Cost of Used vs New Query | GTAMotorcycle.com

Cost of Used vs New Query

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Alexander Cameron

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Hello All,

I am looking at purchasing a bike in the near future/next season and have been watching the used ads here as well as other places like Kijiji.

I am curious about pricing. As an example, I saw a few 2018 Honda Rebel 500 ABS bikes posted on Kijiji for around 6-$6500. Granted they are very low kms (<3000) but currently through Honda, one can purchase a brand new one for $6500. Are sellers trying to recoup their HST payments that will invariably be paid upon registration or are bikes truly worth that much and holding their value? I am just curious as I wanted to get some insight before potentially negotiating and want to be savvy as well as informed and respectful.

Any information is welcome!
 
Many used bike prices are set at the amount remaining on their loan. They include tax, accessories and interest and try to get their money back. This is nuts (you owe tax again so at the very least that needed to be removed, not to mention depreciation as well as most accessories have zero value on the used market). Personally, if a used bike was within ~15% of a new bike price, I would probably not even consider it as you can get low rate financing, warranty and the knowledge that nobody has abused it yet.

Keep an eye on the reasonably priced motorcycle thread and be ready to pounce. They normally sell in hours.

I'm not intimately familiar with the 500 market, but if you can get a new one from Honda for 6500 all in, I would be expecting low mileage used sales (as opposed to just ones hanging out with crazy asking prices) to be ~$4500 or less(6500-13% tax -20% depreciation).

EDIT:
As it appears that 6500 all in for a new one is quite unlikely and the real all in price is likely 7500 to 8000, my used estimate needs to be revised to ~$5500 (8000-13%-20%) which is in line with other estimates below.
 
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Off season sale prices of previous year models brings the resale values down, but some people possibly who bought at full prices seem oblivious to that reality, has been that way for many years now.
 
And much depends on demand. Short supply means pricing can remain high in the new and used market. Even in the off season.

Patience is your friend. Track ad prices, time listed and keep in mind many list used bikes higher expecting low ball offers.




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Alexander Cameron said:
Hello All,

I am looking at purchasing a bike in the near future/next season and have been watching the used ads here as well as other places like Kijiji.

I am curious about pricing. As an example, I saw a few 2018 Honda Rebel 500 ABS bikes posted on Kijiji for around 6-$6500. Granted they are very low kms (<3000) but currently through Honda, one can purchase a brand new one for $6500. Are sellers trying to recoup their HST payments that will invariably be paid upon registration or are bikes truly worth that much and holding their value? I am just curious as I wanted to get some insight before potentially negotiating and want to be savvy as well as informed and respectful.

Any information is welcome!
Click to expand...
I doubt you can get one new for less than $7700 + tax and licence thru a Honda dealer. Sometimes smalltown dealers will try to cheat by not including the cost of freight in their Kijiji and Autotrader listings. (Tip: If they have the bike in stock, take a copy of the ad and demand the advertised price -- they have to give it to you).

A realistic price for a used 2019 Rebel 500 ABS with 2K or less is <$6500.
 
Special Offer <- 2018 Honda 500cc Rebel $6599, represents a 500$ discount off list promotion straight from Honda Canada, has nothing to do with a dealership it's a distributor discount and happens regularly. Prices typically drop 500, 1000, 1500 sometimes more for more expensive models that they are trying to bail on and this isn't even the off season yet.

... that includes a full manufacturer new bike warranty, the kijiji used bike deals don't.
 
@Trials add freight and pdi to that. Honda website has it listed at $570 so your at $7169 before tax.

A used 2018 with under 3000km probably should sell somewhere around $5700 give or take a couple hundred.
 
I posted that only because that's the site address to watch for the Honda factory deals to be found on, has been for a long time, that discount will increase the longer they have too much inventory of a particular model.
 
Trials said:
I posted that only because that's the site address to watch for the Honda factory deals to be found on, has been for a long time, that discount will increase the longer they have too much inventory of a particular model.
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Never trust Honda with non-current models -- they routinely offer big discounts on non-current models that have long been sold out. I didn't check but I'll guess you won't find an Ontario dealer with a 2018 Rebel. Honda does this to get riders into the dealerships hoping yoll buy what's on the floor.
 
