Think Chanel

Vintage Chanel handbags ooze quality, certainly the 90s and noughties are higher quality than those produced today, and the price is so much more affordable than buying new. Chanel has long been known as the name behind the world's most coveted style that has stood the test of time.

If Hermés is out of your reach, I recommend Chanel as the brand to consider. Like Hermés, Chanel has quotas so a customer can only buy one or two of a certain type of bag each year. Chanel does have price increases – sometimes two or three times a year, so a bag can go up 26 per cent year on year – and rather than buyers refusing to pay the higher price they seem to buy more.

A Chanel classic flap bag used to be about half the price of a Hermés Birkin or a Kelly but now it's almost the same price so buying a new Chanel bag doesn’t mean it can be sold for more. However, if a buyer holds on to it, the secondary market is following that price increase, not as strongly but it will keep going. Chanel is very steady. For example, if you bought a Chanel bag in 2005, you might have paid £3,000. That bag now retails for £8,000, so you might be able to sell it at auction or on the second-hand market for £4,000 or £5,000.

Caring for your handbag

There's a premium for bags that look completely brand new. Do use your bag but be exceptionally careful to keep it in great condition if you are looking to sell it on. For instance, tie a silk scarf around the handles to stop the oils from your skin changing the colour. Pen marks, inside and out, will depreciate the value of a bag and be careful with liquids and make up. Avoid taking your leather bag out in the rain!

Avoid scratches by keeping the bag in its cover and box, although be careful of the hardware. If you put your Chanel bag in its box, do not let its chain sit on the body of the bag as it will create indents that will not come out, and be careful of the corners. Do not put your handbag on the floor. In restaurants, place your bag on the table or a chair to help look after the bag, while still enjoying it.

Luxury brands have excellent aftercare services where you can have your bag restored. It’s worth noting that if a bag's been restored at Chanel or Hermés it won’t affect the price. If the bag has been restored elsewhere, it can affect the price as it isn’t original.

Birkin bait

When buying just for investment, it's only Hermés that can achieve a good return. Often if you can buy a Hermés bag, you'll immediately be able to resell it for more.

It used to be that if you wanted to buy a Hermés Birkin or a Kelly, you'd put your name on a waiting list and six months to a year later you would get the opportunity to buy it. This has changed and now you must have spent enough money in Hermés to receive such an invitation to purchase a handbag. Once you have bought enough items from scarves to homeware or small leather goods (about £30,000-£40,000) you might be invited to buy the Kelly or the Birkin. If you buy a Hermés Kelly for around £9,000 (depending on the size) you can often immediately resell it for £15,000 but to get that handbag you've already spent at least £30,000. It’s called Birkin bait, a fascinating marketing system.

Bonhams attracted some great prices at recent sales (February 28, 2024) with a pink Birkin selling for £25,000. The smaller Hermés bags are most popular. A few years ago, we had a brand-new mini Kelly bag in an auction that the owner had bought from Harrods. It retailed at around £5,500 and we sold it for £35,000.

I have sold many rare handbags but my claim to fame was being auctioneer when Jane Birkin’s Black Togo Birkin 35 fetched £119,000 in 2021, beating the £15,000-20,000 estimate by more than five times. I have been dining out on that record sale ever since!

The bag was in terrible condition. Jane Birkin had let her cat sleep in it, so there were bite marks on the handle and the corners were worn away. It had patches where stickers had been removed and she’d signed it in Tipp-Ex. The seller had stored the bag in a wardrobe for 10 years until her cleaner said, ‘do you want me to throw out that that old black bag?’

Live auction vibes

I always loved it when I knew everyone in the auction room and saw what they're bidding on, it makes for a special atmosphere. Now you have hundreds of people logged in and bidding online across the world, which is great, but I don't have that ‘in the room vibe’ when you have two people bidding live. That kind of dynamic is brilliant – watching their faces saying ‘that's my bag, stop putting your hand in air!’

Live sales are still wonderful but our buyers, more than ever, are moving towards a timed online method which is working well. Typically, they like the designer names; Chanel, Hermés, Louis Vuitton and then Dior, Gucci, Prada, Loewe, Bottega Veneta. There are lots of brands we will consider putting in a sale with different ages from the 90s to vintage Hermés clutch bags from the 60s and 70s.

Louis Vuitton is another steady brand. People buy them because they are wearable and can be sold with some return on their original purchase. Louis Vuitton’s art collaborations are popular and can come back into fashion and suddenly leap in price – but not all collaborations are a hit, so buyers must play that cleverly.

The collaboration with Takashi Murakami was sought after on the secondary market. Stephen Sprouse’s graffiti collection is another that attracts buyers while last year’s collaboration with Yayoi Kusama saw sky high prices on release and slower interest in the secondary market.

Don’t be afraid!

A first auction visit can feel intimidating but once you understand it, it’s just brilliant. It’s addictive and fun! The variety of bags available is incredible and that’s a huge pull, too.

Don't be afraid to come into the auction house – there is a team of specialists to talk to – ask questions, ask for pictures, ask for videos, ask for advice. There are so many online shops where you can buy great second-hand bags, but you won’t get that personal advice.

Upcoming auctions

Our next big live auction is in September with once-a-month online handbag and fashion sales that can be discovered on Bonhams website.

Insuring your handbag

Whether you are a long-term collector or new to buying handbags, rising values of rare or unique items highlight the importance of regular valuations.

Insurers recommend that you obtain a valuation at least every five years, preferably three in today’s market. But check your insurance schedule and policy wording for specific requirements.

Insurers will require any valuation to be for “insurance purposes” and usually for retail value. You should also consider how you would replace your handbag in the event of a loss. Would you want a new replacement with a modern equivalent (New Replacement Value) or would you prefer an antique replacement (Antique Replacement Value)?

Ensure the handbags are photographed, kept in good condition and your documentation is in a safe place to help in the event of a claim.

It’s a good idea to send a copy of your valuations to your broker, whether or not the insurer requires it.