Why don't Mountain Bikes hold there value?

[SmokedHam]

Hi Guys, i'm currently stuck in Hospital from a pretty major list of injury's I sustained racing Downhill and as you could imagine i'm bored hense why i'm posting up threads.

Anyway it always annoys me why high end mountain bikes, major brand ones too, like Santa Cruz, Intense the list could go on forever, don't hold there value even if there only a few months old!

Ive sold a bunch of my bikes & some frames over the past few years now and its tough to get a decent price, I understand that on forums everyone is chasing that bargin, even i'm guilty of that, but an example of what I mean,

Current Model Santa Cruz V10
Frame Cost with rear shock, $4,300 this is after I screw a deal on it from my LBS
Cranks, chain guide, front drive ring, chain, rear cassette, $1000
Boxxer Teams 2010 models, purchased when they were on special for $1200
Wheel set $800
Seat $140
Tyres & tubes $120
Derailuer, shifter $200
Heaset $ 100
Brakes $460
Stem & Bars $200
Pedals, cables etc $150
Total = $8670
Now this is just a rough estimate & not even at retail prices which would most likely bring that to over $10k easy.
Now here I am trying to sell exactly this item on here for $5,500.00 and the bike and all of its components are under 12 months old, in fact the frame and a lot of componets were all brand new only 3 months ago and the bike has only been taken out for rides maybe 8 times.

So why I ask you why don't Mountain Bikes hold their value?
You could go out & pay $7000 for a bike today and sell it next week & you would be lucky to get $5000 for it, it does suck!

 

[thecat]

Things are only worth what people are willing to pay. Not too many people are willing to pay top dollar for a second hand DH bike that has no warranty and you have no idea if it was lovingly looked after, abused, cased, crashed, had issues to begin with or is simply awesome.

 

[scblack]

You could buy a car for $35,000 and a year later be lucky to get $25,000, often much less.

Why would you expect people to pay near retail prices for a used item that would no longer have warranty?

Some items that drop the value:

• loss of warranty
• no guarantee of how well the bike was looked after
• newer bikes have better technology and improvements
• bling factor when new
• as you said, cause you can screw the seller
• general wear and tear.

 

[Dozer]

So many things contribute to why they drop their value but the fact remains that once somethign is used it will not be worth what you want people to pay. I have a near new bike for sale and I have put so many tasty features in the sale but my price is still super low.
One thing that needs to be asked is this: Are the prices too high to begin with? If the prices were lower would it lower the resale value even more of your bike? Yep, it sucks to sell something that you spent packets on!

 

[Knopey]

As stated, taking something something brand new out the shop door always drops the value dramatically.

Add to that the fact that MTB's are used in a hostile environment and can be hammered, there's even more reason for a buyer to be wary.

A new MTB can become very second hand very quickly. That makes buying a second hand one even more of a risk than buying a second hand roadbike etc. Same with dirtbike vs roadbike, 4wd vs regular car, etc.

 

[FoxRidersCo]

Depreciation is a Bitch....

You have to remember your main competitor in this industry and that is CRC, people will buy new from CRC over buying a 2nd hand bike/parts these days.

It is nearly impossible to sell a complete 2nd hand bike for as much as you would like these days, maybe consider splitting it as you can find sometimes you actually make more than what you were asking complete but on the downside you can also be left with parts that simply wont sell.

It is almost considered un-scene these days to ride/own used or non current year parts/frames etc.. so that is also a factor sadly as people want the latest and greatest and the stigma that is attached.

My $0.02

 

[Cypher]

The other thing devalueing your bike is competition. There are a lot (relatively) of second hand bikes in certain frame sizes - medium to large male frames.

There is almost no market for second hand ultra small women's frames. I ride an extra small Giant Cypher frame. When I wanted a second hand bike, there were none to be had that were suitable.

Some vintage bikes sell well, but you need to incorporate rarity x market demand x bike condition. A difficult combination - espcially if you are just trying to offload a used production bike.

 

[SmokedHam]

So many things contribute to why they drop their value but the fact remains that once somethign is used it will not be worth what you want people to pay. I have a near new bike for sale and I have put so many tasty features in the sale but my price is still super low.
One thing that needs to be asked is this: Are the prices too high to begin with? If the prices were lower would it lower the resale value even more of your bike? Yep, it sucks to sell something that you spent packets on!

