The point of gift giving is to display you care. Intention is everything. Whether handmade, second hand, or new, the point is you took the time and attention to select the gift and give it.

Someone mentioned above their 7yr old not tolerating anything used. I wonder what they do about it; let this child dictate this? Eye brow raising.

Instead I think you have a wonderful opportunity to teach an excellent lesson to your children about the true value of things not to mention some ettiquette.