GreyGhost said:
Many used bike prices are set at the amount remaining on their loan. They include tax, accessories and interest and try to get their money back. This is nuts (you owe tax again so at the very least that needed to be removed, not to mention depreciation as well as most accessories have zero value on the used market). Personally, if a used bike was within ~15% of a new bike price, I would probably not even consider it as you can get low rate financing, warranty and the knowledge that nobody has abused it yet.

Keep an eye on the reasonably priced motorcycle thread and be ready to pounce. They normally sell in hours.

I'm not intimately familiar with the 500 market, but if you can get a new one from Honda for 6500 all in, I would be expecting low mileage used sales (as opposed to just ones hanging out with crazy asking prices) to be ~$4500 or less(6500-13% tax -20% depreciation).
Click to expand...


Super helpful! It was just something I was unsure about so this is great!
 
Thanks everyone for your input and insight. I am in complete agreement with the posts that mention tax and freight etc. So when looking at the used ads vs the new ads and removing tax (as it is a wash) then the sticker price of the used ad vs the new ad is what I am looking at and was curious about what to expect/negotiate with regard to depreciation amount. Couple that with the fact that one would have no idea what the person did to/with the bike in the time they rode it as well. I am a fan of not buying brand new in most cases, and these replies have been really helpful.
 
Trials said:
Off season sale prices of previous year models brings the resale values down, but some people possibly who bought at full prices seem oblivious to that reality, has been that way for many years now.
Click to expand...
Yup... peeps want a New ride, then sell it a couple of years later, but don't want to take the 'Depreciation' hit. The private seller needs to be 'Realistic' about what their bike is worth. They need to set a price point a few (or more) K lower than what the buyer can get it for as NOS. That is just common sense.... of which some peeps don't have alot of, if any.
 
With multi owners you have the possible multiplication factor of dumb, but its pretty easy to suss out the last guy. If i meet a guy that has his hat locked on sideways, chain drive wallet, wifebeater T and can't finish a sentence, well that sorts that for me...
 
I bought a 2009 Ducati Hypermotard 1100S from my local dealer that was a demonstrater in the Ducati Canada fleet. The bike was used for street demos and at Mosport demo days. The tires were shredded but i know that the bike was serviced properly.
Because most of the riders that were on it, were experienced track people with proper leathers, i wasn't concerned with fart seepage. Besides...i ended up putting a DP comfort seat on it.
There are a lot scarier things than farts out there!
 
A lot of the prices you see are just 'wish' level of pricing. People know they're going to be beat up by Kijijidiots so they pump up the price and then allow themselves room to go up.
I'm considering selling my 2017 Rebel 500 (4500km) but not sure where to price it yet but thinking of starting at $6k. I get it then I get it, if not then I wait until the spring. Not much to lose really.
The dealer pricing you see doesn't include the Freight and PDI and after tax and all that fun stuff (like Admin fees) you are closer to 8k all in. You can see a few Rebel 500 priced in the 8k range...those are guys trying to recoup all of their money and then some.
 
mimico_polak said:
A lot of the prices you see are just 'wish' level of pricing. People know they're going to be beat up by Kijijidiots so they pump up the price and then allow themselves room to go up.
I'm considering selling my 2017 Rebel 500 (4500km) but not sure where to price it yet but thinking of starting at $6k. I get it then I get it, if not then I wait until the spring. Not much to lose really.
The dealer pricing you see doesn't include the Freight and PDI and after tax and all that fun stuff (like Admin fees) you are closer to 8k all in. You can see a few Rebel 500 priced in the 8k range...those are guys trying to recoup all of their money and then some.
Click to expand...

Thanks for the reply on this. It is an interesting market and with the prices being lower, the percentages around depreciation often are the same percentage, but look like less (10% of a 30,000 dollar vehicle vs 10% of an 8,000 vehicle). It also seems that some bikes just really do well in holding their value as well.

I also agree on the freight and PDI costs as well, and that was part of my curiosity of posting. That is the cost of buying new, maybe? and then where should a buyer take on those costs vs the seller absorb those costs of buying new.

Understanding all those costs of buying new and the all in price vs the base price is where I was driving at, if the 'bike' price new is x,000, then where should the used 'bike' price start taking all of the other elements into consideration (I am not interested in paying the tax for the original buyer and then paying tax a second time, for example haha).

Thanks again! Your bike is a model that I am seriously looking for/at for sure.

What do people feel is typical yearly 'depreciation' as a percentage when considering offers?
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