Low resale value

[the Ferret]

I'm sure I didn't have that kind of cash at 26 either. If I remember right I had been married for 2 years, had a one year old daughter, was renting an apartment, was working in a motorcycle shop making about $7K a year, we had one old used volkswagon beetle ( it was purple...we called it the grape) and I rode a new Yamaha 650 twin to work everyday it didn't snow, that I bought for about $1200 and financed it lol.

[kvdv_imp]

So glad all you responsible people have $8-10k cash to pay for a bike. I was 26 and did not have that kind of cash on hand. I am not asking advice about paying in cash or to be told I "should have paid cash" you think I'm stupid? Obviously I know that, but either way it's a loss. I was asking for feedback on peoples experience on resale or trade in values.

Diver... you asked for real world, relevant examples; here's mine:
I recently traded in my immaculate 2014 DLX for a brand new Triumph Bonneville Speedmaster. I had purchased the DLX used (had 2000 miles on it) back in Aug 2015 for $9800. By the time I traded it in just over two years later, I had over 25,000 miles on the clock but had also added some spendy upgrades (Road Comet fairing, heated grips, engine guards, luggage rack, etc.) All together, I estimate I had $12,000 into that DLX. I offered it for sale at $7000, then $6000, not a single bite. As a trade in, Triumph told me the best they could do was $4500. Ouch. But boy, did I want that Speedmaster, and I could not afford nor did I have space for two bikes. I swallowed my pride and took the offer, knowing full well that it was not the world's greatest financial move I later saw my old DLX in Craigslist through a different local dealer, priced at around $5k...
So yeah, not my finest moment in terms of wheeling and dealing, but now that the pain and embarrassment has faded some, I'm very glad that I made the move. The DLX was beautiful and an engineering marvel, but I believe I've found the right machine for me at this point in my life, so I'm riding on with no regrets and a big silly smile on my face. As they say, "You can't take it with you..."

[Houtman_imp]

At 26 I did not have the money either to buy a new bike for cash , married , one child and a mortgage.
Therefor I bought a second hand 1975 Ducati 450 single.
Was living in the UK at that time , brought the bike with to the USA in 1985 and sold it 2 years later for $ 2000 and bought anther CBX for that $ 2000.

[LongRanger_imp]

I tried to finance a new R65LS when I turned 23. The dealer couldn't do it, and the bank wouldn't do it. Smart of them. I had a crummy job and not a penny to my name. I never bought it. I did, however, get a speeding ticket during my test ride. That should have told me something!

[reinie_imp]

Trade-in is usually the worst way to go if you want anything close to your price. Dealers low-ball even year old low mileage trade-ins as they buy low and sell high making more profit on used bikes than they do on new ones. Selling outright can be a long drawn-out waiting game unless the right buyer comes along early on. You say you paid $9500 and owe $4000 so would your bottom dollar be around $7500? If so ask $8500 and be able to come down to $7500. Depends upon how much of a margin above $4000 you need and how long you are willing to wait for the right buyer to show up.

[Flytech99_imp]

I think most on this forum would say the CB1100 is an EXCELLENT value on the used market. I doubt you’d get the same number of folks saying the same thing about its value at MSRP.

My point? The perceived low to moderate resale value is just an indication of a market adjustment compensating for an MSRP that overshot low demand for a niche bike.

[cookiemech]

Trade-in is usually the worst way to go if you want anything close to your price. Dealers low-ball even year old low mileage trade-ins as they buy low and sell high making more profit on used bikes than they do on new ones. Selling outright can be a long drawn-out waiting game unless the right buyer comes along early on. You say you paid $9500 and owe $4000 so would your bottom dollar be around $7500? If so ask $8500 and be able to come down to $7500. Depends upon how much of a margin above $4000 you need and how long you are willing to wait for the right buyer to show up.

I'm having a bit of trouble with this math . . . OP stated that he would have a "hard time letting it go for less than $6500"; so that tells me his "bottom dollar" would be $6500. If he paid $9500 and owes $4000, then his apparent or perceived equity in the bike is $5500, which (based on a number of ads "for sale" that I've seen) might just be more than the bike can fetch.

I don't know. It's the beginning of the riding season, but the CB1100 is not exactly on many riders' or potential riders' hot lists. I'd say he's lucky to see $5K, given that some west coast dealers are advertising new ones (which have warranties) for around $6K (plus fees, of course).

[TwoBrothersBusa_imp]

I learned a LONG time ago that you don't know the value of the bike until someone pays you for it. Hope it works out for the OP.

[PowerDubs_imp]

It is worth about what you owe on it. Better than being upside down.

Either accept that and sell, or decide to keep it and ride for many more years.

An in-law family member of mine is a 'keep up with the Jones' kind of person.. they leased a Ford Edge many years ago, the lease ended and they were waay over miles. So they did what many other people do- 'bought it'.

Which means paying waaaay more in the end than the vehicle stickers for new.

Guess what? Now several years after the lease ended well into still making payments on 'buying it' the vehicle came up on some costly repairs- trans, etc- so they just traded it in - while still owing 6k+ on the loan.

Instead of realizing the errors of their ways- they leased a new *much* more expensive car, both in cost and repairs... while rolling the many thousands of the old junker on top of it.

Not my place to say anything to them- but holy cuss! They literally posted a pic of them picking it up on Fbook at the dealer with a big red bow on it.

Umm.. yea- congratulations, ... how is that CC debt going? Not even to mention lack of investments or retirement savings...

Why did they not have the 6+k to pay the remainder instead of rolling it into future interest? Oh- they need things like a new fancy dishwasher, a new (many thousands) refrigerator ..when I could have fixed their old one (which was a perfectly fine stainless unit) for about $120...no, lets put another 4k on a credit card.

The worst question you could ever answer is - "how much can you pay each month?"

Bottom line- society is 100% based on money- taking it from you- everything you drive by is trying to make money off of you- store, gas station, bank, movies, doctor, restaurant, you name it...

Society, commercials on tv, product placements in tv shows, movies, the cable company themselves-

NOBODY cares about you but YOU- they will take your last dollar and not care what happens to you now- or the future.

You are young enough to learn and turn things around- but time goes faaaast too age, but takes a long time to earn enough money to retire comfortably.

If you are not on Reddit- go to Reddit.com and hit the personal finance forum. Lots of info there- and if you don't see it- ask a question. Then hit the FIRE forum there (Financially Independent Retire Early) Use the calculators- see what it takes to retire, see what it costs you to buy crap, see how severely spending costs you, how forever payments take, how little you actually can afford once you see how it all works... uggh.

Not wanting to preach, honestly want to help- but if loosing a few grand on a bike sale is painful- then you shouldn't have committed to roughly 10k (+interest %?)...

Don't get stupid on a 'SUV' purchase like I see everyone doing... even with 2 kids- a base model Kia Soul is more than enough to survive and haul what you need. Your future is more important than the fluff.

[Houtman_imp]

We found it quite easy to get financially comfortable in the USA coming from Europe : work hard 50- 60 hours a week when you are younger , spend less than you make and buy only what you need and not what you want. Put as much money as you can in 401/403/IRA Invest smart ,live below your means and than when you are older you are a lot more secure financially .