The cost of owning a $5k projector - AVS Forum | Home Theater Discussions And Reviews
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post #1 of 8 Old 01-16-2014, 07:11 PM - Thread Starter
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Let's assume that you buy a $5 k projector and keep it for five years:
+ $5,000 initial cost
+ $300 lamp replacement (assume 1 lamp over 5 years)
- $700 residual value after 5 years
Total amount spent is $4,600 or abour $77 per month.

Let's say you keep it 2-1/2 years, replace it with another $5k projector and sell it after another 2-1/2 years:
+$5,000 initial cost
-$2,500 resale (assume 50% depreciation in 2-1/2 years)
+$5000 Buy replacement
-$2,500 resale of second projector (again assume 50% depreciation in 2-1/2 years)
Total amount is $5,000 over five years or about $84 per month

If these two scenarios are correct, then the actual cost of owning a new $5k projector every 2-1/2 years is only $7 more per month (that is $84-$77, or $420 over 5 years). That is less than the price of a single ticket at a movie theater per month.

I have been a buy-and-hold guy for many years, but it looks like the price difference is such that I should consider replacing projectors more often.

What has been your experience?
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post #2 of 8 Old 01-16-2014, 07:25 PM
 
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If you buy another projector in the 2 1/2 year. Your total investment is $7500, not $5000
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post #3 of 8 Old 01-16-2014, 07:36 PM - Thread Starter
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Quote:
Originally Posted by Linh27 View Post

If you buy another projector in the 2 1/2 year. Your total investment is $7500, not $5000
I am looking at a full 5 year cycle. You buy one projector, keep it for five years and then sell it versus you buy two projectors over the five year period. At the end of the five year period the cycle is complete: all projectors sold.
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post #4 of 8 Old 01-16-2014, 07:37 PM
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Quote:
Originally Posted by Linh27 View Post

If you buy another projector in the 2 1/2 year. Your total investment is $7500, not $5000

His math is correct. Yes it is $7,500, but after selling the second projector, you have spent $5,000.
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post #5 of 8 Old 01-16-2014, 07:50 PM
 
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I get it now. $2.73 a day is not bad.
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post #6 of 8 Old 01-16-2014, 08:17 PM
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The first projector was always $5000. Each follow on projector is ~$2500. I would look at it this way. For the first 2.5 years the cost is $166/month. After that the monthly cost is 1/2 that. However, at any time you break the cycle the model breaks. So in effect, i you wish do this you need to firmly budget and execute on it otherwise the answer will be somewhere between 166 and 83 per month.

Here is the rub, you need to start budgeting early so first 2.5 years is really 166+83 effective and then 83 from then on out. Then if you get out of the game and sell you get $2500 back at the end.

In short, upgrading more often is effective if you plan on doing it for a very long time.

I must be guilty because people say I am guilty because they chose to call me guilty because they refuse to see the truth. Much easier to be part of the mob..
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post #7 of 8 Old 01-16-2014, 08:46 PM
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Quote:
Originally Posted by Nicoff View Post

Let's assume that you buy a $5 k projector and keep it for five years:
+ $5,000 initial cost
+ $300 lamp replacement (assume 1 lamp over 5 years)
- $700 residual value after 5 years
Total amount spent is $4,600 or abour $77 per month.

Let's say you keep it 2-1/2 years, replace it with another $5k projector and sell it after another 2-1/2 years:
+$5,000 initial cost
-$2,500 resale (assume 50% depreciation in 2-1/2 years)
+$5000 Buy replacement
-$2,500 resale of second projector (again assume 50% depreciation in 2-1/2 years)
Total amount is $5,000 over five years or about $84 per month

If these two scenarios are correct, then the actual cost of owning a new $5k projector every 2-1/2 years is only $7 more per month (that is $84-$77, or $420 over 5 years). That is less than the price of a single ticket at a movie theater per month.

I have been a buy-and-hold guy for many years, but it looks like the price difference is such that I should consider replacing projectors more often.

What has been your experience?

I don't think you will get $2500 for that used projector - my guess, you'd be lucky to get $1000-$1500.
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post #8 of 8 Old 01-16-2014, 09:02 PM
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Quote:
Originally Posted by rak306 View Post

I don't think you will get $2500 for that used projector - my guess, you'd be lucky to get $1000-$1500.

+1

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