Bike depreciation | GTAMotorcycle.com

Bike depreciation

bigpoppa

bigpoppa

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You know how they say the minute you drive the car off the lot it loses like 20% of its value in depreciation? anyone good with numbers have any idea how it works for bikes?

I was just reading the stupidly overpriced thread and was curious how it worked for motorcycles...

I read around the net that 20% first year, then 10% for every year after that depreciates off the bike

This seems reasonable to me
 
bigpoppa said:
You know how they say the minute you drive the car off the lot it loses like 20% of its value in depreciation? anyone good with numbers have any idea how it works for bikes?

I was just reading the stupidly overpriced thread and was curious how it worked for motorcycles...

I read around the net that 20% first year, then 10% for every year after that depreciates off the bike

This seems reasonable to me
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If you believe a lot of the Kijiji pricing, the sellers are factoring the cost of their loans/financing into the price.. hence why Kijiji pricing in Ontario is skewered in my opinion. You can save some decent $$$ by buying a barely used motorcycle out of province. They are priced way cheaper and often have balance of factory warranties left. Ofcourse it depends on the motorcycle you are buying too.
 
kiwi said:
If you believe a lot of the Kijiji pricing, the sellers are factoring the cost of their loans/financing into the price.. hence why Kijiji pricing in Ontario is skewered in my opinion. You can save some decent $$$ by buying a barely used motorcycle out of province. They are priced way cheaper and often have balance of factory warranties left. Ofcourse it depends on the motorcycle you are buying too.
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so to get possession you would have to go to other province and ride it home i guess? Im sure there's some paperwork involved in changing the title to a different province?
 
You also have to worry about the classification system.

I believe that there are some crashed bikes that you can sell in Quebec, that you can't restore and ride in Ontario.
 
Kijiji pricing for bikes that are from the last few years are ridiculous. It seems like most of them are within a few hundred bucks of msrp. People trying to recoup their entire investment (freight, taxes, etc). At that point its better to just buy a new bike.

Why I buy bikes that are >5 years old. By then its on its second owner at least, and has depreciated properly.

A couple years ago I wouldce said buy a bike in the states but thats out of the question now.
 
Depends on the bike. Got a very good deal on a V-Strom end of season and traded it in 38,000 kms later for not much less. My current bike is not as popular & has 64,000 kms. I'll be keeping it till it drops.
 
Im trying to come up with an equation for the price of a used bike, it wont be 100% accurate but im trying to get as close as possible


the 20% depreciation on first year, and 10% for every year after that seems to work reasonably...


now im trying to figure out the Kms....per 1000 km how much should the price be lowered? (should have been a statistician or actuary)


Also i guess what they say must be true about those beginner 300cc bikes(that people outgrow them quick after 1 or 2 seasons), because a lot of people selling them on Kijiji and for good prices too(3-4k for 2013-15 bikes)
 
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If you know the exact bike you want make a list of the prices on Kijiji and Auto Trader.
Take the average and that's a starting point. There are plenty of times bikes
are posted for less than what they're worth by individuals looking for a quick sale.
On the other hand there are quite a few that are overpriced (individuals that don't understand
market value vs "what I paid for it and think I should get that back, or very closer to it".


But you have to go see the bike and get service records and those kinds of details.
The condition of the bike and how well taken care of is equally important as price (you can pay below market for a bike
that's not running very well or will need allot of maintenance to fix issues).
 
Just be cognizant of value holding outliers like the 400,000km Vee Stroms.
 
bigpoppa said:
so to get possession you would have to go to other province and ride it home i guess? Im sure there's some paperwork involved in changing the title to a different province?
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Correct. I was looking at QC at one point but while hunting kijiji I accidentally found a bike in Windsor. The one in Nova Scotia!!! Because it came from a proper dealership and shipping was only $400 crated to my door it was a worthwhile purchased. Paperwork was minimal because dealership took care of it and I transfered the ownership here in Ontario along with getting a safety done. Saved about $1300-$1500 on similar motorcycles in Ontario.
 
