[Pjay]

For reasons I won't attempt to explain, I've had two yellow SC1000 biposto bikes for the last year. Over the years I've bought and sold nearly 100 motorcycles, and have never before experienced the depreciation 'hit' that these bikes seem to exact. After 12 months and 2,000 km, I can resell just about any other bike, including a Harley, for about $3,000 less than purchase price.

One bike's been up for sale for 6 months, and the asking price is now $5,000 less than new, but still no interest. Last night I received the first serious offer - $8,000 under new price

When you take into account the fact that the bipo is no longer available, this represents an inordinate amount of depreciation, IMHO

 

[MajorSoftie]

On the one hand, compared to Harleys one would have to expect our bikes to do poorly in a depreciation comparison as Harleys have always been famous for holding their value in the used market better than any other mark.

On the other hand, I have still been very surprised by the amount of depreciation the Sport Classics seem to incur, even before the national/world economy issues. They seem to do poorly even compared to other Ducati models. I can only speculate that there must be too many on the used market, which could be due to confirmed Ducati lovers being disappointed in their handling, non-ducati faithful being lured to their first Ducati by the SC's and then not liking them, or perhaps both.

 

[Pjay]

MajorSoftie, your comments make sense in a North American context. Down Under, we have avoided a technical recession, and consumer confidence remains bouyant. The main website used for selling bikes has only a very small number of Sport Classics available, I could count the '08 bipostos on one hand.

I think that Aussie bike riders are still a bit wary of Ducatis in general due to horror stories about maintenance costs. The message has not got through that maintenance costs are now not significantly more than bikes from Japanese manufacturers.

 

[Bikenigma]

Sorry I got to disagree with you here mate. Harley`s take a dive in resale also! I base this on a friend who worked as a salesman in the Brisbane dealership.

 

[wheelieman]

Even the Paul Smarts go for $5000 less than when they were new but... I think they will really appreciate in value over the next 20 years. Especially since they only made 2000 and due to attrition over the years from bikes being totaled and trashed.

 

[IN2VWS]

IMO, the SC is not a big seller down under. A local dealer here still has new 06 models on the floor.

 

[roggt1000]

Depreciation

Hi Guys,

Hey Pete...you should have taken up my offer ages ago.

Harley-Davidson & depreciation.

I have owned 10 Harleys.

My first FATBOY I traded and got $500 more than I paid for it used....how good is this I thought.
My Road King that I added about $12K in accessories....I lost about $20K on that bike in 2 years.
I bought a new Fatboy 15th anniversary, kept it a year and sold it for $1500 less than I paid for it...did about 10000klms and only modded the pipes....did not spend a cent on accessories.
My last one was a new Ultra in 08....lost $2000 in 6 months.

It depends on the model....if you buy a model that is in high demand ( Fatboy is a perfect example)...and look after it and avoid the trap of blowing thousands on bling then it will hold its value...because dealers do not have any in stock to sell and they move quickly as used bikes.

I lost $5000 on a 9 month old 696 so that's about a third of the RRP on road here in Brisbane.

My friend just traded her GT....2009 silver/grey with 6000klms on it and got $14K as a trade on a M1100S....so that's about $6000 in less than 6 months.

Wanna find out about depreciation....my car cost a touch over $300K new....two years old...10000klms.....I was offered $135K as a trade on a new one...I am guessing Porsche are struggling to sell their cars...so this reflects in the depreciation factor.

Just my .02c and observations.

Cheers Roger

 

[Pjay]

Thanks for the reality check, Roger
I'm glad I'm not selling out of economic necessity, a dealer would offer me less than half new price, wouldn't ever involve a dealer in the sale of a low km bike...
In fact, I'm seriously considering giving this bike to one of my brothers.
My last Harley was a Softail standard, cost $26k and very quickly sold for $23k one year later.
The second SC in my garage is a long term keeper, market prices won't be of any interest once I move the first one on. Funnily enough, I've had no handling issues at all, even on the goat track roads we have here. Not even a hint of a headshake, despite some enthusiastic use in windy country.

 

[dashzero]

HD used

It seems that HD Financial finances bikes for people that can't get financed for a Ducati also.

 

[MajorSoftie]

Yeah, all you DownUnder folk, mine is certainly a NA perspective. I don't doubt that Harley resale value varies tremendously from nation to nation, and here in the States it has the additional nationalism factor to bolster value. I do imagine the Canadian market is similar, if only because the influence of our very large Harley market is right next door.

 

[Jeff_Quan]

I didn't buy my GT for purposes of resale so it's not an issue for me. I did figure that they'd hold their value better though which is why I decided to just buy new. Mine was the first GT in British Columbia (so I'm told by my dealer). I think that there are a few factors here. The overall market for the SC's is pretty limited. You can definitely get way more bike for way less money be it Ducati product or any other product. Let's face it, the SC's are overpriced for what we really get. A monster 1100 is marginally more expensive than an SC1000S and is a way better bike technically. Doesn't have the same character though. That's what we're really paying for here - character. I'm guessing that the resale market doesn't seem to hold as much value for character hence the substantial loss in resale value. Just my guess though. Had I known that resale value would follow the trend it has I would have waited a year and picked one up used for a steal. I can't really complain though. I've had no problems with my bike other than issues that were covered under warranty or recalls and I get awesome service from my dealer partly because I bought it new from them.

