Budget Bike Buying
BUDGET BIKE BUYING
How To Get The Most For The Least Amount Of Cash
Dale Irwin
IT’S CALLED fiscal fever. You were going to buy a bike and then the water hole went dry. At first it seemed that your arm was getting stronger because your wallet suddenly became easier to lift. Then you discovered the truth. Your supply of long green had started to atrophy. While you were scanning the track ahead financial obligation was taking advantage of your draft and gaining.
Perhaps you were pooped by “Phase Two.” Maybe the raise you deserve didn’t come through or your overtime was cancelled. Regardless of the cause the result is the same. You dropped the motorcycle from your purchasing plan and only desire remains. You try to forget but the pain begins to pulse anew each time you hear the music of a passing rider. As the bikes are kicked up through the gears you drop cog by cog into dispair. The symptoms siphon your morale and there is no longer any doubt. You have the fever. The fiscal variety.
To overcome adversity is in keeping with the best of tradition. David zapped Goliath, the third little pig cooked the wolf and Don Vesco discovered and proved that (Kel)+350=750. The world is full of people who when offered the wet end of the stick were able to use the leverage to bounce into the box seats. Why don’t you try to make the best of your low financial fuel supply? Reduce the revs, tuck in and see just how far you can go on what is in the tank. You’ll be surprised.
The fastest, safest, most prestigious way to buy a motorcycle is from a top-notch dealer. No other arrangement offers so many advantages. Hospitality, service, parts, financing and insurance all under one roof and at your disposal. This is the best route for all who can afford it. Since we’re trying to do the most with least money, let’s resolve to make do and in the interest of economy forego the niceties a dealer can offer.
At this point a word about the relative cost of new vs. used motorcycles is in order. A certain pride and pleasure results from buying and riding the latest sparkler. But the cost of being the first owner of a motorcycle must be considered a major expense and worth it only if you can stand the gaff. To get an idea of what it costs in depreciation to own a new bike for one year take a squint at these figures. A new macadam massager costs $1500 and one year later is worth $750 in dealer offered trade-in allowance. This means that half the cost of the new motorcycle went down the drain in first year depreciation. To put it another way, it cost $750 to own the new bike the first year. The operating costs (fuel, repairs, insurance, etc.) are in addition to the cost of ownership and are the result of riding. Depreciation continues whether you ride or not.
The second year the same bike will drop slightly more than $ 100 in trade-in value—a significant reduction in the cost of ownership and at a sacrifice of only one model year. Each year thereafter the drop gets progressively smaller until the motorcycle is fully depreciated and levels off at a value which is based upon the condition of the machine. Lesser brands drop a larger percentage the first year and slightly larger amounts thereafter. Thus they tend to reach full depreciation a bit before the so-called premium makes.
The pride and pleasure due solely to riding a brand new bike is really incidental to the overall rewards of cycling. So don’t postpone participation in this sport for any extended period to satisfy your hankering for a brand new motorcycle. Buy used and get in the saddle pronto. Choose to wait and you’ll never reclaim the time and the great rides missed. Remember, the road of life is a one-way thoroughfare and there is no such thing as going around the block. So within reason, make the first trip count. Besides, there will be plenty of time later on to buy the new one.
Motorcycles are like most other commodities in that they are generally sold at two price levels within the dealer/ customer portion of the businesswholesale, the lower figure at which the dealer buys his bikes and retail, the higher value at which he must sell in order to cover his costs of doing business and realize a profit. The buy low, sell high philosophy is a must in business. The dealer must buy low if he wants to remain solvent and he acquires both new and used machines at this level.
Unfortunately, motorcycles are not normally available to individuals at wholesale prices despite some advertising to the contrary. Dealers may camouflage the issue by offering a higher than wholesale trade-in allowance and then jacking up the retail price of the bike they are selling to make up the difference. Even so, the wholesale/retail price relationship prevails beneath the disguise.
Many who want to sell or trade-in their cycle are reluctant to settle for the wholesale price offered by the dealer. Each feels his cycle is a cream puff and sees nothing to prevent his selling it himself at retail or if lucky, perhaps even a little higher. The cards of economic success are not stacked in the owner’s favor.
It would be pure madness to buy a used bike from an individual and pay anywhere near what a dealer would ask and receive for the same machine. The individual seller is in no position to offer warranty protection or any advantages of dealer facilities. Therefore, the individual is forced to sell below the retail level.
