The Chanel Flap Bag, considered the “gold standard” of handbags, isn’t only a fashion accessory. It’s a significant investment – one that offers returns similar to gold.

Because a pre-owned Chanel Flap Bag has considerable value, there’s potential for it to be used as collateral for an asset-based loan.

Similar returns to gold

Today, a Chanel Medium Classic Flap Bag will cost you roughly US$6,500/£5,550 (R120,000+).

Over the past 30 years, the bag’s retail price has grown year on year (YOY) by a staggering 21.2% – way above South African inflation.

According to South African luxury reseller Luxity, the selling price of a pre-owned Flap Bag has also grown by an inflation-beating 17.7% YOY.

Since 1990, gold has had returns in the five to 12% range, with returns of more than 20% a quarter of the time. But even gold – considered a safe-haven investment during global financial crises – has had years with negative returns.

Design and history of the bag

The Flap Bag is sometimes mistaken for the era-defining 2.55 bag that Gabrielle “Coco” Chanel designed in February 1955 (hence its name).

Fed up with having to carry a clutch, Chanel added a chain-link strap to create the 2.55 bag. The first-ever shoulder bag was born.

Over the years, the original 2.55 bag, with its signature chain strap and mademoiselle turnlock, has been reimagined in new colours and fabrics. One example is this small 2.55 handbag in aged calfskin and gold-tone metal.

It was only in 1983 that Karl Lagerfeld, then the creative director of Chanel, designed the Flap Bag. It had the iconic double CC lock instead of the rectangular turnlock of the 2.55 bag.

Today, the bag is available in four sizes and myriad designs and fabrics. They all have the signature diamond-quilted texture, inspired by Coco Chanel’s love of all things equestrian, and the interwoven CC lock.

The black leather model remains the signature design. However, a limited edition with embellishments or special leather may sell for considerably more.

Buying a Chanel Flap Bag

Bad news for anyone wanting to buy a new bag. You’ll have to travel overseas. There are no Chanel boutiques in South Africa.

Reselling a Chanel Flap Bag

If you own a Chanel Flap Bag, you have a valuable asset. These handbags hardly depreciate after purchase, and pre-owned bags can be sold almost at the owner’s whim.

It’s possible to resell pre-owned luxury handbags online or via a luxury reseller. In fact, the pre-loved luxury fashion industry is booming.

A pre-owned Chanel Flap Bag in as-new condition can sell for as much as 85% of its original value. If it’s a special skin or limited edition, it could sell for more than its original value.

Selling online yourself is convenient and you set the price. You’ll have to be able to prove the handbag’s authenticity though.

Also, scams are common, so be cautious. Never hand over a valuable asset without receiving payment in full. Proof of payment on a bank transfer isn’t necessarily enough. If in doubt, insist on cash.

Using a designer bag to secure a loan

Chanel never goes out of fashion, so you may want to keep yours.

Instead of selling, you can use this type of luxury handbag as collateral for a short-term loan. The loan amount is based on the market value of the bag.

Some advantages of asset-based loans include:

• speed – funds are usually transferred within 24 hours
• discretion – information isn’t shared with credit bureaus or other third parties
• straightforward – the application process can be done online
• NCR compliant
• no hidden costs or penalties.

Getting a loan against a luxury handbag in South Africa

If you’re investigating getting cash for a designer bag, we may be in a position to make a loan offer. At lamna, we offer fast, discreet loans against the value of a wide range of assets, from luxury handbags and jewellery to artwork and vehicles.

For more information, contact us on 086 111 2866 or simply complete and submit our online application form.