BURGMAN King of Depreciation

[burged]

I own my second Burgman 650 (2009) and I got tired of the squeaking brakes, and having the regulator/rectifier leave me without lights, engine or anything on the interstate at 10:00 p.m. At 65 years of age, one wants a little dependability. Then add insult to (near) injury, I try to trade it and with less than 2K miles, no scratches, or flaws. (It has never spent a night outside of a locked garage), I find out that the thing is only worth $4275 on trade in. It is still in warranty for 3 more months, and it has depreciated over $4,000.00 That is darn near 60% depreciation in 9 months (only 6 months of riding). You have to be kidding!

[TheDarkCutlass]

Welcome to the wonderful world of motorcycles, nearly all motorcycles depreciate ALOT once owned. Just for grins I looked up a couple different ones. And guess what? The "other scooter" has nearly the same rate of depreciation.

2009 GSX1300 Hayabusa - MSRP $13,199 - Trade In - $6,897
2009 Ninja ZX-6R - MSRP $9,999 - Trade in - $6,210
2009 Gold Wing - MSRP $20,999 - Trade in - $12,600
2009 T-Max - MSRP $7,999 - Trade in $3,930

[roy_ryall]

+1

For the last 2-3 years new motorcycle prices have raising and used motorcycle values have been dropping. Looking at what sellers of used bikes are asking for their bikes, a lot of them have not looked up the book values of their bikes.

[darcym]

As with all things, it's only worth what someone else is willing to pay for it. With the downturn in the economy, many consider motorcycles to be "toys" or playthings, therefore something that they can only purchase with disposable income.

If it's worth more to you than what someone else is willing to pay for it, then keep it. Motorcycles are rarely if ever an "investment".

When I traded my 2006 BMW, a model known for holding onto their value, I only got around $9000 for it. I'd paid around $16 for it in 2008 as a used bike. The dealer is selling it right now for $13. I knew I would take a hit on the trade, but I paid for the convenience of not having to sell it myself.

[Daboo]

Trade-in value always is much much lower than you'd expect. It is the amount that gives the dealership a profit margin when they resell it. If you sell it privately, you'd get closer to the Retail value.

Chris

[rtAnimal]

I'd fix the squeaky brakes with some this http://www.amazon.com/gp/aw/d.html/ref= ... B000HBGH3G or this http://www.amazon.com/gp/aw/d.html/ref= ... B001REZ5TY . Then I would install an aftermarket regulator/rectifier that has a larger heat sink and better diodes. That would take care of your squealing problem and your charging problem.

That would be better than taking a hit in the pocket book. With the economy the way it is and a backlog of new unsold scooters/motorcycles it will be a while before the prices come up on used machines.

Good Luck with your choice!
rtÅnïmal

[Chet_Benson]

The 650 i owned was a 2006 that i paid $4500 for, the amount the guy would have gotten if he traded it in. It had 18,000 miles and was in excellent condition. I sold it for $4200.

So I gave a person a good deal and only lost a few dollars.

In my opinion a person that buys a scooter on credit and decides to sell it is going to get hit hard. HE buys a $10,000 item and in the long run (5 years) it cost maybe $15,000 and you can trade it in for what $5000 on a good day.

That hurts.

This sound like a good idea and you would have great scooter.

I'd fix the squeaky brakes with some this http://www.amazon.com/gp/aw/d.html/ref= ... B000HBGH3G or this http://www.amazon.com/gp/aw/d.html/ref= ... B001REZ5TY . Then I would install an aftermarket regulator/rectifier that has a larger heat sink and better diodes. That would take care of your squealing problem and your charging problem.

[QuantumRift]

Never depend on a "TRADE-IN" to get you value or $$$. The Dealer is in BUSINESS to make money. To make money on each vehicle, they 'buy' low and SELL high. If there's no market for used scoots (because gas prices are fairly low and stable), then they'll have money tied up in it as it sits on the lot waiting to be sold. They can always dicker but in the end, the dealer will make money on it.

The market is the market. If the demand is there and the supply is LOW, the price will be high. And vice versa.

