Second hand bikes - depreciation

[Kevlasultanpus]

Wondering if the rest of the world is having a marked increase in bike depreciation. Here is Aus i have noticed a rapid deprecation versus bike holding their value as was the case a year ago.

Last year I sold a Focus Jam2 for 70% purchase price after 2 years of ownership and could have easily got 80% if i was greedy.

My H30 Rise 2022 was purchased at May 22 for $10K Aus .. its 15 month old and even with brake / upgrades ($1500) bikes here of same ilk a going for $6000.

Any opinions welcomed.

 

[Bummers]

Supply and demand. There was a global shortage 18 months ago, prices went silly because of it.
Supply has now outstripped demand and the knock on effect is it's now a buyer's market where cheap deals can be had.

 

[Tooks]

Plus there’s the Covid bubble effect, a lot of bikes purchased when people had more time on their hands, and they’re hitting the used market now that people don’t or have lost what interest they had.

Not sure if it’s impacting Aus the same, but a lot of people are being squeezed by the cost of everything these days (mortgage/rent, food and bills here in the UK) and there is less spare cash about.

Supply chains have also freed up a bit the last year or so, more stock around and retailers are also discounting quite readily on some emtbs to try and counter that a bit and keep the money coming in.

My ‘not an economist’ 2p worth anyway!

 

[Polar]

Sold my 11 month old Turbo Tero 5.0 paid 63 sold 33 but got a new Levo comp old price 76 now 65. Selling low buying low.

 

[Tony4wd]

Not sure if it’s impacting Aus the same, but a lot of people are being squeezed by the cost of everything these days

It's the same in Australia.

Being unable to sell a used bike for a reasonable price makes it harder to justify a new bike, adding to already reduced sales of new bikes. Of course the situation will turn around at some stage; I expect manufacturers have cut production.

 

[steve_sordy]

The Focus Jam2 was a genuinely beautiful bike, whereas.....

 

[Stihldog]

It’s easier for me to list the things I didn’t upgrade;
1- Trek Rail 9.7 frame.(2020 model)
2-623w battery.
3- Bosch CX gen4 motor.

This thing is a tank…but I like it with the upgrades. I thought about getting the new lighter EXE but I don’t think it would stand up to the trails I ride. And then I would probably upgrade everything . Or maybe my frame will crack or break then I could get a new eMTB. But apparently the frame has a Lifetime Warranty. .

Maybe a new sticker will make me happy . Makes cents.

 

[JP-NZ]

Wondering if the rest of the world is having a marked increase in bike depreciation. Here is Aus i have noticed a rapid deprecation versus bike holding their value as was the case a year ago.

Same here in New Zealand but look at new bike prices, 90% of new EMTB's here are 15% to 20% off RRP within months of launching. Cheaper new models mean used older models drop in price far quicker.

If you use your bike every other day like I do then at least your getting value out of it.

 

[Another One]

To be fair the prices have been far too high, literally every dealer is offering discounts in the UK.

 

[Plummet]

Yeah, through covid there was some some serious lack of supply and second hand bikes went through the roof.
move on a couple of years and there is now and oversupply and bike shops have stock they cant sell and are discounting to cost or below just to get ride of dead stock and get some cash flow.

Talking to my local bike shop this winter has been super slow. its hard times out there for bricks and mortar shops.

But if you are a buyer at the moment you should be able to get a good deal.

 

[RipGroove]

To be fair the prices have been far too high, literally every dealer is offering discounts in the UK.

Not Cube! Well not my local dealers anyway. I pre ordered a '23 bike in January and didn't receive it until June because of supply shortage and because they were in demand there was no way they were offering any type of discount.

 

[mike425]

I think in the last few years there has been an influx of new riders that got used to prices being high on the used market.

All that I see has happened is that the value of used bikes has gone back to what it always was, the issue being now that people are losing a small fortune as the prices on them new went up so much!

I am after a BTR full suspension frame and I have had a good laugh with a couple of people selling them over the last 12 months. They seem to be under the impression that as BTR cant afford to make them anymore their 4-5 year old frames are now worth the same as the day they bought them new. Low and behold, they are all still for sale!

 

[Stihldog]

If I had to do an eMTB purchase again I would know exactly what consumables and accessories I want. But what price would I sell my current eMTB for. The upgrades are almost the same price as the original eMTB. I could never expect to recover those costs.

Maybe things will start to change? A LBS (high end parts) has just started to sell two brands of MTB frames. You can add or remove any of the accessories, components or consumables. The shop will price it out, build the bike and offer some advice. Every bike is unique and suited for the customer. They haven’t moved into the eMTB market yet, but they are my goto lbs for any bling I want to add to my eMTB.

So what price can I expect for my 2020 Rail 9.7? It fits like a glove and is upgraded to death. I’m not sure I could gain too much from a new eMTB, and I would certainly lose if I tried to sell it.

 

[Rando_12345]

I hurts to think about, but I have not been able to shift my 2018 Commencal, it cost me 4500, I have moved brand new wheels and transmission from my new bike, recent fork for mullet setup, selling with 2 batteries, the motor was replaced and still under warranty.

Very few enquiries despite knocking the price below 3k, I have been keeping an eye on the market, others also seem to have their bikes listed forever and are bumping the prices all the way down closer to 2k. I'm slowly coming to terms that this might just become a "pub" bike (or in my case "boulangerie" and creche dropoff trips) and backup when the main bike blows up. This would suit me expect for having no space at all in the garage and the bike being way too close in application to the new one, so very much a waste.

But on the other hand: I get it, I wouldn't buy used unless I knew the motor was bulletproof or was covered for 2 years, both scenarios not realistic. As a song once said "It cost me 6G's, I crash it into trees" , this hobby isn't gonna make us money...

