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Is it me or are bikes cheaper than 12 months ago?

Discussion in 'General Motorcycling Discussion' started by Camoridz, Apr 2, 2009.

  1. Hi all,

    Not been around for some time but am enjoying being back in the discussion forums of netrider again.

    I used to keep a regular eye on the typical sites to see what was for sale (2nd hand bike wise), did it for about 18 months. Stopped that about 12 months ago when i bought a zx9r, now just started lookin again (out of interest).

    Now, is it me or are 2nd hand bikes cheaper than 12 months ago? Sign of economic times? Of course the bikes are 12 months older, but the overall trend seems to be cheaper bikes....

  2. All the bikes that you were looking at 12 months ago are now 1 year older so I supose they would be cheaper. LOL!
    But seriously I assume that people may be a little desparate for money with this recession we are currently experiancing.
  3. That would make sense.

    Referring to the 2nd hand market.

    Seeing as motorcycles for MOST riders aren't the main form of transport I'd expect the aggregate amount spent on motorcycles to fall by a greater proportion than incomes have lately - which is relevant in the economic climate, along with possibly more people selling off bikes and increasing the supply.

    You may be surprised, it is probable that many of the lower priced and efficient motorcycles are going up in price as people demand more of them for transport as they ditch cars - a few articles on that in the paper.

    I reckon the (purely) sports bike section may lose value the fastest as they are less prominent as a form of transport - rather solely for enjoyment.

    I too keep an eye on VTR250 prices... they seem to be clearing off so quickly... even at ridiculous prices - people obviously want the bikes that are cheaper to run.

    In fact I did a uni stat assignment on vtr250 prices last year... when I have time I'll check out if it has changed 'statistically' -ps: I realise how much people hate that word around here :p
  4. I think you will find it's a result of the well perfoming AUD during 2008.

    We saw dirt cheap prices on bikes. Much cheaper than 07 and the years prior. This has driven down the prices of the used market as people selling 06-07 Gixers were asking the same money as a new 08 Gixer.

    However the 09 models carry the 60 cent exchange rate and new bikes are considerably more expensive.

    So the used market will breathe a sigh of relief.
  5. At the moment, It does seem to be a bad time to sell, especially going into winter, but if you are patient and buying, you can find yourself a steal! (Btw, will put up a new bike thread sometime....)
  6. I think a lot of people are trimming their financial fat at the moment as well. Unnecesary toys are going down in price.

    And like others have said the AUD was strong last year. I'll be interested to see how the new financial year shapes up for bikes. With the latest batch of bikes being bought with the dollar at it's peso-like levels, surely dealer prices will go up by a fair bit, and with it, the second hand bikes?

  7. I think the exchange rate excuse for prices is plain bs in more than one way. From what I understand, the exchange rate used between trading countries is usually set well in advance based on long term forecasts and past trends and doesn't fluctuate as much as the exchange rates we see reported on the news on a daily basis.

    When changed over to AU$, all bikes cost more here than they do overseas and a lot more in some cases. Last year when the AU$ was up against the US$ and Yen, a Ninja 250R in the US was about US$3,500 ride away. How much were they here for the same machine? That's right, AU$7,200 ride away. At an exchange rate of 60c (AU$ v US$) the little Ninja should be around $5,800 if there is going to be parity. They're more like $7,600 now. There's not a lot of difference in cost between shipping to Aus compared to the US from Japan. Even looking at economies of scale, I can't see how the 30%+ difference is able to be justified.
  8. Because we're being raped by our government to continue to fund their BS socialist policies
  9. I can - because people will pay that much.

    I wish I had your noble outlook though!
  10. I have noticed that bikes have become cheaper. Especially 600cc and litrebikes. I've seen a couple 2000 model R1's sell for ~$5500 with rego/rwc. And 600's for less.
  11. Just for reference i hold a local senior position in a well known global company so i am someone 'in the know' and can shed some light.