 

[VikingDave]

Resale Value or De Value

I have no luck buying or selling motorbikes. Seems when I'm looking to buy the prices are too high, and when I'm selling I can't find a buyer at a decent price. Then again a good friend of mine always finds a great deal on a buy and an even better buyer for one of his bikes. I'm beginning to think it's some kind of "karma". As far as Harley's holding their value, here in the US those days have finally come to a close. I've heard that a third of their dealers have become financially insolvent, and their latest results report an 85% decrease in profits. They allowed too many Dealerships to be built and made way too many bikes. IMHO the sh#%t will really hit the fan next spring/summer. They'll be the next in line for a "stimulus package" from the Socialist States of America. Instead of "too big to fail" it'll be "too bad ass to fail" lol.

The fact of the matter is if the 1%er outlaw biker subculture would have chose Ducati instead of HD, the bad boys from Wisconsin never would have made it out of the 70's.

 

[ducatidoc]

i cant speak for other continents, but i have observed terrible depreciation on all ducatis regardless of class.

i picked up a 2007 gt $4k below msrp with 3k miles on her, and have been trying to sell my low-mileage 749 since that purchasing the gt. i overpaid on my gt as well; the norm seems to be $5500-6500 for bikes with under 7k miles.

sadly, lots of '06 749's are selling at or below $6k with under 4k miles -- this is basically $7k below msrp and $3k below NADA used guide prices. i have also seen 749R's and other gems WELL below $10k, and a boon of 999R's on the market for cheap as well. the 749/999 series is not doing well in resale.

all that being said, i do live in michigan (terrible economy), and winter is upon us, however i never anticipated depreciation this bad.

 

[wheelieman]

Even the desmosedici is getting hit hard. My dealer has one with only 150 miles and the price is 54K. That is a $20,000 hit for a very short ride!

You think the resale is bad on the ducs, you ought to try things like the Ktm superduke or 950 supermoto. Took 6 months to sell me SM and got $6000 for it.

For me now I have learned my lesson and will only buy low milage used bikes so that someone else takes the hit.

 

[ducSculptor]

I'm not sure how Ducati can keep doing what they're doing when there are loads of really nice '06 - '08 sport classics out there with less than 5,000 miles selling for $5,000 less than when they were new.. and many of the "used" bikes have thousand of dollars worth of extras like termis and the DP ECU already on them.

Some of the deals I'm seeing on craigslist on used motorcycles (and cars, and trucks, and tools) of all brands are just stunning. People are being forced to unload unnecessary assets at any price so prices adjust to the market. There just aren't as many people willing to part with cash at the moment. It's a buyers market.

 

[ducSculptor]

For me now I have learned my lesson and will only buy low milage used bikes so that someone else takes the hit.

... you learned that lesson well.. . didn't you get a mint Paul Smart for a song?

 

[Pjay]

Jeff_Quan observed:

I'm guessing that the resale market doesn't seem to hold as much value for character hence the substantial loss in resale value.

You hit the nail on the head! For $8,000 you can buy a low km Jap four that is as reliable as a stone axe, even if lacking in charisma. So, on an objective basis, why on earth would anyone want to fork out double that amount (in Aussies pesos) for a second hand Ducati Sport Classic?

Different folks have different priorities - the ZRX1200R that I sold a few months back was incredibly capable, if somewhat bland. BUT, my SC actually makes my pulse race when I wheel it out before a ride, and that is NOT due to being unfit! You can't really sell that indefinable quality when advertising a used bike, unless the buyer is a fellow Ducatisti.

 

[wheelieman]

Yes DucSculptor,I picked up a Paul Smart on Ebay for $10,000. It only had 280 miles on it.

There was a guy in Beverly Hills last year that offered to sell me one with 350 miles for $9400. I was silly as I procrastinated and missed out.

 

[Duccout]

A dealer in the UK told me years ago that he stopped producing special parts for Guzzi's because the owners were too mean to buy them, but Ducati owners would spend every penny of their cash on bling. This tells me something about Ducati owners - possibly due to the character of Ducati folk, they prefer to buy new?

 

[st2lemans]

A dealer in the UK told me years ago that he stopped producing special parts for Guzzi's because the owners were too mean to buy them, but Ducati owners would spend every penny of their cash on bling. This tells me something about Ducati owners - possibly due to the character of Ducati folk, they prefer to buy new?

I started buying Ducatis as there was nothing left to buy for my Guzzis.

Actually, on of my LeMans was bought new, as were two of my three Ducatis (all of which I currently own). All of my Japanese bikes were used, several given to me for free, still have the XV-250 (was given it 7 years ago and gave it to a friend, was recently given back)

Tom

P.S. Actually, I just bought a set of full-floating cast-iron disks from a Ducati F1 to put on one of my Guzzis! Strange that I have to buy Ducati parts for the Guzzis.