qdetty

Guys,

What decides re-sale value? Is it the engine quality or brand or technology it features or the volume of bike sales or just the "perception" that this bike should fetch a high resale value?

I see that Hero Honda splendor has a good resale value compared to say, for instance, Yamaha bikes. Does this mean that Yamaha bikes are inferior to Hero Honda bikes? Or is it the maintenance? I own Splendor. I changed the battery once, tyres twice in my whole 10 years. So, I would say that it incurred me less maintenance cost, but, it's just me, heavily dependent on the rider. For others, this bike might put a bit hole.

I think it may go like this.

The rider sees a good bike, (good - according to his requirements), passes his feedback to others and it just cascades. Even people are ready to buy those "good" bikes when sold as "second-hand". This increases in volume and on average it fetches a good value.

Thanks

sunilg

Interesting discussion approved.

I think the main thing that decides the resale value is the perception in the peoples' mind about that particular brand. And that perception is built upon the experience the society in general has had with that particular brand over the years.

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sayank10

for me the factor affecting resale >>
for noob>the particular brand or particular model that he heard to be good from friends,peers.
for experienced ones>the condition of engine,tyre,km covered,overall conditions.
in second hand market sometimes brokers unreasonably increase resale value of particular model.

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Samarth 619

The seller finds excuses as to how the bike has lost its value, like it is a Bajaj bike, it has scratches, its servicing is due, it has completed so many years, needs parts replacement, etc, etc.

The buyer finds excuses like its a Hero Honda, well maintained, used by single owner, never gave any problem, just returned from service, etc, etc.

Both sets of excuses lead the buyer and seller to a price range they feel is acceptable. Like seller thinks 35,000 to infinity is acceptable price and buyer thinks that Zero to 30,000 is acceptable.
So, equilibrium is reached somewhere between 30,000 to 35,000 depending on negotiation.

If the price ranges don't intersect, someone would have to compromise or the deal doesn't happen.

What this basically means that even if Bajaj bikes are of high value to me, I will cite this as an excuse to get a good deal. Everybody's objective is to get a good deal, no matter what reasons they give for it and whatever the truth is.

vineshp

Another important factor is the market share of the particular model.

For eg, Splendor dominates sales in Commuter 100cc segment. It commands more resale value. And Yamaha Crux's sales is very low. So, in resale market also, the value is lower as very few people are 'in the look-out' for Crux.

If the model has stopped production(Hero Honda Street,TVS Fiero F2) or worse, the manufacturer itself cease to exist (LML Freedom,Kinetic Blaze), then resale value is very poor.

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Satyamzma

I feel mostly 3 Points decides the Resale value of a Bike..

1.Brand

2.Bike Condition

3.Model is in Production or Discontinued

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HarishK

Your Urgency has the 1st impact on resale value

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