The cost of insurance for potential purchasers skews your formula. As supersport owners have found to their detriment and beginner bike owners rely upon.
 
kiwi said:
Correct. I was looking at QC at one point but while hunting kijiji I accidentally found a bike in Windsor. The one in Nova Scotia!!! Because it came from a proper dealership and shipping was only $400 crated to my door it was a worthwhile purchased. Paperwork was minimal because dealership took care of it and I transfered the ownership here in Ontario along with getting a safety done. Saved about $1300-$1500 on similar motorcycles in Ontario.
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wait so the bike was in windsor and the dealership shipped it for 400$?
 
There is no way to accurately figure this out without someone taking a ton of data over the course of a year or two.

Sure, some of you might disagree with Kijiji pricing but if the bikes get sold (and I know they do), then that means the price is right.

Just recognize that the vast majority of vehicles will depreciate. There are very rare examples where a vehicle will appreciate in value.
 
Baggsy said:
You also have to worry about the classification system.

I believe that there are some crashed bikes that you can sell in Quebec, that you can't restore and ride in Ontario.
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Be very, very careful buying a used bike from La Belle Province. I've heard several horror stories about insurance write-offs resurfacing and being sold to unsuspecting people....
 
bigpoppa said:
Im trying to come up with an equation for the price of a used bike, it wont be 100% accurate but im trying to get as close as possible

the 20% depreciation on first year, and 10% for every year after that seems to work reasonably...
now im trying to figure out the Kms....per 1000 km how much should the price be lowered? (should have been a statistician or actuary)
Click to expand...

So where does this leave the value of my 38 year old KZ650 with 116,000 kms?

She's not for sale. Have had her a long time, and she's priceless to me. ;)

 
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catzo said:
Kijiji pricing for bikes that are from the last few years are ridiculous. It seems like most of them are within a few hundred bucks of msrp. People trying to recoup their entire investment (freight, taxes, etc). At that point its better to just buy a new bike.
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100% agree. It's pretty hard to justify used when these guys are trying to sell a 5 year old DRZ400SM for $1000 off MSRP of a 2016. But apparently people are buying them, because a handful of them come and go off of Kijiij every week.

As someone buying their first bike in about 2 weeks, it makes no sense for me money wise to buy used, unless I want to go 10+ years old.
 
48Connor said:
100% agree. It's pretty hard to justify used when these guys are trying to sell a 5 year old DRZ400SM for $1000 off MSRP of a 2016. But apparently people are buying them, because a handful of them come and go off of Kijiij every week.

As someone buying their first bike in about 2 weeks, it makes no sense for me money wise to buy used, unless I want to go 10+ years old.
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Err...what?

I bought a 2008 GSX-R750 with 6000km for $7500 in 2013. A brand new GSXR750 would've been double. Used sales also much cheaper tax (or .13 sometimes lol)
 
油井緋色;2404296 said:
There is no way to accurately figure this out
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Youd definitely have to get prices from a whole year because bike prices are seasonal.
And youd have to focus on one region.
The main problem is youll never know what theyre actually selling for, just what theyre listed. Still, if you put in the price listed for, the years as 1 variable, kms as another, condition as a variable on a scale of like 1-5, maybe if its been dropped or not as a dummy variable, 0 or 1, and you put all that info from a few hundred ads around the year into GRETL you could get some kind of equation. Would only take a few minutes a week, but youd have to wait a whole year to get a good sample size.

But ya, no way to get a real accurate equation because you cant get all the data
 
48Connor said:
100% agree. It's pretty hard to justify used when these guys are trying to sell a 5 year old DRZ400SM for $1000 off MSRP of a 2016. But apparently people are buying them, because a handful of them come and go off of Kijiij every week.

As someone buying their first bike in about 2 weeks, it makes no sense for me money wise to buy used, unless I want to go 10+ years old.
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Not sure what Kijiji you're looking at. Kijiji sends me ads for 400SM's daily. Most of them are in the $4-5k range, a new one is $7700 plus tax.

It makes a lot of sense to buy used, especially for a first bike that you're likely to at the very least tip over a few times.
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