Now we have found our niche in the economic scheme of things. We are going to buy the most bike for the least money by settling for a used machine. The price will be lowered additionally by purchasing from an individual owner. This will serve the cause of both seller and buyer by placing the price range above wholesale but below retail. The mutual advantage is reason enough for each party to seek the other.
What kind of motorcycle do you want? What kind is best? The best kind of cycle to buy is the one you want. Motorcycles, like other mechanical contrivances, consist of a series of compromises. No make or model has everything going for it. All are outstanding in some areas and those receiving more acclaim excell to a somewhat greater extent but not in everything. Your choice should be completely subjective. If you like a particular make and model, choose it. Assert yourself. It makes no difference why you want it or what anyone else thinks of your choice. You might not be able to explain to yourself why a particular cycle excites your fancy. Make your choice and don’t sweat it.
If your desires lead away from the conventional into special category bikes your potential for saving money will be somewhat reduced.
Choppers and other handmade motorcycles are not generally considered good buys and are a particularly poor choice when buying while financially distressed. These bikes are part mood and part machine. They represent an emotional involvement of the builder, a sort of link between spirit and line. Creating a chopper or trike fulfills a need of the builder and thereby justifies his substantial investment—an investment which cannot be recouped when his creation is sold. The builders know this, yet they go right ahead crafting bike after bike and if they sell it, it is usually at a significant loss. They don’t really care since the money is spent to provide a recreational outlet and that is ^vhat it’s all about.
Why not buy a chopper if they sell for less than the builders pump into them? The reason is that they often contain so many mechanical compromises that utility and reliability are grossly reduced. A well-executed chopper, like “Whistler’s Mother,” is a legitimate work of art. But neither is renowned for their riding qualities. If, however, a chopper is what you really want to buy and you find one that turns you on and the price fits, go ahead and nail it. Be aware of what to expect and have no afterthoughts.
In addition to the chopper category there are several other types of buys which are not particularly advantageous. Basket cases, however low the initial price, have a tendency to skyrocket cost-wise before they are restored to |-oadworthiness. Great spans of time can also be consumed in this endeavor.
Buying a wrecked bike to fix up can deal an unexpected blow to your finances. Few of us who are not in the business have the technical insight to carry off a project such as this and reach an economically successful conclusion.
Vintage and classic motorcycles are not priced for easy acquisition nor are they particularly suited to provide inexpensive riding. Bikes in these categories can be exciting but are best left alone when money is a problem.
There is one area in which it is possible to make a qualified bargain buy. Department stores and mail order houses fade in and out of the motorcycle business. They buy from established manufacturers and market the ^motorcycles under their own brand "name. The resale value of these bikes has, by tradition, been low. Once the outlet discontinues a model, the bottom falls out of the already low used price. Although none of these bikes can be considered a contender in a popularity contest, most are capable of providing many miles of merriment. The big plus in their favor is the pauper-pleasing price.
On the negative side, dealer service is seldom available and in some areas it might be a problem to find a shop willing to work on a fatherless bike. Since parts are easy to come by the question of service is no obstacle if you lean toward things mechanical. Servicing your own bike provides a great deal of satisfaction and more miles per dollar.
So if you don’t mind being different |^nd can cope with the service requirements, a used department store special offers a low-cost entry into cycling. It’s up to you.
Once you set your sights on a particular make and model the next step is to find out how much it is worth on both the wholesale and retail levels. Retail prices can be obtained by checking the used stock at various dealers. Both levels can be found by contacting your bank, credit union or other money lending concern. Most have price guide information available for use by their lending departments and can readily provide the information you need.
If the motorcycle you’ve chosen turns out to be above your means, shift to one you can afford or settle for a model year older. The idea is to set an objective you can achieve and then reach that goal by finding and buying the bike.
After you learn the price range of the bike you are considering, mark the figures well in your mind. When you start discussing prices with prospective sellers you will be subjected to a whirlwind of weasel-words and that is no time to be caught with your prices down. A little additional data concerning general pricing practices should also help you.
Bikes fall into price categories based upon their make, model and model year. Early or late year considerations have little or no effect on the basic price range unless substantial modifications have made during the year. An improved fork, altering the number of speeds in the transmission or other major modifications can be reasons for asking slightly more, provided the later changes are desirable (they usually are).
