Motorcycle depreciation explained: What every rider should Know

Motorcycle depreciation impacts the ownership experience, and every rider should understand how it affects the value of their bike

RIDING A MOTORCYCLE is much like flying. The rider experiences a thrill and the freedom to go where they choose. However, before buying a bike, a person must know the actual cost of ownership. 

Countless men and women consider the purchase price of the bike as well as the associated insurance costs. They may factor in fuel, maintenance, and repairs when making this calculation. One thing they often overlook, however, is how depreciation affects motorcycles. 

Depreciation impacts more than the cost of ownership. It also plays a role in the resale value of the bike. What must every buyer know about this aspect of motorcycle ownership before proceeding with a purchase? 

Understanding Motorcycle Depreciation

The market value of a motorcycle or any vehicle decreases as the vehicle ages and accumulates mileage. Wear also influences depreciation, and bikes often depreciate faster than passenger cars. Their seasonal usage, susceptibility to damage, and the niche market contribute to the depreciation rate. Additional factors that affect this rate include the bike’s brand and model, as well as market demand. 

Depreciation Factors

Brand reputation influences the depreciation rate of motorcycles. Harley-Davidson models retain more value than bikes made by lesser-known manufacturers. Model popularity also plays a role in this, as high-demand models retain more value than less-popular bikes. A high-mileage bike has less value than one with low mileage because additional miles lead to more wear and tear. Furthermore, the condition of the bike impacts its resale value. 

Market trends must be considered when evaluating a bike’s depreciation. Bikes retain more value in warm-weather climates because they can be ridden throughout the year. There is consistent demand for these machines. Fuel prices and inflation also influence consumer behavior and resale values. 

The Depreciation Curve

Vehicles depreciate rapidly. Motorcycles lose the most value in the first two or three years of ownership. A $20,000 bike can lose up to $6,000 of its value in the first year, even if the driver rarely uses it. People refer to this as the new bike premium. Depreciation slows after the first few years, and the bike will eventually reach a baseline value, which is the lowest it will go. The baseline value varies by the make, model, and condition. However, demand also plays a role in the depreciation curve, as well-maintained classics can retain up to 70 percent of their value after three years due to high demand. 

Minimizing Depreciation

Bikers can minimize depreciation losses using several techniques. Buying used means they will take a smaller depreciation hit. The previous owner had already absorbed the significant decline. A biker can get excellent value for the price. They may be able to upgrade to a better bike when purchasing a used one, thanks to depreciation. 

Purchase a model with substantial resale value. Research different brands and models to find those that hold value. Classic cruisers and adventure bikes tend to remain popular longer than sportbikes, for example. 

Properly maintain the bike to retain its value. Buyers want to see a bike that has been regularly serviced and properly stored. They are willing to pay more for this bike. However, avoid making heavy modifications, as recouping the cost of these modifications rarely occurs. 

Depreciation impacts the motorcycle ownership experience. Every rider should understand how it affects the value of their bike. This information allows them to preserve the bike’s value, so when they are ready for a new ride, they can sell it for the maximum amount.