Understanding the resale value of a financed two-wheeler is important when owning one. Whether you plan to upgrade or simply want to know how much your investment has depreciated, evaluating the resale value can help you make the right decisions.
Here are some essential tips to help you accurately assess the resale value of a financed bike.
Tip 1: Understand the Rate of Depreciation
Depreciation is the decrease in two-wheeler value due to age, kilometres driven, and condition. Generally, most two-wheelers depreciate by about 15% annually in their initial five years of life span. This will serve as a starting point to estimate the two-wheeler resale value.
- Age of the Vehicle: The older a bike, the less it would be worth. A motorcycle normally loses its maximum value in the first few years.
- Kilometres Driven: The resale value is low whenever the distance travelled figure is higher. Bikes with a lower kilometre reading are generally more desired.
- Condition: A bike that has not deteriorated much and is in a good state will have a better price than the one that is not well maintained.
Tip 2: Utilise Online Valuation Tools
Various online platforms can assist in determining the value of your two-wheeler. You can input the following details:
- Make and model
- Year of manufacture
- Current condition
- Mileage
These tools will break down market trends and comparable listings, giving you an approximate value for resale, which is incredibly helpful to any seller looking to set a competitive price.
Tip 3: Do Market Trend Research
First of all, to find out the resale value of a bike, you need to know the market trend on the value of used bikes. Consider how the demand is for specific models, seasonal fluctuations, and economic trends that could all play into things and impact prices.
- Model Popularity: Some models are more valuable than others, so it’s essential to know which ones have been in demand lately.
- Seasonal Demand: There are times in the year when it's easier to sell two-wheelers, like during festivals or summers, and this naturally increases your chances of reselling.
- Economic Conditions: Economic factors such as high fuel prices, high consumer spending, and more may also boost the sales of pre-owned bikes.
Tip 4: Maintain Document History
Maintaining an all-inclusive account of all service and repair jobs will significantly enhance the value of your two-wheeler if you want to sell it. Buyers are willing to pay additional money for a bike with a documented service history, as it indicates the owner has taken good care of the vehicle.
- Service History: Keep copies of all services done, including oil changes, tyre changes, and any significant repair jobs.
- Condition Reports: If you have had significant work done (such as engine repairs), document this, as this may reassure a potential buyer about the bike's reliability.
Tip 5: Evaluate Financing Implications
If your bike is under a two-wheeler loan, you will have to understand how the current market value of your two-wheeler relates to your outstanding loan balance. This will help you determine your financial position when selling or trading the bike.
- Loan-to-Value Ratio: Calculate your LTV by dividing your current outstanding balance by your bike's present retail market value. A large LTV ratio may indicate that you owe more than you would otherwise be able to collect if you were to sell your bike and may make selling or trading your bike a challenge.
Conclusion
You can check the resale value of a bike by considering depreciation rates, market trends, maintenance history, and financing. With these tips, you will surely get the best returns for your investment if you sell your vehicle.
