Determining the value to sell your second-hand bike at…

[eddy]

 

not according to the guy that worked out he should sell his bike for R7.25..wasnt being sarcastic, wanted to explain what I meant....

 

That was me.

 

Depreciation at 10% p/a on a declining balance method applied to the purchase price over the period of ownership and taking a 50% knock in the first year, brings me to R7.25

[ThePubSA]

Peach said it once.... with the prices of bikes on the hub..they seem to be a real investment... on here.

When in fact i can often almost purchase new for what some think there's is worth..

 

The'ole' less the 1000 kms.. but been in my garage for 10 years...must still be worth the same.

[Fabian46]

People can sell their bikes for exactly what they want.. not telling anyone what to do - I just made the observation that bikes sit for ages and don't sell.. I have always used the formula\equation which I mentioned in the start and the bikes I sell go quick, maybe I undervalue the bikes, maybe I don't..??

 

Sorry, but have you had to sell one of your bikes for half the price after 1 year? And how did you even come up with that formula with all due respect? That formula is really not applicable. Sales are always based on demand.

 

So what you are essentially saying is that a top of the range Spez seling at 130k a year later should be 65k, but it still has top of range components...but the "equation" calls for a 50% depreciation.

 

Doesnt make sense.

 

I agree with "willing seller....willing buyer"

[kingalton]

That was me.

 

Depreciation at 10% p/a on a declining balance method applied to the purchase price over the period of ownership and taking a 50% knock in the first year, brings me to R7.25

Eddy,I am not being sarcastic.. I promise, I don't know how you get to that number, how old is the bike, what was the purchase price?

[kingalton]

Sorry, but have you had to sell one of your bikes for half the price after 1 year? And how did you even come up with that formula with all due respect? That formula is really not applicable. Sales are always based on demand.

 

So what you are essentially saying is that a top of the range Spez seling at 130k a year later should be 65k, but it still has top of range components...but the "equation" calls for a 50% depreciation.

 

Doesnt make sense.

 

I agree with "willing seller....willing buyer"

never sold my bikes after a year, usually after about 3 years..

[Patchelicious]

So what you are essentially saying is that a top of the range Spez seling at 130k a year later should be 65k, but it still has top of range components...but the "equation" calls for a 50% depreciation.

 

That actually happens a lot. I have seen several 2013 S-Works for about the 50k-60k mark. A buddy is selling his 2014 Marathon for R50k, about R30k less than new, close on 40% in a few months. HOWEVER, that was his choice, and people base their price on many things, like personal value, reason for selling, urgency of selling, nevermind the usual stuff of components/condition, brand bla bla bla.... So best way of seeing what you should price something for if you want to be market related, is look around and see what others are selling their similar bikes for, and decide. Do you want to sell quicker than them therefore price it slightly lower, or are you willing to wait it out a bit and charge a bit more.... Asking price and sale price are two very different things.

[Wyatt Earp]

Steel is real.

Never goes out of style, never gets old and when you do decide to sell it after 6 years with a loss, you would have had a good return on monies invested.

[Rooi Willem]

Hi Guys, not sure if anyone has started a topic like this?

 

It seems guys are overpricing their secondhand bikes on thehub.. if you see the amount of bikes that sit on the hub and don’t sell, I think some guys are pricing their bikes incorrectly.. (especially MTBs)

 

The equation I have always worked on and been advised to work on is the following.

 

After the first year 50% of the value is dropped, then 10% each year after that.. it may seem harsh, but as with cars, as you drive it out the door, the value instantly drops...

 

Any thoughts on this?

 

I've sold my bike for about 80% of the new price. I showed the buyer my invoice for buying the bike and he was happy paying what he did.

 

Whats the problem?

[kingalton]

I've sold my bike for about 80% of the new price. I showed the buyer my invoice for buying the bike and he was happy paying what he did.

 

Whats the problem?

no problem, if he is happy and you are happy then no one can fault you or him...

[Fabian46]

That actually happens a lot. I have seen several 2013 S-Works for about the 50k-60k mark. A buddy is selling his 2014 Marathon for R50k, about R30k less than new, close on 40% in a few months. HOWEVER, that was his choice, and people base their price on many things, like personal value, reason for selling, urgency of selling, nevermind the usual stuff of components/condition, brand bla bla bla.... So best way of seeing what you should price something for if you want to be market related, is look around and see what others are selling their similar bikes for, and decide. Do you want to sell quicker than them therefore price it slightly lower, or are you willing to wait it out a bit and charge a bit more.... Asking price and sale price are two very different things.

 

I agree with you. There's just too much too take into consideration.

[Greg29]

Simple economics of Supply and Demand. A well priced bike does not hang around on the Hub for too long. Having said that, 50% in 1 yre is quite steep. I would have thought it's closer to 30%.

[Wolfie1]

My 2 cents guys

 

As far as i know insurance and some bicycle shops work on the principal of Less 30% per year of ownership. You paid R30 000 new in 2013 so in 2014 your bike will be worth R21 000 and the year after that R14 700

 

Mountain bikes take hammering and services some times are not done properly. The same with motocross bikes. you can make it sparkle from the outside but who knows whats happening inside and usually that matters.

 

My 2 cents

[Pikey]

. So best way of seeing what you should price something for if you want to be market related, is look around and see what others are selling their similar bikes for, and decide. Do you want to sell quicker than them therefore price it slightly lower, or are you willing to wait it out a bit and charge a bit more.... Asking price and sale price are two very different things.

Agree 100% Supply & demand. But asking price & sale price shouldn't be that different if your price is market related,unless the sale becomes urgent.

[Pure Savage]

Really depends on the brand, certain brands hold the value better over time than others.

 

Certain models also are a favourite in South Africa and dont decrease in value as much.

 

Heaven forbid you want to sell a 26er for more than R4000

[Patchelicious]

There is the other end of the scale. I sold both my previous road and MTB bikes for what I bought them for-ish….

This was purely because I managed to buy really good deals.

 

I had bought a second hand carbon Fuji on the Hub for R8k, rode it for 6 months, did a few upgrades (about R2k worth) and sold it for R10k, within hours of it being on the Hub.

 

My first MTB NEW, (one of those good Solomons in store deals) was sold for the same as what I bought it for new, only upgraded the grips and tubless conversion.... sold within days of being on Hub. Was almost 2 years old. Low mileage though.

[Mokgaga'a mmakubela!]

i believe in market forces. let demand and supply curves do the work