How does the value of motorcycles depreciate?

 How does the value of motorcycles depreciate?

When one buys a new motorcycle its value can fall at an alarming rate, this can vary from one model to another. The eminent reason why one’s motorbike value is probably low is depreciation. To find out how well a motorbike can hold its value you will need to know how to clearly maneuver, as such your bike value won’t depreciate drastically.

As you know, depreciation is the difference between the value of a motorcycle when initially bought and when you sell it or trade it in. Hence when one buys a used motorcycle or is trying to sell a used motorcycle, the person gets interested in the depreciation value of the vehicle of his or her choice. So there is a need to calculate the depreciation value of the motorcycle and in order to calculate or to estimate the depreciation value of a motorcycle a lot of factors are put into consideration.

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Reasons that cause the drastic depreciation value of motorbikes.

The latest model year factor. As it is the case with all gadgets, once a new model is introduced, the majority of people interested in the new version will consider your bike as old. Also new features, gadgets and the new functions of the latest model drastically reduce the value of your bike. So the more recent your motorbike is the better it holds its value since it’s all about desirability.

Now when a motorcycle is purchased from a dealership it is automatically considered as used even though it might be new. It’s just like once you drive a new car off the lot it ceases to become new and also it narrows down the number of people willing to buy it at a reasonable price. That’s what you face when your bike is ranked as used.

Motorcycles are an asset that wears out over time.

Another reason is the aspect of maintenance. The more the bike is used it demands more maintenance and also repair costs in the future rises hence the value drops significantly. Since its normal as no one can buy an old and worn out motorcycle or parts at the same price as the new ones. So depreciation accounts for the diminished value of the raw materials.

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Factors that affect motorcycles depreciation rate.  

  • Mileage : The majority of modern big bikes are capable of handling high mileages, but big numbers on the clock will affect the resale value. So if your motorbike covers more miles, the less it is worth.
  • Reliability : Here we speak of reputations based on the reliability of a bike. Hence a bike with a reputation for unreliability loses value quickly.
  • General Condition :  Any damage or wear and tear to the interior or exterior and to the body work of the motorbike will lower its value. Also an unloved, less desirable bike will make buyers to haggle over every little detail.  As a seller your bike has to be clean and make sure the chain is lubricated and adjusted correctly a minimum and should not present too much of a hassle.
  • Service History :  to boost the value of your motorbike, the presence of service books with receipts and stamps which serve as evidence that you have adhered to the manufacturer’s recommendations will be of good help.
  • Luxury and standard models :  Luxury bikes tend to depreciate faster in value than standard model bikes. This is because they are expensive to maintain, to run and the spare parts are rare inaccessible and quite expensive leading to depreciation in its value.

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Effective tips to maintain the value of your motorbike.

To ensure the value of your motorbike doesn’t depreciate at a faster rate you need to do a lot of research. It is advisable to do purchase a desirable model that would still be desirable to the next buyer.

Ensure you maintain your bike appropriately.

Having full service history of all your documents which you can give the next buyer will bring peace to his mind. So remember to keep all documents safely as such it will prove that your bike is still in good condition.

Essentially look after your motorbike and repair any damage you notice as soon as possible as such you will avoid a drastic depreciation value on the price of your bike or its parts.

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Akash Dolas

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