Are you planning to buy a new bike but aren’t too sure about the investment? Do bikes go up in value with time, or do they depreciate? Read on to know more about the value of bikes.
Do bikes hold value? Here’s a question that most bike owners ask or, at the very least, think about before buying a new one. Bikes do tend to hold their value. In some cases, the value might even increase.
Some bike owners may have more specific questions like: do trek bikes hold value? Nowadays, people have been noticing a sharp increase in bike prices which is due to various factors.
But depreciation rates also apply to multiple bikes. Therefore, bike owners and potential buyers need to have a good idea about their bikes’ current and future value before they decide to invest.
So, to learn about prices and how the value of certain types of bikes is affected, please continue reading!
Do Bikes Increase in Value?
Several bikes increase in value at times. You might find a good value for vintage bikes or bikes that have great features. The value of bikes usually depends on the following factors:
- Time of purchase
- Type of bike
- Manufacturer or Brand of the bike
- Condition of the bike
The value of bikes meant for beginners or everyday use does not decrease significantly. You can also increase the value by making a few modifications. But for other types of bikes, the value might not increase.
Do Mountain Bikes Hold Their Value?
Unfortunately, the value of mountain bikes starts to decrease after a year of use. Usually, a mountain bike tends to lose 41% of its value within a year from the date of purchase.
Now, the rate of depreciation does depend on the manufacturer. Mountain bikes from some brands will have a depreciation rate of less than 41%. However, if you buy a mountain bike for $2,500, you are most likely to get only about $1,475 after a year. If you consider the depreciation rates over four years, you will be looking at a value almost 62% less than the original price.
The reason why the value of mountain bikes decreases so sharply is that they are not well-maintained. Since you will be riding your mountain bike on rough terrain, it will likely suffer some damage.
So by the time someone else buys it, the average performance of the bike will be lower than what it was when you purchased it. So it is not going to hold its value, let alone increase it.
Modifications Don’t Add Value
Modifications like wheel changes, one-by transmissions, or shocks usually do not affect the value of these bikes. They are good enhancements and might work when finding a buyer, but the value will not change.
If you want your mountain bike to hold its value, you will have to maintain it better. A mountain bike that is in pristine condition is likely to hold its value. You will be able to sell such a bike for a reasonable price. But it is near impossible for mountain bikes as they are for rough riding.
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How Well Do Bikes Hold Their Value?
Nowadays, new bikes are expensive, so when you invest in one, you will expect it to hold value for at least some time. It is valid to have questions like do road bikes hold value at the time of purchase. Road bikes usually lose about 40% to 60% of their value in the first two years after purchase.
After that, every year, they lose another 10%. The depreciation of bikes usually happens because they are not appropriately maintained or suffer a certain degree of wear and tear. The value of a bike depreciates when you replace most original parts or pay for frequent repairs.
Ideally, bikes hold their value when you do not ride them even for once but continue to maintain them. However, this is not a practical solution. So, check the following points to know when your bike will hold its value.
Bikes that are niche are trendy. They usually have a wide range of designs and are incredibly versatile. Some bikes are even customizable.
For example, steel bikes use mountain bike tires, have specific geometry that allows them to run well on singletrack, and you can customize them to suit your body. These are the bikes that hold their value and depreciate the least.
The frame material of the bike can determine its ability to hold its value. Titanium bikes are the best in this case. They are highly durable and corrosion-resistant. The depreciation is significantly less when compared to bikes that have high-end carbon or steel as the frame material. But if you buy a bike that has a budget-carbon or aluminum frame material, it won’t be able to hold its value.
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Will Bicycle Prices Increase in 2021?
A question that bike owners, especially first-time owners, often ask is whether road bikes hold their value. It is essential to know the answer if you are thinking of buying a bike in 2021. When compared to what bike prices were a decade ago, the cost has increased significantly.
Type Of Bike
The increase in value in 2021 depends on the type of bike. For example, there has been a steady increase in the price of halo bikes or superbikes like the Specialized S-Works Tarmac.
In 2009, you could have bought a Specialized S-Works Tarmac SL2 for about $8,500. The bike would have a Shimano Dura-Ace 7900 groupset.
But if you were to buy a Specialized S-Works Tarmac SL7 Dura-Ace Di2 in 2021, it would cost around $13,000. The value has therefore increased significantly.
The increase depends on various factors. The cost of living and wages have changed in the past decade so that the inflation rates may be applicable.
Make And Model
The increasing value of bikes also depends on the make and model. The same model bike available for $8,000 or $8,500 in 2009 will not be available in 2021. The features might change, and more often than not, they will be much better than the previous types.
For example, the Specialized S-Works Tarmac SL7 Dura-Ace Di2 in 2021 is sturdier, and shifting is much easier due to the disc brakes. Tire clearances have also improved over the past few years, and thus, the bike is much more versatile than it was before. Due to such modifications, manufacturers are currently charging more for the bikes.
In 2021, and the years leading up to the new decade, you will notice an evolution of bikes that are considered entry-level or mid-range. Earlier, entry-level bikes were of minimalist design and without too many features.
However, recent bikes have a design that does not fit in any one type or genre. You can ride some of these bikes on paved roads as well as on streets lined with gravel. So the prices are naturally increasing.
While one can justify the increasing value of bikes in certain aspects, not everybody wants a bike that offers top-of-the-line features. Some people still want affordable bikes that are suitable for running chores or going on short trips.
New Vs. Second Hand
But such bikes are in short supply, and the available ones are too expensive to suit every kind of budget. Therefore, people looking to buy bikes on a tight budget will have to go for second-hand options rather than new ones.
But, those options will not be as cheap as they were a decade ago. So if you are in the market to buy and then sell a bike, you might as well invest in a new model.
Is a Bike a Good Investment?
Before you invest in a bike, you have to consider which type will hold its value. Do trek bikes hold their value? If you buy a trek bike from a good brand, it is likely to hold its value. The value of a trek bike that is in good condition will not depreciate rapidly. For other types of bikes, the value may not hold.
While you can do a few upgrades, they might not have a positive impact on the value. However, there are a few exceptions. Bikes that make use of new-age technology and are more aerodynamic are usually great investments.
You can also invest in upgrading the wheels, suspension, or power meters. These are the only upgrades that improve the resale value as they ensure high performance.
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Yes, Bikes Do Lose Value. The Best Way To Stop It Is By Investing In Quality And Maintenance
So, now you have the answer to the question: “do bikes lose value?,” and you can make a good decision when buying and investing in a new bike. Leave a comment about which bike you wish to purchase, and don’t forget to share this article with others who want to know more about bikes and their values.