Bike Buyers Tip: How does the release of a new bike affect the value of your bike?
Bike Buyers is in the business of purchasing motorcycles which find themselves on the showroom floor of the famous Fire It Up dealership in Fourways, and the number of motorcycles on the Fire It Up floor suggests they are damn good at what they do. Collectively, they have many decades of bike buying experience and will be sharing their knowledge with The Bike Show Website every Monday offering tips, advice, guidance and warnings regarding your bike buying or selling experience. For this week’s tip, we look into how the release of a new bike affects the value of the previous model and models in its class.
In November every year, the EICMA Show takes place in Milan, Italy, and every major player in the motorcycle world has a stand that is often bigger than a medium-sized village. During that show, they unveil their latest models and set the world alight with excitement and anticipation.
Many people scramble to get their deposits down for one of these models, hoping to nab one of the first when they are released, and this usually means having to sell their previous bike, mostly the last model of the one they are planning to purchase. This causes problems in the used market, especially for that model or models in that class, because used showrooms are then flooded with them, creating a surplus supply and therefore a drop in prices. And this is made more complicated by the fact that dealers will not at first accept trade-ins on these yet to be released models, and the drop in value means they are unlikely to offer decent prices, so these showrooms are littered with bargain pre-owned motorcycles.
While this might be an excellent opportunity for people wanting to grab a good deal on a pre-owned bike, for people currently in possession of one of these bikes it means headaches because the value of said bike has now plummeted.
All is not lost, though, especially for people in not too much of a hurry to sell their bikes, because this drop in value of usually not permanent. There will be a price drop in the lead up to the new model, but once it is released and the flood is over, prices will again stabilise.
Sometimes, the release of a new model even has a positive effect on used bike prices. In many cases, the new model is littered with technology and modern engineering, and that is great for the riding experience, but it also means that the price of this new model will almost certainly be higher. That will drive the price of second-hand motorcycles higher, especially as many people aiming for the new model that have found it out of their reach will now be searching the used showrooms for a suitable replacement for their previous bike.
The advice for people worried about the value of their bike once a new model is being released is to sit tight and wait for the release. The value of your motorcycle will likely either stabilise or sometimes even increase.