Welcome back to the All Riders monthly newsletter brought to you straight from the Matt Cave!
This is "4M: The Matt Cave Moto Monthly Mailer".
This just in: The USED MOTORCYCLE MARKET IS ON FIRE!
Haven't you heard? The used bike market is smokin' like it never was these days. It wasn't long ago that a buddy of mine and fellow All Rider was boasting about how the "bottom had dropped out" of the used bike market. Just a couple of years ago, he was enthralled by how cheap used bikes were, and he used the opportunity to pick a couple of things up fo' cheap. He wound up with (amongst other things) a beautiful barely used yellow Honda Valkyrie, which he picked up for a song-just a few thousand dollars.
Well, say it ain't so, but that ain't the case any longer. Now, used bikes are going for MORE than they did a year ago! You heard me right. Since when in history has a used vehicle been worth more a year later than it was the previous year? NOW. I'm pretty sure only now. Maybe there was some other time in history when the Twilight Zone hit home, but never in my lucid lifetime. I was sitting around reading about the lit motorcycle market when I decided to do a little research. I often buy and sell motorcycles, so I typically go onto the Kelly Blue Book and NADA (National Automobile Dealers Association) websites to check used values around whenever I get the itch to sell a bike (since they are the authorities). I often screenshot the listings with my phone to create "for sale" listings using that information as a guideline. So, I figured I might have at least one or two of them in my photo album from when I was selling bikes around a year ago. Then, I thought, I'd compare that to today's value. This way, we can get an idea of how things have changed over a year.
Now, if you "wheel and deal" in motorcycles at all, or any used vehicle, you'll know that it does not take long for your prized procession to plummet in value. Of course, as soon as you sign the papers to take ownership, you typically lose 5% of its value. Then, you roll the pretty girl of the showroom floor and you are down an average 12%. By the time the first two years are in the rearview, depending on the make and model, you could be down 19%-27%!
Motorcycle depreciation slows down at year three and then again around year 10. Years 1 and 2 take the biggest hit, and then depreciation averages about 5% per year for years 3-10. This is calculated based on the average depreciation of the 30 highest selling motorcycles in the United States over a span of 10 years.
A motorcycle's depreciation will usually level off around 10 years old, and the value of it somewhat plateaus with the motorcycle only losing an average of 2%-3% of it's value after 10 years.
Have you ever heard of a "Re-Preciating" motorcycle? No? Me neither.
Well, Like I said, I looked through my photo album, and finally, I found a screenshot of a composite that I made of both the Kelly Blue Book values and the NADA values of a 2017 KTM 1290 GT. Kelly Blue Book lists both the Trade-in Value and the Typical Listing Price of the motorcycle. KBB describes them as:
Trade-in Value: The amount you can expect to receive when trading a car (or motorcycle) in at a dealership.
Typical Listing Price: Formerly known as Suggested Retail Price, the Kelley Blue Book Typical Listing Price is representative of dealers' asking prices. It assumes that the vehicle has been fully reconditioned and has a clean title history.
NADA lists Suggested List Price, Low Retail, and Average Retail prices. NADA describes them as:
Suggested List Price: The value listed reflects the approximate price of the unit when it is brand new. The prices listed are furnished by the manufacturer and are assumed to be correct. The list price does not include freight charges.
Low Retail: A low retail unit may have extensive wear and tear. Body parts may have dents and blemishes. The buyer can expect to invest in cosmetic and/or mechanical work. This vehicle should be in safe running order. Low retail vehicles usually are not found on dealer lots. Low Retail is not a trade-in value.
Average Retail: An average retail vehicle should be clean and without glaring defects. The tires and glass should be in good condition. The paint should match and have a good finish. The interior should have wear in relation to the age of the vehicle. Carpet and seat upholstery should be clean, and all power options should work. The mileage should be within the acceptable range for the model year. An average Retail vehicle on a dealer lot may include a limited warranty or guarantee, and possibly a current safety and/or emission inspection (where applicable).
So, I had this screenshot composite in my photo album from 9/15/20:
Note everything in Hot Pink
Then, I looked up the same 2017 KTM 1290 GT to see its value today: 11/5/21. Over a year later. This is what I found:
Now, take a look at everything in Purple. While the Kelly Blue Book values are close, the bike is still now around $300 more valuable a year later ( it is now a year older) . But Wait-Look at the NADA values. The suggested List remains the same because that is the original listing price of the motorcycle. However, Low Retail and Average Retail are up $1,720 and $2,265, respectively! An older bike is worth $2,000 more! Holy smokes!
Is this blowing your mind, or what? So, what gives?
