How Can Depreciation Hurt the Value of Your Motorcycle?

When you purchase a motorcycle from a dealer, or a private seller, you are paying a retail price whether you buy new or used. This initial investment begins to decrease the moment you take possession of the bike. Over time, your motorcycle will lose some of its value for various reasons including wear, tear and mechanical issues. This deterioration of the fair market value is referred to as depreciation.

The rate at which your motorcycle will depreciate is contingent on the number of miles you put on your bike, along with other important factors. These include the make and model of your bike, specific mechanical issues and the overall demand for motorcycles by consumers. Given advances in technology and shifting consumer requirements, certain models of motorcycle can quickly fall out of favor. The fair market value of these motorcycles can decrease rapidly.

If you wreck your motorcycle or are in an accident with motorists, and the bike requires significant repairs, this can further decrease the value of your bike. It can speed up the depreciation and cause a substantial loss of your initial investment. The longer you hold on to a motorcycle, the more likely you are to lose the money you invested along with all of the funds you spend to make repairs and improvements.



While depreciation of some business assets is tax deductible, a motorcycle held by you for personal use doesn’t qualify. So, in addition to the wear and tear on the bike, you don’t get to claim a tax benefit as your asset depreciates. Given that other investments can appreciate in value, or at least pay dividends or interest, there are far better places to park your money than in the corner of your garage. It is better to cash out and reinvest.

Selling your motorcycle for cash is the quickest and most efficient way to stop the depreciation process from eating away at your investment. When you sell for cash, you remove risk from the transaction, and you get money that you can reallocate quickly. There are various investment opportunities that are time sensitive, and the quicker you get cash for your motorcycle, the more apt you are to take advantage of good opportunities.

The second you drive your motorcycle off the lot it starts to depreciate, and it continues to do so until you sell or scrap your bike. It’s better to sell your bike for cash, when you’re done enjoying it, to recoup as much of your initial investment as possible. Reinvesting the money can make your future more enjoyable and can save you the headache of motorcycle maintenance and the added expense of insuring a bike you aren’t using.

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