If you are thinking of turning your used bike into some cash, either to buy a new one, buy better components for another bike or simply finance an adventure or project that needs you to invest some money, it will be good for you to read these tips for setting a good price so that you get the fairest deal for that partner who took you to so many places.
And, setting the price at which we can sell our used bike should not be a task we should take lightly.
Since the market for buying and selling second-hand items is currently booming and competition is greater every day, you need to know that the price you establish to sell your bike will be decisive to carry out the transaction quickly. And if the price does not correspond to the current parameters of the second-hand market, it will not do you much good to put it on sale because you will surely have to wait for months for someone to take an interest in it.
What it is then is to calculate an optimal and suitable sale price for both parties: you as the seller and, for the acquirer or possible buyer.
Calculating the price of your second hand bike
To calculate the cost of a used bicycle, first, you must know what its original price was and then what its depreciation is, these amounts are independent of the possible improvements in terms of accessories and components you have procured.
And depreciation is an annual allowance that covers in some way the wear, deterioration or obsolescence of the property, or in this case of the bicycle. Yes, that’s right, your bike depreciates over its useful life and unfortunately at that price the kilometers of happiness that it gave you are not considered.
In fact, if you have modified your bicycle by installing non-original parts, but of better quality, you will have to resort to the same operation for each of the accessories or components that you have installed, taking into account its current state of wear, years of utilization, and the old or new of your technology.
So the amount of depreciation on your bike depends on what depreciation method you use. The linear depreciation method being the most common to use in this type of transaction. This involves dividing the cost of the bicycle by the number of years of useful life it will have.
Years of shelf life
Determining how many years you think your bike is usable is straightforward, as long as you don’t involve feelings in this operation. A reasonable number, according to some sites for buying and selling second-hand items for a bicycle would be from 5 to 7 years, but do not be scared, if you wanted to sell a car, this time is considerably reduced, indeed, a car As soon as it leaves the agency, its monetary value depreciates by 25% immediately after you leave the agency where you bought it.
Putting a price on my bike
Divide the original cost of the bike by its useful life. For example, if the bicycle originally cost $500 and its useful life expectancy is 5 years, then the depreciation expense would be equal to dividing $500 by 5 years. This would be equivalent to $100 of depreciation per year.
You will have to subtract the depreciation expense from the original purchase price of the bike. The result of this operation is the value at which you can sell your bike fairly.
For example, if the bicycle in question has been in use for 3 years, then the price of the used bicycle would be $200. $500 of the original value between 5 years of useful life is equal to $100, as depreciation expense per year. $ 500 less $300 for use, the second-hand sale value will be $200 after depreciation.
Other options to put a price on your second-hand bike
Right, that’s the way you can put a price on your bike, but it is important that you know that there are also several online pages such as: Bicycle Blue Book, which unlike other online services, are dedicated exclusively to the purchase and sale of bicycles and in which, you can value your bicycle following a few simple steps; Likewise, there are many other services, yes, most are Internet sites in English, which will help you assess a price according to the current market.
Some of these sites are: Bike Jinni , Bike 4 Sale , among others, which, thanks to advances in algorithms, track the market for buying and selling second-hand online to determine what are the most appropriate prices to sell a bicycle Second-hand taking into account the characteristics, components, age, size and condition of your bike.
But, do not forget that you should take into consideration that if you publish your bike on these types of sites, you must sacrifice at least 5% of the total sale value, this for commission for the site, in addition to shipping costs.