Where the price falls within the applicable bracket is determined by the general condition of the motorcycle. One that has been kicked hard and shows the bruises will bring less than a clean, well cared for machine. The mileage shown on bikes having a speedometer is a guideline consideration but nothing more. A nicely maintained motorcycle showing more miles should command a better price than a low-mileage bowwow with a bad complexion.
Items of obvious need must be subtracted when formulating an offer. If a new chain is required, lop the price of a replacement from your offer. If the bike requires a safety inspection sticker and doesn’t have one or can’t pass the inspection, make a suitable reduction in your allowance. Trifles soon add up to a respectable sum. Be frugal and don’t pay for more than you get.
Geographical location is a variable deserving consideration. For example, a desert rig should bring a better price in California than in Ohio. It could be sold almost anywhere, but a high level of local interest tends to nudge the price up.
There is also a local craze phenomenon wherein a certain bike just catches on in an area, thus raising its price a bit in that particular locality. There is no great mystery in this concept and common sense will guide you accordingly.
If you’re in the market for a hairychested large-type cycle your searching will uncover many accessory bedecked behemoths. Each gob of glitter will enhance the value as viewed by the seller. Windshields, fairings, saddlebags and premium suspension units do increase the value of a used bike. Many more of the functional accessories also pad the cost, especially if they are the manufacturer’s optional equipment line.
Unless you have a need for the accessories, avoid bikes that are loaded. There is no sense paying for equipment you neither want nor need. If you want accessories and are willing to pay for them, the following should assist you in making an offer. Fifty percent of the new price is the maximum you should consider paying for used accessories. Only those a year or less in age and in top-notch condition qualify for 50 percent. Older equipment is worth progressively less, depreciating in the same manner as the cycle on which they are mounted. The price of accessories is added to the cost of the motorcycle to arrive at the total package price.
In contrast to functional accessories which enhance the value of a motorcycle there many claptrap items which often as not reduce the value of a used bike. Machines are offered with this type of equipment and usually the seller contends that the extra “goodies” command a premium price. He sprung for the novelties and would like to beckon a buck back. Evaluate the extras carefully. Do they enhance the value of the bike as you see it? Will the utility or handling be hampered by the changes? Will riding the cycle so equipped expose you to traffic citations or safety check violations? If the answer to any of these > questions is unfavorable the price offered should be adjusted to compensate for the shortcomings.
Once you have picked the cycle that strikes your fancy from the price bracket within your means, you are ready to start looking. Read the classified ads in your local newspapers. If your company, school or neighborhood papers carry classified ads, check them, too. Keep an eye on bulletin boards at work, school and in shopping centers. Take time to check every handy source of information which might lead you to the right bike. Review the ads for likely prospects. Disregard the adjectives used to describe the machines and also the asking price when given. If the remainder seems to hold promise, follow up.
If perusing the ads for a reasonable time fails to produce a winner, take a positive step in your own behalf. Scratch out an ad outlining the type of cycle you would like to buy. Don’t discuss prices in the ad. Be sure to include your telephone number so repliers can contact you. Run the ad in the Sunday edition of your local paper. Many papers offer a weekend special giving Friday, Saturday and Sunday coverage at very low rates. These ads bring results and cost little.
Get ready for the appearance of your ad by making a chart on which to record replies. List the pertinent categories of information such as make, model, mileage, etc., across the top of the page, then each successive possibility can be entered horizontally below. Don’t forget to include a column for the owner’s address or telephone number so that you may find and look at the bikes which seem to meet your requirements.
Arrange to stay near the phone while your ad is running. Don’t yield to temptation and zip out to look at bikes during this period or you will be shortchanging yourself. After the calls stop (sometimes they continue several days after the ad disappears) take time to go over your chart and evaluate the contents. If you’ve done a good job, the chart will offer plenty to ponder. Number the possibilities in the order in which they appeal to you. Inspect the most interesting offer first and work right on down the line, checking them off as you go. If the response is good it may take a week or two of spare time to check them all. If the chart fails to produce a winner, rewrite your ad and run it again. Sooner or later you’ll connect.
Look at any bike that interests you. If it promises possibilities the look might turn into an advantageous buy. If not, you’ve gained the experience of looking at another bike and giving it the once-over. Although inspecting a used bike isn’t really difficult, the more experience you get the better your chances of making a good choice when you buy.
