By Michael Manashirov, COO of Qollateral
Published March 2026 | 6-Minute Read
Anyone familiar with Hermès probably already knows about its recent incredible rise in value, particularly for the much-loved Birkin bag. It has proven to be a solid alternative asset, outperforming the S&P 500 and even gold over the past several years. But how does a Birkin Bag investment compare to another luxury expense, like a car? Well, it is a completely different ball game altogether. One asset has a much higher likelihood of depreciation than the other, which we will break down in depth below.
What’s more, Birkin bags are status symbols, touted by celebrities and the influential alike, but the decision to buy one also comes down to a few other factors beyond one’s personal social standing. It also relates to asset performance. Appreciation vs. depreciation, overall liquidity, ownership costs, and more also matter.
Depreciation Reality: What Happens to Your Car
Cars depreciate faster than most assets out there.
According to Carfax, the value of most new vehicles drops by more than 10% within the first month of ownership. By the end of the first year, that number climbs to around 20%. Data from Kelley Blue Book shows the number is closer to 30%.
It doesn’t stop there, either. KBB also discovered that cars will typically depreciate another 8% – 12% each year after the initial first-year drop. Estimates vary by year 5 of ownership, depending on the source. Kelley Blue Book states that new cars usually lose around 55% of their original MSRP, while Carfax estimates the number to be much higher at 66%.
Luxury cars lose even more value over time. Data from automotive research firm iSeeCars found that the BMW 7 Series and Maserati Quattroporte depreciated by around 61.8% and 64.5%, respectively, over five years.
There are some exceptions to this trend. Rare cars like limited-edition Ferraris and vintage collector cars can certainly appreciate. However, they represent a very small fraction of the broader automotive market. For the average consumer, cars are depreciating assets that lose value each year.
The Case for Appreciation: Birkin Bag Value Over Time
The rules change when it comes to Birkin Bags.
For the sake of thoroughness, we also reviewed several studies to assess the performance of Brikin bags. While the numbers vary slightly, depending on the source, the upward trend was always the same.
There’s a well-known study published by Baghunter comparing Birkin bags to more popular forms of investment between 1980 and 2015. In a nutshell, the study concluded that Birkin bags appreciated at an average annual rate of 14.2%. To illustrate how important that was at the time, the study compared that number to the S&P 500, which had an average annual return rate of 8.65%. Gold performed even worse at -1.5%. Birkin bags did not decline during any year in Baghunter’s study period.
Let’s compare those numbers to another source. Sotheby’s numbers are more conservative, with an estimated 40-year compound annual growth rate of around 5% for the Hermès Birkin.
And then there’s Rebag’s 2025 Clair Report, which found that Birkin bags appreciated a whopping 92% in the pre-owned market over the past decade. Plus, the average value retention rate of Birkins is 138%, according to the same report, an increase of 38% from the previous year. The report attributes that growth, in part, to a new cap on the number of bags customers can buy each year to just two, which might seem like a lot to some, but not if you’re a client like Victoria Beckham, who is rumored to own over 100 Hermès Birkin bags.
As you can see, the exact appreciation rate depends on which source you follow and when it collects its data. What truly matters here is that all three sources found that Birkin bags have historically held their value better than cars. Still, not every bag trades hands for a massive premium. It all depends on factors like condition, color, size, leather type, rarity, and authenticity.
Is A Birkin Bag A Good Investment?
Yes, but it should not be viewed as a replacement for a diversified investment portfolio.
The brand successfully maintains demand by strictly controlling production and distribution. Obtaining a Birkin directly from a boutique is incredibly difficult and often requires a past purchasing relationship with Hermès or connections with other, trusted customers. What’s more, the pre-owned Birkin market is thriving. Handbags regularly fetch six figures at auction houses like Sotheby’s, luxury confinement firms, and even specialized online marketplaces, like The RealReal.
And then there is the data, which speaks for itself. As mentioned above, Rebag’s 2025 report found that Hermès’ value retention was 138%. That means that the brand’s bags are still consistently trading hands for well above retail.
Liquidity: Converting Assets into Cash
As with pre-owned value, Birkin bags outperform cars in liquidity. Selling a car requires inspections, title transfers, and dealer offers, which take time. Birkin bags, on the other hand, are relatively easier to sell. They’re lightweight and can be shipped and sold on several platforms, including auction houses and luxury resellers like Rebag and The RealReal.
Keep in mind that Birkins are still not as liquid as publicly traded stocks or ETFs. However, thanks to a very active secondary market, they’re still easier to resell than many luxury cars.