You have a point! Ive always bought what I thought is the best and to be truthfull have always been extremely happy with those products, they have never let me down, but they are more expensive than other brands but at the end of the day the 2nd hand market is still relative, that said once i'm all healed and able to go ride some sweet singletrack again i'm thinking really hard about Giant this time, bang for buck they have to be one of the best value new bikes around, my opinion anyway, and maybe when its time to sell I just might not lose as much because I didn't outlay as much, interesting.

 

[Jobbo77]

Watch any bike go down a DH track and you will have your answer

 

[mattyd]

I like to look at it like this.
I pay 3-5k average for a good DH bike.
I ride it nearly every weekend.
I don't go out on the piss the night before riding saving myself at least 100 bucks.
The bike has almost paid for itself after 12 months.

 

[harmonix1234]

I worked in a bank for five years lending money to people to buy cars and I learned a lot about depreciation and depreciation calculators and some of the reasons believe it or not are something not as tangiable as a warranty or physical condition (even though they do greatly affect the value), but the mental processes.

Peace of mind. You get this when you buy retail as you know the shop will still be there if it all goes to shit. It's what makes some people sleep easily at night.
Confidence. You have complete confidence in something you know has been setup buy someone who does it for a living, rather than the guy with no last name that you found in the trading post.
The new factor. It is virginal, untainted, and you are it's first.
Fear. People assosciate brand new with less risk, and not many people like taking risks and have a great fear of the unknown. Eliminate the second hand option and you eliminate the fear of the unknown.

People like to pay more to have this feeling. It does not justify the massive loss, but it is part of the reason.

 

[.:ROBBO:.]

This is a market full of kids and impulse buyers. Kids buy high end bikes with either their hard earned maca's cash or their parents cash. When they then get old enough to drive this is usually the first thing to go and they are generally sold off fast and cheap as they will do anything to get behind the wheel. Then there is the impulse buyer who is generally older and cashed up who sees something they think looks cool (Dhing) and then after a couple of runs they realise its really not for them so sell the bike off for stuff all just to get rid of it.

Now there is the buyer who isnt really in a hurry to get on the first bike they find. They know a kid or a cashed up ex rider is usually just around the corner and are happy to wait for these bargains. These are the guys that will also low ball everyone just to see if they can get a bargain.

What your looking for is the cashed up buyer that is just looking to get a ride yesterday and these are hard to find but they are out there.

I bought my Demo 9 from a cashed up impulse buyer. He bought it brand new. Upgraded the tyres and rear shock at the same time and then road Awaba once and then didnt feel DH suited him. It then sat in his garage for 3 years. He payed almost 9k new. I payed$1600ish. I was in no hurry for a bike. But wasnt willing to pay what any bike was really worth.

 

[brutasauras]

Honestly as much as i love the bloody things the truth is they are overpriced and there true value becomes apparent when you want to sell them. Remember how excited you were when you planned and bought that bike it was all you ever wanted. Well secondhand byers don`t feel that way or they would do exactly what you did, no they want a bargain and don`t care how much you chose to spend.

 

[dinosaur_mtb]

Honestly as much as i love the bloody things the truth is they are overpriced and there true value becomes apparent when you want to sell them. Remember how excited you were when you planned and bought that bike it was all you ever wanted. Well secondhand byers don`t feel that way or they would do exactly what you did, no they want a bargain and don`t care how much you chose to spend.

All of the above comments and this one as well. They are overpriced to start with and when a new model comes around sometimes they arrive in the country at a better exchange rates so the new models sometimes come through cheaper than the previous years. So there is another reason why there can be a massive drop in price.

 

[SideFX]

You poor basted , didnt you recently snap a Blue V10 ? , and now your wrist . That has got to suck balls .
I think your better splitting your bike to sell . Most bikes are so custom these days and thats what people want . I know that ive looked at bikes to buy and thought , ge thats a great bike but i dont like this and i dont like that and buy the time i change parts i could buy a frame and build one up how i wont it .
Split your bike , hold your price and dont be in a hurry to sell . You should n`t loose out much more than 25 % . The best value frames to buy are second hand , mint high end ones .