 

[#lazy]

If I could get £2.5k for a 5 year old bike that cost £5k I’d be pretty happy tbh

 

[Stihldog]

Wall decoration? Spare bike for visitors? Spare parts holder? Test monkey? Investment reminder? Larger house? Etc.

I could probably find a reason to keep the ole-bike.

Just need to convince da-boss.

 

[RiderOnTheStorm]

I have an opinion on this. I believe selling second hand ebikes will become more and more difficult in years to come without the sellers taking a massive loss.

Market value and appeal (interest) for used e-bikes is currently tanking, as the price of brand new bikes and components have been going down, making new bikes more affordable, more attractive to buyers.

Blame it to the burst of the pandemic bubble, excess supply inventory or decreasing cost of electronic components, like batteries, over the past 10 years.

At any rate, I think this trend will continue for some time, until the next big crisis (chineese war over Taïwan perhaps).

 

[Rando_12345]

All the above, but add to that rapidly changing technology:

I sold my 2019 YT Capra at the start of the year, the difference between it and a 2023 model were ~1 degree of seattube and headtube angles, and you could fit a bottle to it, pretty much the same bike otherwise.

Take a 3-4 year old ebike compared to its new version in almost any brand: most likely bigger battery, most likely more powerful motor, most likely significantly improved geometry, better integration...

It isn't planned obsolescence, but for sure the bike industry must love this planned irrelevance built into the marketing cycle, which they haven't been able to do for mtbs for years since good 29ers/mullets were released.

If I could get £2.5k for a 5 year old bike that cost £5k I’d be pretty happy tbh

I agree with this statement, but in my example it isn't quite so simple as the wheels, tyres, bearings and drivetrain are brand new, while the fork, motor, battery mount and one battery are under 2 years old.

 

[Dax]

I agree with this statement, but in my example it isn't quite so simple as the wheels, tyres, bearings and drivetrain are brand new, while the fork, motor, battery mount and one battery are under 2 years old.

Swap the wheels onto your new e-bike?

Warranty is the key thing with e-bikes, buying used I either want a new motor or a decent warranty left. Otherwise I’ll assume it’ll need a motor in the next few months and pay accordingly

 

[B1rdie]

The problem is that the number of smart buyers keeps steady, whyle the number of people willing to pay silly money in order to buy a dream increases exponentially…

 

[Dax]

while the number of people willing to pay silly money in order to buy a dream increases exponentially…

Depreciation of used bikes appears to disprove this theory

 

[Hattori-Hanzo]

What about breaking the bikes down and selling it in parts? Fork, shock, brakes, frame, motor, etc?
If you managed to sell everything could you make a lot more than selling it whole?

 

[#lazy]

All the above, but add to that rapidly changing technology:

I sold my 2019 YT Capra at the start of the year, the difference between it and a 2023 model were ~1 degree of seattube and headtube angles, and you could fit a bottle to it, pretty much the same bike otherwise.

Take a 3-4 year old ebike compared to its new version in almost any brand: most likely bigger battery, most likely more powerful motor, most likely significantly improved geometry, better integration...

It isn't planned obsolescence, but for sure the bike industry must love this planned irrelevance built into the marketing cycle, which they haven't been able to do for mtbs for years since good 29ers/mullets were released.


I agree with this statement, but in my example it isn't quite so simple as the wheels, tyres, bearings and drivetrain are brand new, while the fork, motor, battery mount and one battery are under 2 years old.

That’s just maintenance , I doubt you’d get more cash just less likely to get knocked from you original price

 

[B1rdie]

Depreciation of used bikes appears to disprove this theory

I can’t see how, since these people never buy used. My point is that its mch more easy to find people willing to spend 10.000 + on new “dream” bike than wise buyers looking for a good <5.000 with “old geo” or “bad motors”…

 

[RiderOnTheStorm]

With the growing popularity of e-bikes, manufacturers are increasing their production volumes, lowering their cost hence the customer price drops we are seeing more recently. This trend will continue for some time in my opinion.

In geographies/countries where wages are low and inflation is on the rise, I think most folks will go after cheaper or discounted prices on new e-bikes rather than paying premium rates.

 

[irie]

With the growing popularity of e-bikes, manufacturers are increasing their production volumes, lowering their cost hence the customer price drops we are seeing more recently. This trend will continue for some time in my opinion.

To the contrary, current price drops are a direct result of over supply caused by reduced demand.

 

[Tonybro]

To the contrary, current price drops are a direct result of over supply caused by reduced demand.

Reduced demand being a combination of factors, high interest rates making finance less affordable, mortgage and rents increasing, etc.

 

[Book'emDanno!]

My case (in Italy) I'm in the middle of selling my tank Focus Sam² 6.9 2021 (bought discounted) in April 2022 with 300km. On it. At the time it was a deal. Now it's up for sale since June and still no one has contacted me.
Oh it now only has 760km and the reason I'm selling it is because of 2 motorcycle accidents in 3 months that left me a little bent out of shape.

 

[Dave G]

6 ago weeks bought a brand new (2023) Specialized Turbo Levo (alloy) for £1200 less than retail.

 

[Book'emDanno!]

My case (in Italy) I'm in the middle of selling my tank Focus Sam² 6.9 2021 (bought discounted) in April 2022 with 300km. On it. At the time it was a deal. Now it's up for sale since June and still no one has contacted me.
Oh it now only has 760km and the reason I'm selling it is because of 2 motorcycle accidents in 3 months that left me a little bent out of shape.

Bought it for 5.5k.. now after 16 months current value is 4.5k.. still trying not to give it away with That price but it seems I'm going to keep her or trade it in for something else (maybe a SL..)