How much does a DAC do the more expensive it is?

So many here seem to be fixated on cost rather than value when it comes to DACs.  Value can be difficult to determine when it comes to DACs since the technology is not as mature as vinyl, tape, speakers or amplification.  I don’t see vintage 30 year old DACs going for big money.  Changes in digital technology appear to be leveling off, but who knows until we look back 10 years from now.  Still, many DACs have more value than others.  It is not just about cost.  Performance, reliability, adaptability and pedigree (well known manufacturers) affect market value both as a new and as a used unit.

Someone may purchase an $1100 DAC and be pleased as punch with the sound.  After comparing some $600 DACs and $2500 DACs this purchase seems to be the best all around choice without breaking the bank.  In 5-10 years this DAC might resale for $50-$100.  Another person found his ideal DAC and paid $11,000.  This DAC, from a well known brand- and that certainly adds a little to the cost has a beautiful sound with a large airy soundstage befitting the rest of his high end stereo system.  In 5-10 years this DAC will likely fetch $5000 on the used market, baring any new significant technological breakthroughs.  Remember, high end turntables were selling for very reasonable prices on the used market from the late 1990s to about 2010.  Wish I had jumped on my dream turntable back then.  Point is that both DACs have a cost of ownership and that is the thing to consider.  So now, the person who snatches up the $11,000 DAC used will likely enjoy his purchase immensely with potentially a lower cost of ownership than the person who bought the $1100 DAC new.   And if that is the case is there really any debate needed about the sound quality expensive DACs vs inexpensive DACs?  (Other than someone must pony up the price for new gear.)

$11,000 DAC used will likely enjoy his purchase immensely with potentially a lower cost of ownership than the person who bought the $1100 DAC new.

Tony, accepting your hypothetical numbers the person who bought the $1100 dac loses $1000 in value while the person who bought the $10,000 dac loses $5000 over the same time. That does not equate with a lower cost of ownership for the more expensive piece in my book.

This whole “cost equals sound quality“ argument in hi-fi is very suspect. Here are a couple of reasons why. 

A.) In many, if not all hi-fi components, the case equals more than half the cost of the component. Thus, you are paying for looks not for sound necessarily. I believe this is typified by the value proposition. Many have acknowledged for Schitt t audio products. Decent quality in a cheap case sold at a reasonable price. PS – I don’t own any of that particular companys products. 

B) it is well known in marketing that price automatically equates with value in the minds of the majority of consumers.

C) the inability to totally characterize sound quality through measurement plays into the hands of the marketers in B. 
 

and OK I will admit that there may be some boutique brands out there, using exceptionally high component quality who have developed intellectual properties that make their products worth extravagant prices. I don’t know. What I am saying, however, is that the opportunity exist for lots of deception through effective, marketing and appearance in shiny boxes and if there are not a lot of people taking advantage of that, then I guess we don’t live in a capitalist society.

You missed my point. The person who buys the $11,000 DAC used enjoys a lower cost of ownership vs the person who bought the $1100 DAC new.

@bruce19 

He may have been describing the lower cost of ownership due to the purchaser NOT swapping in and out of gear. In other words, you don’t lose money if you don’t sell it. 

I wish I had never heard better dacs. I’ve spent a ton on the chase ever higher up the price and performance scale. If you haven’t heard better then good for you but once you have then discussions like these you will find humorous. Peace.