Storage and Maintenance: The Hidden Cost Gap
Cars carry many hidden costs, such as insurance, yearly registration fees, maintenance, repairs, taxes, fuel, and even parking. Parking in some major cities alone is a significant expense. On top of that, cars lose value.
Birkin handbags, on the other hand, don’t require much maintenance and have been shown to appreciate over time. Most owners already have some form of homeowner’s or renter’s insurance that can easily be extended to cover a valuable luxury bag. Plus, properly storing a Birkin bag requires little more than a dust bag to keep it in and a controlled environment. There is also the matter of professional cleaning or conditioning the leather, but those costs are still nominal compared to car maintenance.
Which Birkin Bag Is the Best Investment?
There is no way to guarantee that any specific bag will appreciate. However, some bags have demonstrated better resale value than others. Classic 25cm and 30cm sizes, for example, are top sellers. From there, colors like black, gold, and Étoupe appeal to both seasoned and novice collectors alike and have strong liquidity.
Togo and Clemence leathers are widely available and thus still popular among collectors, according to Sotheby’s deep dive on the Birkin, while more exotic skins like Niloticus and Porosus crocodile tend to command higher premiums. They are distinguished from other materials by symbols next to the Hermés logo, “••” for Niloticus and “^” for Porosus. Bags made from these materials are harder to resell, though, because the customer base is much smaller.
As with any other luxury asset, documentation matters. Collectors are usually more confident buying handbags that come with items that verify authenticity. That might include the original purchase receipt, boxes, and dust bags. As a result, they typically have stronger resale values.
Birkin Bag Value as Collateral Compared to a Car
Cars depreciate, while Hermès handbags usually go up in value. So, how do they compare when it comes to using them as collateral for a loan? As cars lose value, their borrowing power usually declines with it. The same cannot be said about the Birkin bag. A very strong, active pre-owned market gives way to higher collateral valuations. Examples in excellent, well-maintained condition can be worth much more than the original retail price.
A luxury asset-backed loan through Qollateral can be the perfect solution for Birkin handbag owners who need quick liquidity. All loans are based on the bag’s liquid wholesale value at the time of the appraisal, not the retail price.
Browse through our handbag loan page and collateral-backed lending page to learn more.
Real-World Comparison: A $100,000 Purchase
Consider two potential buyers. One invests $100,000 in a luxury car. CARFAX and Kelley Blue Book state that cars typically retain 40% to 45% of their value after the first five years. Based on that data, we can estimate the car would be worth between $40,000 and $45,000 during that same period.
The other buyer purchased a Birkin bag for the same price. According to data from Rebag’s 2025 report, which shows Hermès has an average value retention of 138%, the Birkin bag would be a better way to spend that same $100k. That, of course, is never guaranteed and is presented only as a hypothetical. However, data does in fact suggest that Birkin bags generally perform much better than cars.
Get A Loan Against A Birkin Bag
Owners who need to cash in on their assets don’t necessarily have to sell them. Instead, they can use them as security for a short-term loan, all while retaining ownership. The bonus here is that the owner doesn’t miss out on any potential appreciation during the loan, a value that would otherwise be lost if they sold.
The process is fairly simple at Qollateral:
- Request a no-obligation offer online
- Ship the bag to Qollateral’s HQ or bring it in for an in-person appraisal.
- Accept the loan offer and receive funding as soon as the same day via check, cash, or bank wire.
- The bag is stored in a monitored vault in the International Gem Tower and insured by the prestigious firm Lloyd’s of London.
Risks and Market Realities
No asset is 100% risk-free. Consumer tastes and even the condition of the asset itself change over time. Plus, while the Birkin has strong secondary market liquidity, it isn’t instant. It can take time to find the right buyer for any designer handbag.
Baghunter, Sotheby’s, and Rebag all use their own research timeframes and methods. As a result, appreciation estimates will most often vary. While the long-term trend has been positive, Birkin bags make the most sense as one piece of a larger investment strategy rather than the entire strategy itself.
The Bottom Line
The historical data paint a fairly clear picture. Hermès bags have generally retained their value far better than most cars. Deciding between the two means considering factors such as hidden costs like storage and fuel, as well as features like car make and model, production year, and handbag materials. No investment is ever guaranteed, but sources rank the Birkin at the top among pre-owned luxury assets.
Already own a Birkin? Contact the team here at Qollateral for a free, no-obligation appraisal to find out how your handbag can work for you.
- 100% Discreet
- 100% Safe
- 100% Secure
- 100% Risk-free
- 100% Insured
- 100% Satisfaction Guarantee
