in the market for a P Bass and was wondering what your opinions were on which was the better investment.
From what I gather the sound quality and playability differences are debatable, so I'm mostly asking from a financial position. Assume the price difference isn't a problem.

Investment? For the future, like when you get retired? As for today currency, it is MIA.
If you want to play the bass, you can find darn good mexican Fenders there. I am fortunate to have MIM Precision which is a great bass just like the American made ones.

I love that bass!

 

[MattyX]

There is more than one definition of investment.... I'm just sayin'

e.g. I consider money spent on a family beach vacation an investment in my general well-being

If you have the money to buy either, then buy a bass makes you happiest!