Buying a brand new two-wheeler is a great feeling. However, it can be expensive. In this short article CredtiMate looks at the depreciation modelling of average bikes in India and explains the process.
Like anything Brand New and un registered has a different price to used. Unfortunately, this is the case especially in vehicles where as soon as you drive the bike away from the dealer your new bike is now considered Used. Typically, this means a whopping 15% straight off the value should you need to trade it in.
On average, this value reduction happens fastest in years 0 to 2 then slows down. The rate of the decrease in value can be mapped on a depreciation curve:
Some bike models depreciate faster than others, and some keep their for value longer. So if buying a new two wheeler consider the resale or trade in value for that particular model unless you are planning to keep it for decades until it becomes a classic!
The advent of GST which means that on the road price variations across the country have reduced. In addition, a recent increase in supply of new stock the depreciation from brand new to 1st owner is accelerating. Previously used prices for nearly new bikes were kept high because of limited or delayed availability of the new model (buyers were not prepared to wait for delivery). Now with new stock available for popular models the pricing
This is good news for used bike buyers who want a great quality nearly new bike. You can often save yourself upwards of 25% of the price of new for a less than two year old bike.
Smart Buyers save more!