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Popularity of motorcycling is now its resale bane

Discussion in 'General Motorcycling Discussion' at netrider.net.au started by pro-pilot, Jan 30, 2008.

  1. I have been fortunate enough to have state by state data on the clearance pricing of lists of motorbikes which has shown some disturbing trends over the last 5 years.

    Its no secret that over this period, popularity in motorcycling (including scooters) has shot up dramatically. Sales in particular models such as the fireblade, R6 and HD models are very pronounced.

    What has followed is an interesting trend.

    The price (cost to the consumer) for these ever increasing models is pretty well static over this 5 year period. However the re-sale value is not.

    Three years ago, popular sports bikes depreciated 25% in the first 12 months of ownership, compared to nearly 40% last year. This information is based on dutiable value declared by make and model, along with trader data.

    It would seem the love affair with bikes is glutting the second hand market, but not affecting the original retail price.

    A market correction needs to take place!



    What has been your experiences?
     
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  2. If I'm reading your post correctly...

    I'm going to buy again (something newish, but not new) soon - so hooray! However, I've only seen a couple of bargains lately imo, unless you count the 250 market.
    As for buying new, you always get screwed. I went into a Triumph dealer not long ago and the guy seemed to think the bike would sell itself. He only started to talk to me when I walked out the door.
     
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  3. Haven't had any of my own experiences but that to me sounds worse than car re-sale trends...not that I've looked into how the car resale market - private/public, behaves. But yeah, that sucks. Think I'll be holding onto my ZX6R for a long time then, even if it goes from commuter to tracky bike when I get a better bike or, dare I say it, a car *shivers*.
     
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  4. Yeah, IMO this just adds weight to my incessantly given advice to go for something a couple of years old over something brand new.

    It does vary by model, though - recent SV650s, for example, are often advertised second-hand for less than they can be had for new.
     
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  5. I should bloody well hope so. Who on earth would pay more for a 2nd hand bike?
     
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  6. Are you sure the depreciation trend is 40% in the first 12 months?

    New R6. Approx 15,000.

    06-07 2nd hard between 13000-14,000.

    05 around the 10-12k.
     
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  7. Collectors :)

    Yep, noticed the same sorts of things - but hasn't previous year model run-out pricing gone down [maybe not original retail, but when they want to get rid of last years stock]?

    I think I remember some 12 month old CBR600RR's dumping a couple of grand in resale value a few years ago...
     
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  8. 40% seems a lot, is that wholesale or retail pricing??

    So I could get a 1 year old blackbird for less than $10K?
     
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  9. The logic here doesn't make sense.

    If increased demand were to be driving prices it would be up, not down.

    40% is high. I might believe it on the odd bike like a xyz 600 rrrrrrrr or a bike where there was a big factory discount towards the end of a model run, but in general I'd say 25% would pull most bikes up in the first year then not much for a couple of years.

    The change I have noticed is that after a couple of years bike do drop more than they used to.
     
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  10. I think the point was that there is increased demand in the new sportsbike market but little change in demand from the used market, thereby creating a glut of 2-3 year old bikes which subsequently drives down the value of used sportsbikes.

    I'd like to see a bit more evidence from other bike sectors. I haven't noticed much of a change in nakeds or tourers for example.

    Anyway, lower prices is a good thing - better bike for less. :)
     
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  11. Some late model bikes, increase in value or at least stay steady.
    Esp when there no longer in production ie: Firestorms :twisted:
     
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  12. Are the stats scewed by the glut of 250's and scooters coming on to the market? That would make sence
     
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  13. My experiences?

    2001 Moto Guzzi V11 LeMans new $21000 sold 7 years later for $9500 (that's about 8% depreciation per year).

    2002 Kawasaki ZRX1200R new $14000 sold 4 years later $7500 (that's about 11.5% depreciation per year).

    1999 Triumph Sprint ST new (with options) $19500 sold 3 years later $8500 (that's about 19% depreciation).

    1996 Suzuki Bandit 1200 new $10990 sold 3 years later $6000 (that's about 15% depreciation).

    my 2006 Bandit 1200S was $12990 new and is worth about $8000 now (that's about 19% depreciation).

    My observations are these -:

    Bikes depreciate most in the first couple of years so if you buy a new bike try and keep it for 4 to 5 years in order to minimize your % loss.

    Sports bikes tend to depreciate faster than other styles of bikes (consider another style of bike in order to minimize depreciation).

    Options add to the cost of a new bike but seldom add to the sale price (consider removing them, refitting the stock items and selling the options seperately).

    Expensive bikes more often depreciate at a higher % rate than do cheaper bikes.

    More importantly...

    buy something you'll be happy with longer term, compromising means being unhappy earlier and changing quicker (during the higher depreciation years).

    *edit*

    Now all I have to do is decide what to replace the V11 with :?
     
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  14. Show me an ad for a 1 year old 600 supersport thats 40% off.

    Thats only about $9000 for a K7 GSXR.

    I can't find a decent 5 year old for $7000
     
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  15. bikes are like property. you never sell them when you buy another one

    i don't buy a bike unless i love it. and i don't sell things i love
     
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  16. Here lies the issue. It is not the advertised price of the bike. It is the clearance price.

    There are bikes that have been advertised for months on end, only to be traded in at less than half their value.
     
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  17. D'oh! Yeah, I said that the wrong way 'round: the newish second hand ones are more than the new ones, among SVs I mean.

    ZRX, I'm not sure you can average the depreciation over longer periods like that, since it's not a linear curve but one with a steep slope at the beginning that flattens out later. i.e. probably as much depreciation occurs in the first 6 months as occurs in years 6-9 total.
     
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  18. My recent experience . . .

    2nd hand MY04 Ducati Monster 620ie w/ Termigoni exhausts, new Pirelli Diablos, single seat cowl, bikini fairing.

    Purchase - $8,800
    Insurance Payout - $10,000

    14% appreciation ! :eek:

    So hold on to your Monsters guys !
    There are hardly any second hand and they are holding values !!!
     
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  19. How much in premiums have you paid out over the years?
     
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  20. The market correction that needs to take place is one that would bring the inflated prices of new bikes down to their actual market value. Second-hand values are fine - it's the new bikes that are overpriced.
     
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