Hey all,
We all know that pinball machines can be considered an investment. I was curious exactly what return my collection has brought (by the way, this is not of great importance to me, since pinball is a love/hobby, but I was curious since I’m a finance nerd in other aspects of life). What I mean by return (APY, annual percentage yield): what did I pay for a machine, how long ago was that, what’s the current value, and therefore what was the APY? How does that compare to other investments I could have made? All the machines are in good condition, 100% functional, players machines, except TSPP which is a superb condition HUO. And the results:
Funhouse
Purchase price: $1,200
Purchase date: March 2001
Time owned: 18.5 years
Estimated current value: $4,000
Return: 6.73% APY
The Addams Family
Purchase price: $4,500
Purchase date: December 2011
Time owned: 7.75 years
Estimated current value: $6,000
Return: 3.78% APY
Twilight Zone
Purchase price: $5,000
Purchase date: May 2012
Time owned: 7.33 years
Estimated current value: $6,500
Return: 3.645% APY
The Simpsons Pinball Party
Purchase price: $4,500
Purchase date: December 2014
Time owned: 4.75 years
Estimated current value: $5,300
Return: 3.51% APY
Average APY for the collection: 4.41%
My reaction... my emotions led me to believe the returns were going to be higher, but there it is. And I know I paid top dollar for most of them, so that affects the return of course. Finally, I suspect that if I factored in repair costs and parts, it would pretty much destroy my return. Boo hoo!
If you want to do something similar, find a future value calculator on the web (something like the link below). Num. of periods = the years you have owned the machine. Starting amount = the price you paid. Interest rate = fiddle with it until Future Value equals your estimated current value, and that is your APY. Leave Periodic Deposits at 0.