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Bike Depreciation

Discussion in 'Bike Reviews, Questions and Suggestions' at netrider.net.au started by seanek, Sep 19, 2009.

  1. Hi Everybody,

    I'm new to this forum, and road bikes in general. I have been thinking about getting a bike for a while now (used to ride trail bikes a bit when I was younger), I first thought about getting one after looking at the petrol pump while filling my behemoth car, then glancing down at the gaping hole left over in my wallet. :shock:



    But I found some figures and crunched some numbers, It works out that I would only just break even if I was to buy a bike purely to save on gas. Then I had a go on a friends bike, and have decided I want to give it a shot regardless.

    So here is my question, If I was to buy an older (late 90's, early 00's) 250cc beginners bike (something like a ninja or virago, not sure if I want to go cruiser or sports style yet) for, say, around $3000-$3500, what would I be looking at selling it for a year later? (assuming I don't wreck it and drive around 3,500 kilometers in that time)

    Let me put it this way, I can afford one, but only if the money saved in petrol (a few hundred $$) covers a majority of how much the bike depreciates in that time (not taking into account gear, insurance, etc.)


    Thanks,
    Sean
     
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  2. My guess is that you as a potential buyer of one these bikes would not be too concerned as to whether it is 10 or 11 years old, or whether it has 42,000 or 45,000 kms (as an example), as long as you think the price is decent and the condition of the bike is good and it is well maintained. Right?

    So, therefore I dont think it would be any different after you have had it for 12 months, as long as you have kept it in the same condition, and as long as what you have paid for it and want to sell it for is reasonable.

    But please, dont get a bike because you think it will save you money...get it because its FUN!!!
    :grin:
     
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  3. If you are looking to save money then a scooter is the way to go.

    Bikes are cheaper to run than cars but that's not why we have 'em.

    that said, as above, if you buy cheap and look after it you'll
    probably get back what you paid for it.

    There's also the little issue of registration and insurance for two vehicles.
     
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  4. :WStupid:

    Used 250s, or now learner bikes in general, will usually hold their value pretty well, because there is always more learners out there looking to buy when you come to sell. If you buy new (which you're not, so good choice) expect to lose a bit. Unfortunately this is becoming less true with the introduction of some more desirable new learner bikes like the Ninja and larger capacity LAMS models.

    In regards crashing it - again most learner bikes have been on their sides at least once at some point in their lives. As long as the damage wasn't really severe and the repairs have been done properly it shouldn't be a huge issue, either when you are looking at one to buy or when someone is looking at yours to buy from you. Anyone looking for a budget (under $5k, or more for CBRRRRRRs etc) used 250 that has never been stacked is not being realistic and is in for a long search.


    With all that said, buy one you like and will enjoy, because you'll forget about the money soon enough!
    :biker:
     
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  5. Thanks for the all the help and fast responses!

    I thought that might have been the case, I just wanted to make sure before delving deeper. I'm not going to buy one because it is cheaper than a car, that was originally why I started thinking about it, but then I had a go of my friends bike, and discovered how ridiculously good fun it was. :p

    I only wanted to know if they depreciate because while I am willing to pay for rego, insurance, etc. I do not have the cash to lose too much money on the bike itself.

    Now it's just the herculean task of deciding between a cruiser style, or sports style. I guess I'll have to go to a lot of bike stores and sit on a lot of bikes. :)


    Thanks Again for all the help,
    Sean
     
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  6. IMO good quality and desirable learner bikes are only going to increase in value over the next few years with the introduction of the new learner scheme in NSW. There will be way more people on restrictions (probably more than double), so demand will be high.
     
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  7. 's a good point, had forgotten that the poor buggers are stuck on restrictions for 3 years now...
     
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  8. That's exactly right. Although the cost saving factor is a good excuse to be used when trying to justify the purchase of a bike to someone that just doesn't get how much fun there is to be had. :D
     
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  9. I think you're wrong.
     
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  10. Well there's a useful contribution to the discussion. Care to elaborate?
     
