How is the value of a bike determined?

[Bicky]

Hi, I tried searching and couldn't find anything. So if I were to buy a bike privately and how does the value of the bike get determined? Can the seller make a bill or something or is it like cars the value is determined by a book or something?

[haisam10]

Hi, I tried searching and couldn't find anything. So if I were to buy a bike privately and how does the value of the bike get determined? Can the seller make a bill or something or is it like cars the value is determined by a book or something?

U mean for registration and taxes? U would fill out the last page of the UVIP, which is the bill of sale, and u would pay taxes on the amount u put there. They can charge u based on the greater of ur sale price or wholesale value based on the Canadian red book amount, but this wasn't the case when I went. I don't think there is a list for motorcycles as extensive as there is for cars. So they just take ur word for it

[bear22099]

U mean for registration and taxes? U would fill out the last page of the UVIP, which is the bill of sale, and u would pay taxes on the amount u put there. They can charge u based on the greater of ur sale price or wholesale value based on the Canadian red book amount, but this wasn't the case when I went. I don't think there is a list for motorcycles as extensive as there is for cars. So they just take ur word for it

Bikes do not get charged like other vehicles. There is no Red Book used for motorcycles. You pay the taxes on the declared price.

[SpdDmn268]

Also, both the buyer and seller must state the same sale price. You sign forms declaring your sale value when you register your bike at the DMV; the seller may get a letter from the DMV asking what price they sold for... they've gotta match!

Remember to provide your insurance company with your TRUE bill of sale, otherwise they'll pay out exactly what you told them it was worth in the event of a total loss!

[yee_boys69]

they dont have book values at the ministry. you can say you paid a dollar. you and the seller will get a letter from the ministry asking you how much you paid for the bike. just throw it out, and good to go. the only way you will have problems if both people send the paper back with different numbers.

[crow_milo]

Bikes do depreciate differently then vehicles. The bikes price is determined by the condition of the bike. This does not mean if a bike new is 5k and the guy keeps it really nice, so now its worth more. Bikes will depreciate.

When it comes to the MTO, the red book still applies. If you buy a bike worth 6k and you bring a bill of sale from the seller showing you bought the bike for 1k, they will ask for a dealer to appraise the bike in order for them to accept that value.

[rukus]

Remember to provide your insurance company with your TRUE bill of sale, otherwise they'll pay out exactly what you told them it was worth in the event of a total loss!

actually, that is a very common misconception.
they pay the value to replace, not reimburse for what you originally paid.

When it comes to the MTO, the red book still applies. If you buy a bike worth 6k and you bring a bill of sale from the seller showing you bought the bike for 1k, they will ask for a dealer to appraise the bike in order for them to accept that value.

not accurate either. you pay taxes on what you paid. the ministry does not send vehicles for appraisal. some old bikes the ins. co will reuqest an appraisal to be done to determine the value, as that is relatve.

[imnothng]

Also, both the buyer and seller must state the same sale price. You sign forms declaring your sale value when you register your bike at the DMV; the seller may get a letter from the DMV asking what price they sold for... they've gotta match!

Remember to provide your insurance company with your TRUE bill of sale, otherwise they'll pay out exactly what you told them it was worth in the event of a total loss!

As someone already said, just throw the paper out. I have done that twice and no issues have arisen.

Can you please direct me to where you recieved that insurance information? I have NEVER heard of this and quite frankly I think it is a very idiotic thing to believe.
Really, so if my good friend does a bunch of work to my house and in payment I give him my bike. I'm going to write a bill of sale for 1$ based on what you believe, that is all his insurance company would pay him in the event of a write off???

When it comes to the MTO, the red book still applies. If you buy a bike worth 6k and you bring a bill of sale from the seller showing you bought the bike for 1k, they will ask for a dealer to appraise the bike in order for them to accept that value.

I have bought two things worth 4000$ and "payed" 100$ for both. Nothing was ever said at the time of transfer.

I have no experience with bikes, but when I bought a '76 truck, I had to get it appraised. The appraiser explained to me that it is for the times that someone buys an old vehicle worth 30K or even 100k but says they paid 100$. I told him I paid 100$ and that's what he wrote, because it was obviously not worth much. The g'man has to get paid right, lol.

[frekeyguy]

Bikes don't have a book value.

Legal: Declare it for how much ever you are paying for it!

[Nixel]

Bikes don't have a book value.

Legal: Declare it for how much ever you are paying for it!

But I don't want to pay $400 in tax I'd rather pay $200.

[rukus]

and i'd rather pay 0, but the mto's not that supid

[getfunky]

OP wants to know if privately sold bikes are priced reasonable or not. So in that case, wouldn't something like this work?

http://www.bluebooktrader.com/values_retail.php

[Nixel]

and i'd rather pay 0, but the mto's not that supid

They are. I paid $130 in tax versus $400. They have no basis for the value of a motorcycle, especially when it's 4 or more years old. The guy didn't bat an eyelash when I told him I paid $1000.