If you are not mechanically inclined ask a friend whose judgment you respect to look at the cycle you are considering. When your sights are set on an expensive super-cycle type, hire a mechanic to have a look and check your judgment. Money thus invested will pay back big dividends in protection.
Any motorcycle tends to look good if you don’t have one and your ache for acquiring one is acute. Now here is an important point! A used bike looks best when displayed alone. When a dog sits next to a new machine, it looks like a dog. A dog next to a junker looks nearly as bad. Alone, however, the most miserable mound of miscellaneous internal combustion hardware can project enough class to charm the jingle from the jeans of anyone with a strong hanker to buy. You will probably view
prospects without a standard for comparison, so watch it. Stand loose and keep a good hold on your cool. Don’t let your own emotions put it to you. OK?
When you find a likely prospect and a visual inspection sparks your interest, ask for a ride. No serious consideration can be given a used bike until you know it performs. The operation of the engine, transmission, brakes, suspension and many other important components can best be checked while riding. If the bike has lights keep them on during the test and use both high and low beams as the situation permits. Check the horn, too. Remember, the ride is to see if the bike will cut your kind of mustard and not to test its limits of performance, so don’t lose sight of your objective.
It is not fair to request a ride unless you are an experienced, competent, capable rider. If you are not up to the ride prevail upon a knowledgeable friend to act as a test pilot. The owner may demand to go along or insist that he take you for a ride. Work out an arrangement agreeable to both. The important thing is not to buy a used( bike without riding it or having it test ridden. If the owner says no, bow out.
If the ride confirms your expectations and you are convinced that the bike will fulfill your desires, decide what you are willing to pay to make it yours. Your decision should be based on your knowledge of the wholesale/retail price spread and what you are willing to pay within that range. The cleaner the bike the greater the value. Evaluate it carefully, making sure to subtract for any repairs needed. When you decide on a figure make a mental note that you will buy only if you can get it for that amount or less.
Don’t make a decision to buy without cranking in the maximum price for which you are willing to spring. To do otherwise tends to leave you regarding, the bike as yours at the moment off decision. This results in a psychological disadvantage since you soon find yourself trying to ransom the motorcycle you consider yours from its real owner. This is a poor mental bargaining position.
If you are a horse trader type here is where you can come into your own. You can haggle and bargain to your heart’s content while trying every weapon in your arsenal. Recognize one limit. Offer no more than the maximum you originally decided upon. This is your bargaining ceiling, so be mindful of it. Play it by ear and swing in the direction which shows results. It is beyond the scope of this article to provide complete coverage for all the bargaining contingencies you might encounter. If the following three pointsi are kept in mind, negotiations should" not depart too far from the path of reason:
1. Make several preliminary lesser offers before tossing in your self-imposed maximum amount. Offer the maximum only as a last resort.
2. Don’t rush.
3. Keep your emotions in check. (The calmer the better.)
Your adversary will probably know what his bike would bring on the wholesale market. If you doubt his knowledge of it, tell him. Be honest and forthright. Your objective is not to perpetrate a swindle or con the owner out of his bike. You are simply trying to negotiate an advantageous buy for yourself and at the same time provide the owner an opportunity to sell above the level generally available to him. This is moral activity and you needn’t hide nor be ashamed of your motives. You owe no apology.
A deal can be finalized in one bargaining session, but don’t sweat it when several are required. If it becomes obvious that your efforts are bogging down, break off by restating your final offer, leave on friendly terms and convey the Pnpression of waning interest. Wait a week or two or whatever interval seems appropriate and then phone the owner. You may find he has had time to regret his refusing your offer and is ready to sell your way.
The level of activity will be governed by your zeal and the time you are able to devote to the project. It’s possible to be dickering with several owners at any given time and you may find it advantageous to do so. The more deals you have on the fire, the less the chance of your being tempted to spring too far up the price ladder. Remember that any or all of the foregoing steps can be repeated as many times as needed to get the job done. You have the handlebars and you pick the line through the dealing.
^ Don’t be deterred if you should encounter a prospective seller who is springloaded. As we dice down the road of life we can’t help but cruise by an occasional cat committed to the conservation of bitchiness. Forgive him and forget him in that order and then on with the business of buying a bike, elsewhere.
In giving up the niceties and convenience of buying from a dealer, and agreeing to test our mettle in the open market we accept increased exposure to various pitfalls. Let’s look at a few and become familiar with them, so that they can be avoided.