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  11. Just be aware that the cost of servicing some bikes runs pretty high, especially older bikes that have had a lot of wear, from a financial point of view you will spend more on servicing your bike than you would save on petrol. If you do the servicing yourself then it's a lot cheaper.
     
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  12. IMO Bikes are generally more expensive to run per km than many small cars, they are often barely more fuel efficient and generally need consumables (tyres, chains/sprockets, servicing etc) more frequently than small cars....this is without also considering the cost of gear.

    I don't think cost savings should really be the reason (at least sole reason) for riding a bike :)

    Lams/learner bikes tend to hold their value better than everything else, demand is greatest, as is turnover.
     
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  13. Some bikes can be run cheaper than a car. Depends on how you ride it and what you use it for. I started of riding due to the excuse that it was cheaper than a car. Now I ride because it's the cheapest way to make me feel happy.

    My advice, sure do you're sums but over analysing it could ruin the best element.. the fun.
     
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  14. don't buy a cruiser.
    thank me later
    cheers
     
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  15. i don't think he is
     
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  16. Absolutely
     
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  17. It all comes down to the type of car you are comparing it to.

    If you buy shitter cars it might be cheaper.

    However if you buy more expensive cars, you will find the depreciation hit on those are equivalent in value to a new Italian bike every year :shock:

    And the expensive car can't lane split. How much would you be willing to pay to have a 'lane splitting' option on your car? $10k? $20k?
     
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  18. How is lane splitting a running cost?, you can lane split in a car.....it is just as illegal as doing it on a bike too :), Although it is not likely to be ignored as often by police and the public as bikes are :LOL:

    I was suggesting a "many small cars" (yaris, echo, fiesta, getz, barina etc etc). I assume that people who care about fuel economy, depreciation and running costs (to the point of looking at motorbikes for transportation/commuting) are probably not comparing them to large family cars (falcons/commodores/aurions) or expensive euro barges (that depreciate at 20+k per year).

    Although the numbers are larger, depreciation on a bikes vs cars is probably not all that much different in percentage terms.
     
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  19. Like some others have said, running costs for a 250 will be about the same as that of a small car. Back when I had a Corolla and VTR250, running costs were about the same. The bike drank a little under half the petrol but made up for it with consumables / servicing costs.

    Once you get on a bike and start cruising through parked/waiting traffic you'll love that aspect of it on a commute. Just make sure you don't look to do it when you get back in your car! I thought about doing it once.

    Getting a used bike that has seen most of it's depreciation will see you get about the same or possibly more than what you pay for it. I say more because new bike prices keep going up and that tends to support the used market price.

    Get what you like. It may not be a 250 cruiser because a number of them have very little go and that would annoy quite quickly despite what you might think now. From what I recall, the Kawasaki Eliminator has about the most go out of the 250 cruisers. Viragos have nothing. Personally, I'd sooner get a CBR125R before I'd get a Virago. You may find yourself happy on a cruiser though. I've never ridden one but I don't think they're for me.

    A lot of people say that a GPX is a good starting bike and it looks to be about the best value used 250 going around at the moment. They're superseded by the Ninja 250R but aren't a great deal different except for the looks/plastics. Before my bills ballooned out of the stratosphere (litigating sucks - you make a heavy loss trying to get back what's rightfully yours), I was going to replace my written off bike with a good 3 or 4 year old GPX for a cost of around $4k (possibly a bit less). That age bike seems to have taken about all the depreciation it's going to take.

    Chances are that you'll look to 'upgrade' as soon as you can. However, if you can't then make sure you get something you could be happy on for longer than the LAMS bike restriction period (it may be 3 years for you in NSW in which case I'd also consider a GS500 in your shoes).

    Do your research / searches on Netrider (it gets asked a lot) and feel free to ask questions of everyone (including here) to arm yourself with as much useful info as possible. It'll make your decision easy in the end. Happy searching. :)
     
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  20. Okay, I think you're wrong.

    I know more than you.
     
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