    What you refer to is hedging. Each company is different but most will hedge on a quarterly basis, some hedge on a monthly basis.

    So lets say Q4 is hedged at 90c, when you come to Q1 it's hedged at 60 cents. You lose 30% just due to currency change. Now through 2008 we saw prices DROP across all consumer products. Discounts, freebies, Fireblades for $15k rideaway :shock: Make no mistake, companies/retailers in AU will chop prices as much as they can to stay competitive and they did exactly that!

    So now we have low prices but a 30% drop in hedging the currency. You have companies making 20% now losing 10%. Most companies can absorb 'some' change but a 30% is hard. For the bike companies the 09 models are significantly higher priced. $16.9k for R1 is now $22k, Gixers, blades around $21-$22k.

    The exchange rate is not a lie. It's very real and it's very f%cked up. In the blink of an eye you can drop $10M.

    On to the US market (i've posted on this a few times already), basically the rest of the world subsidises the US. The worlds biggest market dwarfs every other market in the world. Americans spend every cent on consumer goods.

    So a company may decide to sell product at zero margin or negative margin. That means the rest of the world has to make enough profit to make up for the losses in the US market. Often the Australia subsidiaries own buy price is more than the US retail price. Crazy, insane but think of it as us getting 'real' prices and the US is cheating as essentially that's what it is.

    The 'Australian import taxes' argument is mostly hollow. Many companies do not attract much, if any, duty so you only have your 10% GST which isn't much in the grand scheme of things. Yes, some car tarrifs are high but i the companies have worked wonders into blaming the Govt for high prices rather than admit it's the US market competition that has caused it. Afterall, that you upset every other market in the world as it's not exactly fair.

    There's obviously a lot more detail in this but the above gives an idea of how it works. Hopefully the next time a mate brings this up you will be able to give him some insight into why the things are how they are.
  12. ^ holy sh!t mate!

    Good read for the long ride home on the bus.
  13. ignorant that was fascinating! makes me feel like a Mr Ignorant as im just some punter who likes to buy/ride bikes!

    ...hmmm so when im seeing bikes ive always wanted to own (like a cagiva raptor) selling 2nd hand real cheap i should not jump in to buy as my ZX9R will be hard to push on.....but.... if i hold on and the 2nd market pics up...my 2002 bike will be even older.....so will probably even it out anyway?
  14. Camoridz - Don’t get caught up to much in the market stuff. Your ZX9R will be very easy to sell, it’s a well known and sought after machine. An 02 will be near the bottom of it’s depreciation anyway so waiting longer before selling won’t see it plummet.

    Your issue is how the hell you sell the Raptor when you decide to get rid of it. That would be a bloody hard bike to sell!
  15. I will second what ignorant posted above... I have been dealing with this shit as a retailer since about october last year when all of the stock in Aus that had been bought in the golden days of AUD being 98c US ran out and wholesalers started jacking prices... it's been about 30% since then and going to go up higher.

    Not only do companies need to subsidise the US as said above they also need to cut costs and increase margins... That's why in my market you also see the prices going up by more than 30% as I sell a consumable that is necessary for businesses to operate.

    This of course also sucks for me because I hear about the price rises from customers every day and since everyone is trying to cut the fat, my customers look at my price, have a biatch about it and go look around. They might find some place that still has old stock and they sell it for cheaper than me because they bought it for less money. I lose a customer screwed by the exchange rate crashing last year.

    They eventually come back when my competitor runs out of old stock because my prices are generally a lot better but it's not as simple as most people think.

    Believe it or not the retailer is rarely trying to screw you. Of course we want to get as much money as we can from the sale but we also need to pay rent, advertising, wages, phone, internet, we hosting, etc etc etc and believe it or not we also like to earn a wage ourselves :)
  16. I've been looking for a 600 Honda or Kawsaki over the last 6 months and havent noticed any major price drops

    Though I have noticed that bikes are cheaper in QLD for some reason(Im in NSW)