Well, it's that gosh-darn Pandemic, man. It turns out that prices on outdoor recreation items, not just motorcycles, but kayaks, bicycles, RVs, and jet skis as well have shot up, partially because many other recreational outlets had been closed for the Pandemic. Additionally, adventure and dual-sport motorcycles are particularly popular right now. The way they enable you to leave the road and get further into nature and away from everyone else is something people seem to be craving since COVID hit, and even the road itself via motorcycle appears to be a pretty popular choice.
Let's face it, riding is a COVID-friendly activity that can be done while social distancing (sort of), so it's attracting more new and returning riders. Also, COVID-19 has caused many people to "re-evaluate" their lives and life choices. Think "The Great Resignation". People realize that life is short, so many want to do what they have always wanted to do. For many, motorcycle riding is one of those things. How many times have you seen someone with that wanting gleam in their eye, pining over their lost youth and the missed opportunity to ride a motorcycle?-This while lusting after your ride at a gas station or outside of a party that you rolled up on. These things increase the demand for motorcycles.
Add to that supply chains (Semiconductors, magnesium, pretty much everything it seems), logistics, employees resignations, ect have all been the work of COVID-19, creating a shortage of New bikes-thus limiting supply.
So, dealers have limited inventory, and this pushes buyers to shop elsewhere. This high demand has also eliminated negotiating, so pricing buyers out and into the used market. More demand for used products drives the prices up.
Not to mention, so many people were cooped up for so long in places unlike Florida, so they saved their vacation money, weren't spending on dining out, and then they got some government stimulus money. So, now more people can afford bikes, further limiting supply. Again, class, limited supply equals higher demand. What does higher demand mean for prices, Jimmy? That's right, son... they go up.
Lastly, as prices shoot up, many bikers who never considered selling are now listing bikes at highly inflated prices. This influx of ads only adds fuel to the spiral, leading others to list at even higher prices.
So, as much as that sucks if you are in the market for a new bike, our friends are doing a happy dance on the other side of the coin. This is good news for owners of motorcycles and other outdoor recreation items that may be a bit hard up for cash because of the Pandemic or otherwise.
If you have to sell your bike, now is a good time to do it. Demand is up, and you'll get more money for your ride. So, hey- post er up!
What's Happening in November?
1) Second Fridays Moto-Meetup: First Fridays goes the way of the Dodo this month in exchange for the Second Friday of the month, 11/12/21 with a return to our new "usual" First Friday locale: Mellow Mushroom in Port Orange. 5790 Journey's End Way, Port Orange, FL 32127. Funky, art-filled chain pizzeria featuring craft beer, calzones & creative stone-baked pizzas. 7:00pm. We will return to your regularly scheduled First Fridays in December.
2) 11/14/21:
Dan's 2nd Sunday Sunrise Scoot:
The debut of Dan Soucy's monthly Sunday breakfast ride. Dan says:
You have asked for it and so it shall be. Announcing the inaugural running of Dan's "2nd Sunday Sunrise Scoot." This one is for all the early risers and breakfast fans. This month we will meet at the Shell station in Deltona at 2885 Howland Blvd, 32725 at 6:15 am with KSU at 6:30 am. This will allow us to leave at dawn and ride east into the sunrise towards our breakfast destination at Beacon Restaurant in New Smyrna Beach. After we stuff ourselves and go into a semi-coma, we will head south and visit the manatee observation deck in the Merritt Island Wildlife Refuge. From there, we will make our way across Maytown Rd into Osteen and end the ride at the Shell station on the corner of SR-415 & Doyle Rd. I hope you can join me in greeting the new day from the perch of our scoots.
Dan's "2nd Sunday Sunrise Scoot"...It's Better than Coffee and Won't Make You Pee...
3)Third Thursday Moto-Meetup: Thursday, November 18th. As always, Third Thursdays Bike Night will be at Abbey Bar & Odd Elixir downtown Deland. Amazing staff, great beer, wine, mead, and some finger food to boot. We start at 7:00 pm.
You also get 10% off of your entire bill with your current ARMD membership card.
Check out Abbey Bar:
4) 11/19/21:
Dan's Full Moon Ride: November Edition
Dan Soucy continues his attack on November with this month's edition of the Full Moon Ride. Dan Says:
This month's FMR will will meet at the gas station at the Deland traffic circle on the intersection of Grand Ave and SR-44. we will meet up at 6:15 pm with KSU at 6:30 pm. This month's edition will take us on a beautiful 1 hour ride to Mt. Dora for some treats at Scoops on 5th. We will then take an 80 minute curiously circuitous route to the Kangaroo Express (Shell Station) at the intersection of 17-92 & Dirkson Rd. in DeBary to end the night. I hope you can join us for another adventurous night of Dan's FMR...where all the cool kid's go...