You cannot walk in to a dealer and demand a 'trade-in' price that reflects what you could sell it on the street as a private owner. Once a vehicle is licensed, it's USED and there's no getting around it.

You have several prices to deal with...the RETAIL value of it if you were selling it as a private owner, the retail dealer price that they list it for to sell on the lot, the "blue book" value, the wholesale price, and auction prices... that's exactly why you should do the two transactions separately...negotiate the best purchase price for the new (or used vehicle) FIRST with no consideration you existing vehicle. Only THEN you negotiate the 'trade in' value, and if you let them roll it into one transaction, you are doing yourself a disservice. Sell your existing vehicle as a private seller, and certainly do not roll any loan balance onto the new vehicle. They may try to tell you "well, the trade-in value of your vehicle will have a direct bearing on the price for the new vehicle.." That's a load of BS, designed to squeeze you. Price is price and they know what the bike or car costs them (and you don't unless you've done some extensive homework)....they can get bonuses or holdbacks, etc and that's what affects the price. The dealer will always try to maximize that profit spread....

I picked up my 2006 650 at the end of June two years ago...at that time, gasoline here was $4/gallon. The bike had 1270 miles on it, and the dealer wanted $5600.00 for it. So at that time, the bike was 2 yrs old, and it was absolutely pristine.. I don''t know what the retail price of my 06 650 was at the time it was new, but I walked out of the Honda shop paying $5000 and some change for it, and was told that the former owner had 'traded' it for a Quad....so I can bet they paid substantially less than $5K for it and still made out to have it on their lot for less than a week...

[Terry Dill]

My Good Friend bought a 2009 Exec in Nov 08 and paid just at $9000 out the door. 6 months later he wanted to trade it in and they would only give him $6000 and that was after a week of negotiating it upwards. So, he sold it to me for $6000 with only 3000 miles on it. I love the bike and what it can do and ease of driving it. But, I worry about dependability.

[QuantumRift]

If you take care of it, it'll take care of you.

[JCross317]

This is why I never buy vehicles "brand new" - off the floor. You are going to pay through the nose for that "new smell" and "sticker" on the window (or the handlebar)! Even with an automobile, you drive a brand new one off the lot and $2000 has just gone out the window. And I'm sure with motorcycles, it is worse. There are tons of people out there who think that they want to take up motorcycle riding and 500 miles later, it's in the garage for good. If you are willing to look around it is definitely a buyers market. Tons of bikes out there hardly broke in and you can get them for a fantastic price.

I bought my '06 Burgman 400 with 3300 miles on it in November '06 for $3500 after the guy I bought it from purchased it brand new in April the same year and he had greater than $10K financed through Suzuki. Now it has more than 40K miles on it. Just the way it goes for the prudent and informed buyer.

You can hardly label the "Burgman" a heavier depreciative bike than any other bike or vehicle..as it has already been amply stated by the several contributions to this topic. It is just the nature of the "beast"..you buy new, you are going to pay the price.

[Scooter Mama]

The flip side is you don't end up with a machine that someone raced the heck out of it and otherwise abused.

[billmeek]

"Otherwise abused" .... You must have seen my Burgman.

[JCross317]

The flip side is you don't end up with a machine that someone raced the heck out of it and otherwise abused.

A true statement, indeed. However, the demographic of people who own a Burgman is going prove to be a very low probability of buying a "Burgman" that somebody has "raced the heck" out it. If, on the other hand, if it were a "crotch rocket"...then you might have a weighter point.

[ABQ]

Depreciation is dependent on your agreement to trade it to the dealer for that lower price.
Set you own price. Stick to it. Walk out the door. Sell it yourself at your price.

[burgienme]

If you are close to Florida I would give you $4500 if it is white.

[dalehazelton]

I know this is an old thread, but my dealer told me part of his problem is that he has to follow the KBB or NADA values because the banks do. If he has a used vehicle to sell and a customer comes in who doesn't have cash, he sends them to the local credit union to apply for a loan. The credit union won't give someone a $5,000 loan for a bike that KBB or NADA says is only worth $4,000, despite mileage, condition or accessories. I've always pulled off saddlebag supports, aftermarket windscreens, sissy bars, etc and sold those things on ebay when I traded a bike. Better to get something for them than nothing.