Be wary of a deal when the owner seems to lack important information about his bike. If he is vague concerning the model year or displacement he may be inviting you to jump to conclusions. Ipften, the yearly changes in a particular miodel are so subtle that altering the trim or a change of paint presents a reasonable disguise. Sellers find it convenient to misquote the vintage of these mounts or allude that they are what they are not. If, in your eagerness, you get sucked in, it means dollars down the drain.
Although it may sound farfetched, buyers sometimes get shorted on displacement. Unless you have a real familiarity, as little as a missing decal can put you in a quandary. Take time to learn to know the bike or bikes you are considering. Your efforts will ensure that your bucks buy the bike you want.
While reading the classified ads in search of a motorcycle you may notice that certain ads, parts of ads or phone numbers appear time after time. Soon ^ou are able to spot the repeaters at first glance. Common sense tells you that anyone advertising bikes for sale on a repetitive basis is in the business. The chances are good that the businessman operates from his back yard and sells used motorcycles in his spare time as an avocation. Although it’s no formula for getting rich, many do very well considering their meager investments in time and money.
Most back yarders drift into their money-making hobby over a period of time during which they develop and polish their techniques. Once they arrive they are a formidable adversary. Slick. They usually offer one bike at a time and more often than not, it is a less favored make or an ancient model of a better known brand. The bikes come from various sources and sometimes are trade-ins dumped by a dealer who considers them too risky to carry his banner. Occasionally an individual will consign his cycle to a back yarder in hopes of getting more from its sale.
This kind of dealer is crafty and bad news for the unwary. His time-polished pitch was evolved through experience and honed on success. He may tell you that he’s getting too old to ride, selling for a friend who is overseas, took the bike on a bad debt or a hundred and one other stories, but the chances are slim that the buyer will learn the real scoop.
He hopes the buyer is ill-informed, buying his first bike and fat around the wallet. He is looking for a victim, not repeat business, and his deal carries the highest hazard count. Each has his own thing which may range from the price gouge to the new gasket overhaul. Stay away from this type of situation. There are too many motorcycles available from less questionable sources to take on the risk of a professional fleecing.
As is the case with many other types of vehicles, chicanery is sometimes practiced with motorcycle title and registration documents. Since many states haven’t gotten serious about motorcycle registration procedures and police lack the time and resources for dealing with bike thefts, it’s wise to be alert when buying a used cycle. Ask the seller for a bill of sale when buying an off-road machine having no title on which to sign over the ownership. When buying any bike covered by papers, check to see that the serial numbers on the documents match those on the cycle. You can strap on additional protection by paying by check and noting the model and serial numbers on the check. If the seller refuses your check, substitute a money order and list the pertinent numbers on it. These simple steps will help safeguard the deal and protect your investment.
Since the obstacle we are trying to surmount is a shortage of money, here are a few words to help you conserve the nasty stuff. A buyer who has his money in hand will pay less for any bike. It costs less to spend money which belongs to you, so if possible avoid borrowing. Tap your savings, sell something you don’t need, quit smoking, use your income tax refund, draw dividends or cash bonds. Explore every source of money in your personal resources. Don’t go over the high side and wipe out your budget. We are not advocating poor management. Just go over your personal worth and evaluate it carefully. Most of us have more wealth than we think. Sometimes it just takes a bit of looking.
If, after coughing up all you can, you still need a loan, shop for the least expensive source. The credit union where you work should offer about the best deal available. Most will make signature loans at low interest rates without charging for loan protection insurance.
Banks, loan companies and other lending outfits get to you a little more briskly than your credit union. If you find it necessary to patronize one of these, the cost of making the deal will increase somewhat and perhaps reduce the range of bikes from which you are able to buy. Summon the grit to make it on your own if at all possible. The character and discipline you develop can be used to advantage in other facets of life. Your personal satisfaction will run a close second to the pleasure of owning a motorcycle.
Motorcycling is great! It offers something for everyone and you are free to write your own program. The ticket is a motorcycle. The bike permits you to move from the lobby of passive enthusiasm into the arena of participation. We have marked the way and the trip is easy and fun. Start today. Move along at your own pace, learning as you go. Don’t be afraid to repeat steps if that is what is needed. When the time arrives to buy, you’ll be ready.
