Pre Owned prices

[Paul Ruinaard]

The issue is nobody looks at the price that the goods actually sold at . 

 

So you see the comment "I saw it listed on another site at x". Which holds no water - cause if the first seller is mad on his pricing then you are just joining the tribe.

 

The price achieved will be what actually should be monitored. That is what matters.

 

There are guys trying to sell second hand things at higher than online store prices based on the fact that there is no shipping on it.

 

Just ignore them and watch the prices drop.

 

Maybe we need to monitor re-listings with lower prices?

 

 

[Thomo]

What gets to me is how the older bikes have suddenly jumped in value. I bought a Peugeot from a second hand shop for R350. I sold it about 10 years ago for R200. I've seen these advertised for R5000 now. I wish I had kept it.

 

Some become classic collectors items.

[JScottP]

How often do people sell their bikes in order to upgrade, and on that basis will try pay in as little as possible for their new bike, therefore they will advertise their bike for a higher value? Is it not also a case whereby sellers who are upgrading are really pushing their financial limit for their new bike, therefore over pricing their used bike.

[Edge_Design]

The only fair price is the one that the buyer is willing to pay and the seller is willing to sell for. Who cares what they ask for it - if you don't like the price then move on. What a lot of these posts essentially saying is that you want something that you can't afford and there are no bargains available. 

 

Why don't you lower your expectation of what your money will buy you and then you'll probably find something at a fair price straight away. New prices have increased dramatically over the last few years so it's only logical that used prices will follow.

 

There is no guide/formula for prices - do your research, get to know the market, and buy the bike that seems to be a fair deal to you. Easiest method for me is to add up the value of the components separately and see what I would be "paying" for the frame - it's the only part that is often hard to price.

[Patchelicious]

People always expect to get more than what they bargained for, be it with their money when buying or be it for how much they can sell for when selling.

 

Reality sucks sometimes but there is no getting away from it.

[Chro Mo]

The flip side of the coin is that some seriously well made and restored road bikes sell for almost less than the scrap metal price!

Yup - boggles my mind that hand-made, steel-framed beauties that were good enough, in some cases, to win the TdF go for such low prices.

[eddy]

I think we are, and will continue to see, the effect of the rapid depreciation of the ZAR over the last year or two.

 

This has had an inflationary effect on all imported goods and bicycles and components are directly affected. All bikes, even the local brands, are exposed for 100% of the manufacturing cost on the exchange rate.

 

As the prices of new goods accelerate upwards, it provides upward momentum to comparable and alternative second hand goods. It applies to bicycles as much as it applies to houses.

 

If a 2015 bike retails for say R40k and its model predecessor, paid for by the imported in 2013 rands and delivered in 2014 retailed for R28k new, rational consumers will recognise that paying R22k to R25k for FUNCTIONALLY the identical product second hand, is the appropriate response.

 

Of course bike manufacturers, like electronic good manufacturers try and build in obsolescence into their product so we keep buying new, and so we believe that a 2105 SL4 at twice the price of what a 2012 SL3 cost is needed to be competative, even though that frame was good enough to win the TdF.

Edited July 20, 2015 by eddy

[nonky]

This is good info and a good discussion, thanks.

 

The question remains whether the 25%-30% initial depreciation should be off the PURCHASE price or the CURRENT selling price? My feeling is that the bike's depreciation should be from its COST price.

 

The ZAR devaluation over the last few months is going to NAIL us when the 2016 bikes come in - we could face the situation where this currency devaluation undermines the "natural" depreciation / 2nd-hand value of bikes (just like in the auto industry).

 

Basically, you're looking at a new bike at a higher price than your current bike BUT lower in the same range / worse spec ...   

 

Whatever happens, our sport/love/habit is going to get even more expensive.

[Steven Knoetze (sk27)]

I think we are, and will continue to see, the effect of the rapid depreciation of the ZAR over the last year or two.

 

This has had an inflationary effect on all imported goods and bicycles and components are directly affected. All bikes, even the local brands, are exposed for 100% of the manufacturing cost on the exchange rate.

 

As the prices of new goods accelerate upwards, it provides upward momentum to comparable and alternative second hand goods. It applies to bicycles as much as it applies to houses.

 

If a 2015 bike retails for say R40k and its model predecessor, paid for by the imported in 2013 rands and delivered in 2014 retailed for R28k new, rational consumers will recognise that paying R22k to R25k for FUNCTIONALLY the identical product second hand, is the appropriate response.

 

Of course bike manufacturers, like electronic good manufacturers try and build in obsolescence into their product so we keep buying new, and so we believe that a 2105 SL4 at twice the price of what a 2012 SL3 cost is needed to be competative, even though that frame was good enough to win the TdF.

 

I agree with you, the current selling price should be a factor. Especially with regards to the escalation in new bike prices.

Ultimately the seller will get less than what he wanted while the buyer will pay more than he wanted.

If both parties are equally unhappy then a good deal was struck. It's when the deal is more in favour to one side that pricing is an issue.

[Pete the Pirate]

Simple capitalism

Willing buyer, willing seller

Every item's only worth what someone is prepared to pay

As a buyer - do your homework

As a seller - have integrity

[Malpiet]

What gets to me is how the older bikes have suddenly jumped in value. I bought a Peugeot from a second hand shop for R350. I sold it about 10 years ago for R200. I've seen these advertised for R5000 now. I wish I had kept it.

the reason I bought my old bike back that I sold to buddy 12years ago. Those 8spd campy wheels and groupset will come in hand

[Maniax]

Agreed.

[David Marshall]

I often get asked what I think a bike is worth.  I use the formula that Bike Bay used to use ie -40% off new price after the first year and then about -5% per year thereafter to around 5 years then it flattens.  Condition then must be brought in.  Timing of the sale and market sentiment then plays a role.  I try to time the sale of entry/mid level road bikes to before 94.7. 

[DJR]

I often get asked what I think a bike is worth.  I use the formula that Bike Bay used to use ie -40% off new price after the first year and then about -5% per year thereafter to around 5 years then it flattens.  Condition then must be brought in.  Timing of the sale and market sentiment then plays a role.  I try to time the sale of entry/mid level road bikes to before 94.7. 

Pretty close to right

Edited August 2, 2015 by DJR

[Klaus]

Agree with Vetseun. Market price rules. Unless of course you are a communist and think prices should be regulated. Some bikes retain their value better than others. Just like cars etc.

Local second hand car values are regulated by book values and not by open market

[marko35s]

Local second hand car values are regulated by book values and not by open market

Book value is a guide not a regulated amount.