Bike sales in decline
- Thread starter Smokin Joe
- Start date
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Fair enough. Can understand how that must read.
What I meant was that it’s 30 mins of downtime that I use for discounting hunting as otherwise waste it.
Johnno260
Veteran
- Location
- East Sussex
Again each to there own, My opinion on new cars is you drive it off the forecourt and it’s already depreciated.
Some people want a new car and it’s their cash to spend as they please.
I never understood the concept of something depreciating the moment it’s bought. That only means something if the owner immediately attempts to sell said item the moment that they step out of the vendors premises...and who does that generally?
It’s like saying that you wouldn’t buy a second hand car, because it would be worth less in 3 years time.
It’s like saying that you wouldn’t buy a second hand car, because it would be worth less in 3 years time.
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Johnno260
Veteran
- Location
- East Sussex
Friend who wrote off a car when it was a week old wasn’t best pleased with the payout from his insurance.
If he did not get new one he was a total muppet.
SkipdiverJohn
Deplorable Brexiteer
- Location
- London
Most nearly-new secondhand stock comes from ex-fleet sales and PCP lease handbacks.
[QUOTE post: 5037349, member: 32090"]I never understood the concept of something hung deprecating the moment it’s bought. That only means something if the owner immediately attempts to sell said item the moment that they step out of the vendors premises...and who does that generally? It’s like saying that you wouldn’t buy a second hand car, because it would be worth less in 3 years time.[/QUOTE]
The fact is that almost everything we buy depreciates in value, as we consume it's useful life by using it, and it's desirability reduces as it's age increases. If you bought a really fancy brand new bike today costing £6k Retail, £1,000 of that price would go to HM Govt in VAT. That's dead money. If you had some sort of unexpected financial meltdown and needed to sell it next week to raise cash in a hurry, the absolute max starting point for a buyer would be £5k, IF the bike was still in it's crate. They're only interested in buying a bike after all, not reimbursing you your VAT bill. Then, if the bike had been removed from it's crate and a wheel had touched tarmac, they would say "this isn't new, it's been ridden". I would say, on a good day, your one week old £6k bike might fetch £4.5 k and quite possibly nearer £4k. This is why the canny motorist buys nearly-new cars where the steepest part of the depreciation curve involving the VAT has been passed, and it begins to flatten off.
Ming the Merciless
There is no mercy
- Location
- Inside my skull
In June 2016 you got $1.42 to the pound and €1.27 to the pound. They are now $1.31 and €1.13 so it is bound to depress sales. If we do not get a trade deal with the EU it will be interesting to see what impact that has on import dury from European countries currently 0%. Bikes are 14% duty plus 20% Vat and bike frames and forks 4.7% duty plus 20% Vat if they come from outside the EU. If the stuff from the EU has those hikes expect big increases and further depression in the sales.
But of course the people who voted out were not thinking about the financial aspects.
I totally understand the concept @SkipdiverJohn, and it would be very unfortunate if any of us had to sell that £6k bike very soon after purchasing.
I agree there. What I don’t agree with, is making purchases solely on the worry that I will need to sell them immediately. That’s no way to live.
Another point is that if you make canny purchases then you can buy a brand new bike without losing anything at all. Your example is perfect when talking about the last bike that I bought. A rather fetching Ridley Noah SL Ultegra model, with Lotto Soudal paint job. Full price was £3,400. I paid £2,250. That’s around 33.8% off. Worst case, using your figures above, that £6k bike sells for £4k...which equates to 33.3%.
At that time, the cheapest bike, in those colours and spec, available on eBay in used condition was £2,750.
I agree there. What I don’t agree with, is making purchases solely on the worry that I will need to sell them immediately. That’s no way to live.
Another point is that if you make canny purchases then you can buy a brand new bike without losing anything at all. Your example is perfect when talking about the last bike that I bought. A rather fetching Ridley Noah SL Ultegra model, with Lotto Soudal paint job. Full price was £3,400. I paid £2,250. That’s around 33.8% off. Worst case, using your figures above, that £6k bike sells for £4k...which equates to 33.3%.
At that time, the cheapest bike, in those colours and spec, available on eBay in used condition was £2,750.
Or just buy from outside the EU. We already have those deals in place and many bikes are bought here on a daily basis.
I don’t buy the hype around the “deal” with Europe tbh. Supply and Demand dictates everything. If we had on tax, people either accept it and everything just costs more, or we stop buying. What happens next? They either drop their prices, or we find someone else selling cheaper. Or make the stuff ourselves. Imagine that!
They won’t want that and will clearly want to come to a better arrangement. Especially considering that we import a lot more than we export these days.
Ming the Merciless
There is no mercy
- Location
- Inside my skull
Yeah but that 30-40% increase in price is not to be just absorbed, it is pause for thought.
SkipdiverJohn
Deplorable Brexiteer
- Location
- London
The EU can get lost as far as I'm concerned, I want nothing to do with them and yes I voted for Brexit. If we had another referendum tomorrow, I would STILL vote for Brexit. For years the EU has been artificially raising the cost of all sorts of imported goods and food as a result of their barmy protectionist bloc policies and the CAP. Brexit is a massive opportunity to obtain products from all over the world under generally lower WTO tariffs - and not have to subsidise the French farming industry. The Brexit-related arguments about the exchange rate are spurious as the Pound has been lower against the Euro on previous occasions, long before the Referendum date was even announced. The world is a big place, the EU is just a tiny part of it, and an ever-declining proportion of world trade.
