I’ve been traveling around Europe on a motorcycle from early April to the end of August. In 2011, my boyfriend (BF) and I took a similar trip from Guatemala to Seattle, and then to Washington D.C., using his motorcycle. This time, it was my turn to buy a bike and handle the depreciation. We specifically wanted a BMW F650GS, just like the one we had in the U.S., which proved reliable for 20,000 miles. BF’s motorcycle was from 2006, and by the end of that trip, it was valued around $5,000.
Initially, I checked out similar bikes on eBay with 30,000 to 40,000 miles on them, priced between $3,000 and $4,000. My plan was to buy one of these cheaper bikes, learn to maintain it like I did with BF’s bike, and use it for as long as possible. I figured I could buy one for $4,000 and resell it for $2,000 after a few years.
Then I came across an almost new 2010 bike with only 7,000 miles, previously owned by a mechanic’s wife. It was fully equipped with ABS, panniers, a tank bag, a top case, and a Scott Oiler to keep the chain from wearing out. However, it was priced at $10,000, more than double what I had initially planned to spend.
BF was much more enthusiastic about this bike than I was, citing several good reasons:
– With older bikes, we’d likely face more maintenance issues. During our U.S. trip, we had to fix the water pump for about $500, replace the chain for $200, and do extra oil changes costing $100. Altogether, we spent over $800 on these small repairs, which might not be necessary with a newer bike.
– The new bike was still under warranty. So any major issues, like the water pump, would be fixed for free—a significant relief when planning to ride 20,000 miles in four months.
– The luggage that came with the bike was top-notch, with panniers and a top case that cost around $1,500 when new. These were much better than our old ones, which stained our clothes and were difficult to use. We could also resell this high-quality luggage separately if needed.
– It would be easier to resell a bike with only two previous owners and a full service history in contrast to a 10-year-old bike with multiple owners.
Eventually, I agreed to buy the more expensive bike. The seller even added a couple of helmets and an iPhone charger as extras.
After riding this fantastic bike for 20,000 miles without a single problem, I see that I actually saved money. Here’s why:
– We avoided the $800 emergency repairs we faced with the older bike. Even though BF took great care of his old bike, you never know how well a bike with 40,000 miles has been maintained.
– The new bike had better fuel efficiency. We used approximately 300 gallons of gas for 20,000 miles, compared to 375 gallons with the old bike, saving about $500.
– Maintenance was kept to a minimum. We only had to change the tires once and the oil three times. Because of the chain oiler, we didn’t have to replace the chain or sprockets, saving more money.
In terms of resale value, I could probably sell this bike today for only $1,500 less than what I bought it for, despite it having 20,000 more miles. By comparison, a 40,000-mile bike bought for $4,000 would likely resell for $2,500 at 60,000 miles.
In summary, the $1,400 or more I saved by choosing the newer bike offsets the $1,500 I might lose in resale. And now that I absolutely love my bike, I’m glad to keep such a reliable one.
Have you ever chosen to buy something at a premium because of its long lifespan and reliability?