Depreciation

[bigandclever]

What a dull topic

Anyway, is there a general rule of thumb for working out how much a second hand bike should cost, particularly versus the original cost?

I'm in the midst of a conversation with someone who is selling his (relatively new but used) bike for a figure close to what the retail was. I have a pretty different figure in mind. But I'm conscious that neither of us is necessarily 'right'. It's a fairly mainstream bike with mainstream components, so I can work out the cost new easily enough. And I can work out, for the most part, what buying the individual bits would likely cost me 2nd hand. So is that the best way to do it?

I don't mean to overanalyse, since if he really wants to get rid then he will; in the same way if I really want it, then I'll pay. Just what, if any, are the guidelines?

[-C-]

It really depends on what it is & the spec.

More often than not its better to split the main components up & sell the seperately, due to peoples personal preferences on spec.

There is n hard & fast rule to values, I would suggest having a nosey around for what they & similar bikes go for secondhand via various bike forums & fleabay

[sjg]

If it's last year or older then take the sort of price that a bike shop would use as a clearance price and go down from there depending on how used it is.

A bike that's had money spent will obviously fetch more - something with recent chain/cassette change, a winter fork/shock service at somewhere like TF, and some new pads (ie. ready to go for the season) will be worth rather more than one that's been run into the ground then left in the shed all winter.

[Sharief]

As a general rule, MBUK used to say:

Half the original price after one year, -10 quid per year thereafter.

[WildCards]

Sharief said:

As a general rule, MBUK used to say:

Half the original price after one year, -10 quid per year thereafter.

I'd go with that, sounds reasonable to me, give or take some depending on condition

[rhinochopig]

Unless it's a Kona, which seem to be sold brand new, end of season, for half price. This, I've never understood as they always seem to get reasonable reviews.

[Pulse]

Sharief said:

As a general rule, MBUK used to say:

Half the original price after one year, -10 quid per year thereafter.

I would agree with that, definitely. Any bike bought brand new will lose half it's value straight away, imo. After that, it doesn't really matter as much.

[Pulse]

rhinochopig said:

Unless it's a Kona, which seem to be sold brand new, end of season, for half price. This, I've never understood as they always seem to get reasonable reviews.

I've never seen any of them sell for half price, but perhaps as I'm looking at the lower end of the market. A £600 Kona Scrap now sells for £400, so 33% off original retail price.