The decision to purchase a new motorbike isn’t one to be taken lightly. There are a lot of decisions to make throughout the process and lots for you to consider. At some point you will need to ask yourself these questions. How much can you afford to spend? Should you buy new or save money and buy a good second hand bike? Do you need a warranty? Can you pay cash or will you need a bike loan to seal the deal?
Everyone loves that new bike look and smell. The odometer reads zero, the bike has flawless new paintwork, you stick to the recommended run in procedure and of course you make sure that all of your mates gets to check it out.
As we mentioned a little earlier, there are a lot of factors to consider, so here are some things to think about before making the decision on whether to buy a new bike or a used bike.
Your New Bike Will Face Instant Depreciation
Depending on your bike of choice, your new bike could lose as much as 15 percent of its value the minute you ride it off the lot. That means your new $20,000 ride might be worth as little as $17,000 by the time you get it home to show your partner. And one year later your bike might now be worth as little as 70 percent of what you paid for it or $14,000. Unfortunately the news only gets worse from there. Your bike could be worth as little as 40 percent of its retail price five years after you buy it.
New Bikes Can Bring Higher Costs
Your monthly bike loan repayment isn’t the only way a new bike can affect your wallet. People forget that new bikes will generally cost more to insure and your standard running costs may also differ from that of a bike that already has a few kilometres under its tyres. What this means is that a new, more expensive bike might cost significantly more to insure and maintain than that of a used less expensive bike.
Weigh Up The Benefits
So you now may be thinking that you like the idea of saving yourself some money when you buy a used bike instead of new one, but what about the emotional aspect of your purchase?
Sure, you might not get that feeling of riding away from the dealership on your brand new bike with a shiny paint job and new motor smell wafting up from beneath you, but weight that up against the psychological boost you will get from not having to worry about taking a big hit in depreciation before you get home.
We all know that sooner or later our new bike will start to look like a used bike. Buying a good late model second hand bike can save you thousands on your purchase price and reduce the monthly bike loan repayment that you have to come up throughout the term of your bike loan.
The bottom line is it’s your bike and your decision, but it’s important to understand what having a new bike really means financially. Check out this loan calculator to work out how much your bike loan may cost you for your dream bike.