5) 11/20/21:
Chuck Boehm doesn't want Dan having all the fun this Month. So, we continue this November's epic long weekend (From Thursday's Moto-Meetup to Friday's Full Moon Ride, to this ride on Sunday).
This is the All Riders Veterans Ride organized by Chuck "Magnum" Boehm. It was designed to honor all veterans, especially those who will ride with us. If you plan to attend this ride and you are an honorably discharged veteran of the Army, Navy, Air Force, Marine Corps, or Coast Guard, hopefully you completed the Veterans Day Ride Shirt Form so that All Riders may honor you with a free commemorative All Riders t-shirt. If not, oh well... there's always next year.
Meet Time: 9:00am KSU: 9:30am sharp Return Time: Back to DeLand at about 2:15pm Seat Time: 2h 13m (88.6 miles) Ride Type: 5 – 10+ over speed limit, Rain or Shine Event
About the Ride We will ride to Leesburg to visit Veterans Memorial Park, our first stop. From there, we will head to Sonny’s BBQ for lunch. This is where the ride officially ends, however, we do have a route back to DeLand for anyone who wants to ride together. Harley Ride Planner Route Links Leg A: https://maps.harley-davidson.com/share/rides/cNcnzdFtW Leg B: https://maps.harley-davidson.com/share/rides/lNaqfzg5o Leg C: https://maps.harley-davidson.com/share/rides/4NlQHVxpI
6) Chuck's Wednesday Ride to Nowhere is OVER! NO MORE WEDNESDAY RIDES UNTIL MARCH! The famous weekday evening ride hosted by the 'Route Master" Chuck "Magnum" Boehm has ended for the season. Chuck returns to Wednesdays in March, so keep your eyes open for more info.
Follow the link above for t-shirts, patches, membership cards, and work shirts.
I made my Youtube debut in M Squared: Angel Gonzalez and I installed the Kawasaki brand carbon fiber nose cowl on the H2, and describe how well it fit up. There is also a comparison to the Motocomposites brand carbon fiber nose cowl. I realize that the H2 is pretty "niche", so it may not interest you. There will be more M Squared's that will apply to more broad motorcycle interests. M Squared will be all about anything motorcycle related. I plan to demonstrate how products work... including things from lifts to cleaning products. Keep an eye out for more productions.
NEXT MONTH...
We have got the toy boxes are out, and we are planning the biggest All Riders event of the year. Save the date for the one run to rule them all... 6TR: The All Riders 6th Annual Toy Run. 6TR benefits the Toys for Tots organization. We gather toys from supporting businesses all around Fl, and we organize this run to attract motorcycle riders from all over. The entry fee for the ride is one $20 unwrapped toy. All of the toys collected go to Toys for Tots for distribution to underprivileged kids in Volusia County. We have donated thousands of toys with our Toy Run over the past five years. If you can only make one All Riders event this year, make it this one. Saturday 12/4/21.
**Click on the images above to go to RafflePay to buy entries**
The AlpineStar T-GP Plus R V3 Air Jacket raffle is rolling! The is nearly a $300 value! The one we have on hand is XL, but our supporting vendor who donated it, Seminole Powersports North is willing to exchange for another size, or product of equal value if you win!
(*XL-but if it doesn't fit, it can be exchanged for your size)
Winner will be announced at the 6th Annual Toy Run on 12/4/21
You DO NOT need to be present to win.
Proceeds go to the TOYS 4 TOTS organization.
Other Information:
As always, if you would like to check out some fantastic reviews and interviews, check out our relevant pages:
If you are new to riding or want to bone up on some group riding info or learn about how we do things at All Riders, check out:
We also link to the AMA database of motorcycle laws in the USA at All Riders 101.
If you want to learn more about or membership card program: ARMD, go here:
Please take some time and check out the rest of the site, and if you have any criticisms, ideas, corrections, or worthwhile general observations, feel free to email me at:
matt@theallriders.com
ARMD SUPPORTING VENDOR HIGHLIGHT:
Copper Monster Customs makes some seriously badass seat covers and other stuff. ARMD members get either a 20% discount from the total price OR an upgrade to their choice of accent color thread at no charge (usually a $75 add-on)
Mount Dora, FL, United States, Florida
(407) 408-2468
coppermonster.k@gmail.com
Thanks for stopping by. Rubber down!
-Matt
