Basic economic theory dictates that over its estimated useful life, the value of anything will depreciate annually – this holds true for cars and motorcycles alike.
Though most bikes become trendy quickly, some achieve iconic status due to specific events or individuals such as Uma Thurman’s Kawasaki in Kill Bill or Peter Fonda’s Harley in Easy Rider.
Production Numbers
At first, motorcycle values depreciate rapidly as soon as you take possession of one; during their first year of ownership they experience the largest drop, before their resale value steadily declines for about half a decade thereafter.
Production numbers associated with any particular make and model can play an integral part in its depreciation. The less identical motorcycle models produced and sold, the greater its value will be. When searching for motorcycles that quickly depreciate, look for makes that offer limited quantities of specific models.
Some motorcycle brands depreciate faster than others, including Victory and Hyosung which become less trusted over time due to being relatively newer offerings. BMW motorcycles similarly depreciate quickly as their popularity among richer riders tends to lead them to replace older versions for newer versions more frequently than expected. Some iconic models may depreciate slower due to being cultural icons.
Condition
Calculating depreciation on a motorcycle depends heavily on its condition. A bike that has been properly cared for will retain more value over time than similar models that have experienced more wear-and-tear.
That is why proper maintenance of your motorcycle is of utmost importance. Replacing components with OEM or upgraded versions may help decrease its depreciation; additionally, such factors will be taken into account when calculating two-wheeler insurance premium prices.
When selecting a motorbike that will appreciate, look for brands and models with low production numbers, so your bike will become part of an elite group that are more likely to keep its value than others. Or select models known for durability or famed through popular culture; something such as Captain America riding Harley Davidson will appreciate more quickly than regular Harleys would.
Accident History
Depreciation on motorcycles typically happens over the first two years of ownership, due to their increased value at first purchase versus their reduced worth over time. Even with proper care and maintenance, brand new bikes often lose value quicker.
Depreciation rates on bikes vary by model and make. IDV calculators offered by various insurers allow you to determine its current market value; but please keep in mind that this figure doesn’t represent its purchase price.
Insurance companies consider the rate of depreciation when settling two-wheeler accident claims. Drivers declaring lower IDV will receive lower compensation at claim settlement time; for this reason many opt for zero depreciation covers as a means to both increase compensation while simultaneously saving on premium costs.
Pop Culture Influence
Motor bikes can do several things to slow their depreciation. One way is through updates, like repainting their gas tank, rebuilding their engine or powder coating their frame – these will all increase its desirability and allow for higher sales prices when selling off.
An important factor affecting a motor bike’s value is whether or not it becomes a popular or iconic object for whatever reason, such as being featured in movies such as Terminator or Easy Rider, such as Peter Fonda riding Ducati 996 from Easy Rider and Uma Thurman riding her Kawasaki ZZ-R250 from Kill Bill.
Motorcycles that become trendy or iconic tend to depreciate more quickly than others due to the temporary nature of such status; however, some brands like BMW are better at maintaining their value than others.