 

[Wednesday]

Like dinosaur mtb likened to, the price purchased in your LBS seems to provide a seller with their ground dollar that they are chasing. This is overinflated to begin with and people believe that if i spend $1000 in modifications then i can get the money back on top of that.
The LBS make their cut, mods are even more overpriced/personal choice, add a run out sale on last years bikes and bang!
No service history and/or service with sale, no warranty, no idea of riding use/abuse etc etc!
You should be lucky to get 50% back on it all.
My 2 cents extends to modifications which really dont count for sh#t in terms of dollar for dollar return. Its like painting a house in some artistic BS colour because you like it and thought it looked good at the time? Was it necessary, most times the answer is no. Its pure upgrade-itis and it was your choice. You dont sell a house based on a painted feature wall in your living room where as if you had it restumped or rewired then your price would be firmer/justified but NOT increased.
You see it time and time again, rrp 3.5k start out asking 2.8-5k for a DH bike, a few months later and countless bumps its lucky to go for 1.5k (with its anodised straightline brake levers and colour coded brake lines ha ha).
Just keep the bike and be happy! Selling an 09 to buy a new 2010 wont make you a better rider.

 

[Viv92]

Also with DH bikes there is the maintenance thing. Not saying your bike sucks, I've never seen it, but 8 rides is plenty to kill a lot of parts on a DH bike. DH riding naturally kills your bike, and you need to be pretty obsessive to keep everything working. I think there are two or three guys I know who I would actually buy a second hand bike off, everyone else's are screwed.

Also some second hand stuff is just insanely priced, like 3k for a second hand DH1. WTF...

 

[SmokedHam]

You poor basted , didnt you recently snap a Blue V10 ? , and now your wrist . That has got to suck balls .
I think your better splitting your bike to sell . Most bikes are so custom these days and thats what people want . I know that ive looked at bikes to buy and thought , ge thats a great bike but i dont like this and i dont like that and buy the time i change parts i could buy a frame and build one up how i wont it .
Split your bike , hold your price and dont be in a hurry to sell . You should n`t loose out much more than 25 % . The best value frames to buy are second hand , mint high end ones .

Yeah mate thats me that sold the blue one, infact the new owner has repaired it and sent through some photo's to me which look awesome, now i've had the big crash not my wrist my pelvis this time so retired for real (suxs big hairy ones), but these can happen when your always trying to go faster, competitive by nature turned out to be my curse, anyway whom ever gets this near new V10 will be lucky for sure, its cheap & i need the cash as i'm still laying in hospital. Cheers

 

[SmokedHam]

Also with DH bikes there is the maintenance thing. Not saying your bike sucks, I've never seen it, but 8 rides is plenty to kill a lot of parts on a DH bike. DH riding naturally kills your bike, and you need to be pretty obsessive to keep everything working. I think there are two or three guys I know who I would actually buy a second hand bike off, everyone else's are screwed.

Also some second hand stuff is just insanely priced, like 3k for a second hand DH1. WTF...

Hey Viv92 I know yoy mate & you do know me (well if you see me you would) but I guess you can't vouch for my maintence side of things, but rest assured I am quite annal when it comes to looking after my rigs, cheers for the post.

 

[dain2772]

Honestly as much as i love the bloody things the truth is they are overpriced and there true value becomes apparent when you want to sell them. Remember how excited you were when you planned and bought that bike it was all you ever wanted. Well secondhand byers don`t feel that way or they would do exactly what you did, no they want a bargain and don`t care how much you chose to spend.

but they can't be overpriced. If the true value (of a new bike) was the same as good condition second hand bike, then they would be the same.

If new bikes were that overpriced and second hand bikes represented that much better value, then people would move to second hand bikes, driving up the prices in the used market and driving down the prices in the second hand market.

I think also the fact that few bike shops even consider selling second hand bikes is evidence of how lowly they are valued (and that there isn't a really strong second hand market).

There is just so much uncertainty with a second hand bike in terms of wear and tear. Even after one ride a bike or a component can be so trashed that it won't last much longer. Even after a year of riding most days some bikes and components could be almost new. But you just can't tell.

The shop thing makes a difference too. If you bought all brand new parts, assembled it together with the skill of someone who has been working on bikes for 15 years (and there are plenty here), you wouldn't see the value of your parts back (usually) and you wouldn't come close in price to a shop-sold bike. Some of this is the other services/back-up etc that the shop provides, some is just perception.