[Chet_Benson]

I would think the Burgman held its value it is still worth $6000 by the KBB if you take the time and work to sell it yourself. The dealer is in business working to make money.

[Gio]

1st hit depreciation is always heavy in the UK too, be it a car or motorcycle but come the 2nd and subsequent owners the depreciation really slows and even stops especially since the current economic climate has hit families and fuel is now £1.35 per litre. Over here the Burgman -especially the 400- is a strong commuter bike because as we all know it offers weather protection, is nimble and easy to ride in congested areas etc. In areas such as London, demand is high and so prices tend to remain high. Me on the other hand live in Scotland where the population is not that great, commuting is not quite so bad as down south and hence the Burgman is quite a rarity and still does not have a proper association. e.g. it is not seen as a true scooter (Vespa, Lambretta) and it is not seen as a mainstream motorcycle. Hence prices are low for me which if buying 2nd hand is ideal because you get a very good machine for a good price.

The lesson I think is to buy second hand and try to pick up a bargain. Yes it is very nice to have a brand new machine but you get stung with high service costs (to maintain a warranty), higher insurance etc. Get a good 2nd hand model and you have a bike you can ride to enjoy as well as the new machine for a fraction of the price, you can service it yourself and sell it for the price you bought it for, even if sold in pieces. My old 2000 Y model still often fetch £1000 plus on eBay.

Seeing how good the climate is in many of your ‘states’ and the lengths people go to protect your bikes over the winter periods, I am very envious because the quality of 2nd hand purchases must be fantastic.

[J2H]

I don't know what the 07s cost new in 07, but I got mine on the 19th for 1200

[dalehazelton]

The reason dealers only give you KBB or NADA book trade in value, despite mileage or condition, is because banks use the same guidelines when giving someone a loan to purchase that used bike. The bank doesn't give a darn if the bike is bone stock or has $1,500 worth of farkles and zero mileage, they see the blue book value as the most they can loan. Who makes up these values is beyond me, though. They seem pretty unrealistic.

You can ask your dealer if they will sell it on consignment. My dealer takes around 10%, so it's in their interest to ask a high price. You can say no if you want, it's your bike. Just make sure you hold onto the title until the deal is acceptable to you. But be realistic based on the blue book values. And I've pulled accessories off and eBayed them in the past. Better to get half what you paid for add ons than give them away.

[Corvetteowner]

The lesson is... NEVER buy any bike new... Take your time-- a year or so, and watch craigslist and ebay for a low mileage used unit... I made the mistake of buying an $8000 sportbike and 2 1/2 years later it is worth half of what I paid for it.... NEVER AGAIN!!! Bought my '06 Burgman 650 with 4800 miles on it.. With farkles and tax the orig owner paid over $8000--- I got it for $4100 and it is mint....

[Scotty1981]

I bought mine new but only because Suzuki is currently offering 0% interest which takes alot of the sting out of the first owner depreciation

[NormanB]

It may be different where you live but here cash is king and determination will usually see the wad persuading the dealer to part with new metal for well below sticker price. However any tempting finance deal is always at sticker price so no matter what the % you are quoted the real price of credit is the foregone cash discount. So if you are going to buy new (and I would not recommend that) pay cash and get the maximum discount.

The best way to reduce depreciation is to buy a fairly new pre loved from someone off BUSA as we are all great guys.

[Noth]

And that is exactly why I bought my new Burgman 650...

Huh?

I traded my 2009 MP3 with 6200 miles on it in 2 seasons.. I paid $8200 for it including a top box and a windshield as options.. I test rode the Burg 650 & assumed that I would get killed on trade.. I didn't.. The Suzuki dealer offered me $6,000 for my Piaggio.. so I grabbed it.. I would rather have a Burgman than a Piaggio is all..