Depreciation

[Ollie]

I'm trying to figure out what percent of the S10 I want the bank to own and how long I want them to own it. Anyone have any thoughts on yearly depreciation on the S10? Assuming, of course, that it's been meticulously cared for, with average mileage.

 

[HoebSTer]

I would ahve to say the depreciation for an Adventure Bike is quicker than a SPort-Touring bike like an ST1300. ST1100's dating back to 1991 with 50k plus mileage are still bringing $3000 range. My 07 DL 1000 VSTROM i just sold wtih 15k miles brought $4600 plus accessories. I paid with accessories in June 2008 $9500 or so for everything. I don't know if this is some of the infor you are looking for or not.

 

[markjenn]

I'd expect more or less "average" depreciation. If you just want ballpark numbers, you can assume 20% the first year, 15% the second, 10% the third, and 5% per year for subsequent. Rule of thumb for 4-5 year loans is that you are almost never underwater with 25% down, but are almost certain to be with 10% down.

- Mark

 

[Ollie]

Hoebster,

Anecdotal info like that is helpful, but I was looking for more of a general statement. Maybe this is one of those things you just can generalize. I've kind of figured out depreciation with other bikes that have been on the market for several years, by just going to Kelly Blue Book and changing the age of the bike incrementally and looked at the corresponding price. I kind of looking for a guestimate, like $2000 less per year, or whatever. Maybe there's no way to really know.

 

[Ollie]

I'd expect more or less "average" depreciation. If you just want ballpark numbers, you can assume 20% the first year, 15% the second, 10% the third, and 5% per year for subsequent.

- Mark

That's what I was looking for. Thanks!

 

[markjenn]

Anecdotal info like that is helpful, but I was looking for more of a general statement. Maybe this is one of those things you just can generalize. I've kind of figured out depreciation with other bikes that have been on the market for several years, by just going to Kelly Blue Book and changing the age of the bike incrementally and looked at the corresponding price. I kind of looking for a guestimate, like $2000 less per year, or whatever. Maybe there's no way to really know.

There's no way to know precisely as too many factors are at work, but the average numbers can be computed as you suggest, or just by using the numbers I gave you which aren't going to be very far off the averages. It's silly to try and put too fine a point on it.

- Mark

 

[Ollie]

True. I'm just trying to make sure I'll have enough set aside by may/june so that I don't end up upside down on the amount I finance versus what the S10 is valued at. That happened to me with my boat and toward the end it was kind of a bummer when I owed more that what the boat was worth.

 

[HoebSTer]

my comment were more of a differentiation of models more than base line numbers is all. If we took an average say on cars, Honda cars rank way up there in resale, where a chevy would bring below the average. Just saying!! Mark you are right on about this.

 

[Swagger]

It may be worth keeping in mind what second hand values are doing. In the UK the Japanese bike manufacturers prices have escalated disproportionately to all others. Second hand bikes dissapeared as the European market consumed them with avarice.

My experience was that I bought an 09 FZ1 put 12,000miles on it and sold it for what I paid. Exactly the same with an 08 TDM900. Bought a second hand ST1300 rode it through a whole winter put 5,000miles on it ... sold it for £100 more than I paid. Crazy times.

In the UK there will be another price hike plus an increase in VAT. I suspect that the price increase (not necessarily the tax) will also come the way of the US.