When you purchased your motorcycle, selling it may have been the furthest thing from your mind. Yet, people and situations change. Because of this, it makes dollars and sense to go into the purchase with a perspective on how quickly the bike depreciates. Depreciation can be defined as the reduction in the value of your motorcycle because of aging, wear, tear, and other factors.
In the simplest sense, the longer you have the bike and drive it, the more it will depreciate. However, certain factors can expedite your depreciation, which would result in a lower sale price when you decide to sell your used motorcycle. Continue reading to learn more factors that can affect the selling price of your motorcycle. And don't hesitate to reach out to the team at Cash 4 Motorcycles for a free quote and to sell your motorcycle quickly.
A Closer Look at Motorcycle Depreciation
No matter the make or model, all motorcycles will depreciate. If you purchase a brand-new motorcycle right off the floor, the bike will take an initial hit of 5% when you drive it home. While the motorcycle may be considered new to you, it will be used by everyone else. After the initial hit of depreciation when you bought it, it will continue to depreciate rapidly during the first two years. In the first two years most used motorcycles will depreciation between 19% - 27%. In years 3-10, the motorcycle will decrease relatively linearly at approximately 5% annually.
Real-World Example of Motorcycle Depreciation
Let's look at a real-world scenario of how depreciation works on one of the most popular motorcycles in the United States — the Harley Davidson Sportster 883.
In year one, this wildly popular bike absorbs an 18% hit in depreciation.
In the second year, it will depreciate about 6% of its value.
In years 3-10, the bike will depreciate at a rate of around 5% per annum decrease.
Although all motorcycles will depreciate, some tend to depreciate faster or slower than others.
What Factors Determine Depreciation and How Much I Can Sell My Motorcycle For?
There are a number of factors at play when determining depreciation or how much you can sell or trade it for. Some of the most important factors are listed below:
Production Numbers Can Impact Depreciation
The number of motorcycles built and sold plays a key role in determining the value. For example, if Honda produces a large quantity of a particular motorcycle they will sell them at a lower cost. This can drive the resale value down and make them worth much less.
On the other hand, Harley Davidson's CVO and Screaming Eagle motorcycles aren't produced in mass numbers, which can make them much more exclusive. This means these particular Harleys are among the best motorcycles to trade or sell.
The Condition of Your Motorcycle Can Impact Its Value
Would you rather purchase a shiny new toy or a dirty toy that has been treated poorly? When considering the condition of your motorcycle, think of it the same way. Motorcycles that have been well cared for will be worth more than a bike that has been neglected. And issues like dents, scratches, oil buildup, etc. can all tell your motorcycle's story.
The Accident History of Your Motorcycle Can Determine Value
If your motorcycle has been in an accident, it will be worth less than a bike that has never been in an accident. It's important to keep in mind the severity of the accident can also be a factor. Nonetheless, any accident will automatically decrease the value of your bike as well as the number of buyers who are willing to purchase it.
Pop Culture Can Determine the Selling Price of Your Bike
Did you know pop culture can play a mega role in determining how much you can sell your bike for? For example, the Harley Davidson bike that Captain American rode tends to depreciate much slower than normal because of the nostalgia associated with the bike.
Trends & Fads Can Affect How Much You Sell Your Bike for
Some models may appreciate because they have become a popular fad. But once the fad is over, the motorcycle will likely not be as popular and depreciate quickly. This means if you have a bike that is riding a wave of popularity, you may want to consider selling it prior to the fad running its course.
What's the Best Motorcycle to Sell or Trade? Contact Cash 4 Motorcycles
If you're looking to sell your motorcycle, the team at Cash 4 Motorcycles can help! We make selling all types of motorcycles and powersports vehicles fast and easy, especially late-model beauties with low mileage. At the same time, we don't shy away from older motorcycles or even bikes that have been in an accident. In addition, we buy Personal Watercraft, ATVs, Dirt bikes, Side-by-Sides, UTV’s, Campers, and much more.
So, if you're asking, "What's the best motorcycle to sell or trade?", the team at Cash 4 Motorcycles suggests it's the one you're riding on or the one in your garage collecting dust.
Reach out to our team today for a free price and to learn how you can turn your motorcycle into quick cash.