Do Mountain Bikes Hold Their Value? An Honest Answer
Mountain bikes cost a lot at purchase, so you might (rightfully) expect to get some value out of yours when it’s time to resell. You don’t want to invest hundreds of dollars just to watch them vanish after a year or more. But do mountain bikes hold their value?
Mountain bikes do not hold their value. The average mountain bike will lose up to 41% of its value after the first year of purchase, and the value depreciates gradually with each passing year. The speed of decline in value varies depending on the brand and condition of the bike.
This article will take you through everything you should know about the value of your mountain bike and what you can do to preserve it.
Mountain Bikes Lose Value Significantly After the First Year of Use
Premium quality mountain bikes enter the cycling market daily. New models come with tons of modifications and high prices. Some bikes are worth over $10,000 which is higher than the cost of some brand new and pre-owned cars. However, the bikes have a surprisingly fast depreciation rate.
The moment you set your mountain bike on a trail, its value starts to depreciate at high speeds. So fast that, by the end of the bike’s first anniversary, more than half of the bike’s value will be gone.
So, you can expect to resell a bike you bought for $10,000 at around $5,000 after a year. You might also think mountain bikes from renowned brands like Santa Cruz and Trek would have a higher resale value. After all, they use the best materials like carbon fiber to produce the best versions of mountain bikes and slap a high price tag on them.
However, these top brands actually have a lower resale value than their lower-end competitors if they aren’t in good condition. Some will lose up to 55% in initial value after one year.
Mountain Bike Depreciation During the Second Year
Fortunately, the value drop slows down after the first year, dropping to five to nine percent during the second year.
Assuming you purchased a bike for $7,000, you can resell it for $4,000 or $3,500 if you choose to sell it after one year of ownership.
Within the second year, it can drop to $3,000. By the third year, you’ll offload it for around $2,700. After the third year, the value drops significantly, and it gets harder to resell a bike for a fair price. Most second-hand bike dealers only have bikes that have been used for one or two years.
Asides from age, the value decline depends on other factors like the bike’s condition. Most bikes in their first year tend to lose only 38% of their value if they are in excellent condition. This is according to the popular bike valuation website Bicyclebluebook.com.
On the other hand, if they are in fair condition, they might lose up to 62% of their value. Therefore, age and condition work together to determine the overall value of mountain bikes.
Measurement of a Mountain Bike’s Condition
As mentioned above, an important factor that determines the resale value of a mountain bike after its age is the condition of the bike. The condition of a mountain bike can be classified into five categories listed below.
Mint
A mint mountain bike is relatively new, between one to three months, and hasn’t been used more than five times (at most). All its components are still new, and sometimes you can perceive the fresh scent of unwrapping a new bike while you check it.
Therefore, its mileage is very low (less than 100 miles or 161 kilometers), and it has no dents on its frame. The bike’s condition is so good that it doesn’t need further maintenance before the owner can resell it. Well-packaged bikes in mint condition will easily pass for brand-new variants.
Excellent
A bike in excellent condition isn’t as new as a mint bike. It has seen the trails or roads many times more than a mint, yet, is still in perfect condition. There are no obvious dents, mechanical challenges, faded graphics, or severe damages.
The bike looks great and can go into the used bike market without the need for maintenance or replacement of its parts. The value of this bike is close to that of a mint.
Very Good
A bike in this condition has seen the trails many times and has also spent a reasonable amount of time on the roads. Yet, it sports only a few scratches that a buyer can overlook. Unless the buyer is a perfectionist, a bike in this condition will offer good value for its price.
On first sighting, any buyer will notice that the bike has been on the trails for a while but can still perform well.
The bike could use a few maintenance procedures here and there to keep it in the best shape for resale.
Good
A bike in good condition has few chances of selling at a fair price. Its mileage is high. From a distance, anyone can see that the bike has gone through a lot on the mountains and roads. Scratches, dents, worn-out tires, weak frames, faded graphics, and rustic metal parts are some of the evidence of a used bike.
A bike in this condition will need a few maintenance procedures. The tires, brakes, tubes, and chain will require replacements, while other parts like derailleurs, shifters, and shocks are still in good shape.
Fair
This is the lowest you can go in the condition scale and a bike that falls in this category will demand a lot of work to sell at any price at all. Many of the bike’s parts will call for attention and replacement. From the worn-out frames to many dents around its components and rustic wheels, many clues will give the bike away as one with high mileage.
The suspension and brakes will need complete servicing along with other integral components. The bike may also squeak while testing, and it’s a sign that it requires urgent maintenance or complete replacement of parts. Most bikes in fair condition are usually above three years old, and you can’t expect a lot of money from the resale.
Factors That Sustain the Value of Mountain Bikes
Indeed, mountain bikes can’t hold their value for long. However, some factors might help sustain the value of bikes or slow the pace at which they decline.
These include:
Brand Name
There’s something special about a brand name. People love to associate with famous brands and see every product from them as superior even when there are better (or equal quality), lesser-known alternatives.
Mountain bikes are not left out of this preferential treatment for brands, and it’s a factor that plays a critical role when you want to sell your used bike. Top-tier brands for mountain bikes include Santa Cruz, Yeti, Specialized, and Giant.
These brands have built a track record of consistency with quality mountain bikes, and the mere mention of their names commands respect from avid bikers. If you get a bike from any of these brands, its value will depreciate over time, but the brand name will give you an edge.
If you try to sell a bike from a lower-end brand and a bike from a top-tier brand within a given time frame, the latter will sell first and better. It’s all in the name.
Trend
Bikers love to follow trends, and they are not alone. Everyone loves to associate with trendy products, even when it’s a minor upgrade in a handlebar. If you go with an old model to the used market, there’s a lower chance of selling the bike, let alone for a rewarding price.
When a new trend in bike features emerges, it floors the previous and relegates it to the background along with its value.
Bike technology evolves by the day as manufacturers seek innovative ways to dominate the market. If your bike has the high-end features of modern mountain bikes, expect to extract more value from it compared to other models.
Some features of modern bikes that can minimize their depreciation value include;
- Boost hub
- Tubeless tires
- Zero kickstands
- 29-inch or 27-inch wheels
- Minimum of 30mm rims
Any features of your mountain bike below these standards may attract lower pricing.
Sometimes, you have no choice but to part with whatever the buyer has. To ensure you keep up with the trends, purchase a bike with a buy-back guarantee that allows you to replace your older version with the latest.
Upgrades
When you make impressive upgrades and adorn your bike with different accessories, they appear attractive for resale. Some people love the sophistication, but that will do little to uphold the bike’s value. These upgrades are more personal, and your new buyer might not like the features on a closer look.
The key to upgrades is to improve the parts that enhance riding comfort, safety, and ease of use. Personalizing your mountain bike with features like custom cranks and seat posts will offer less value than upgrading the suspension, wheel, or power meters.
Upgraded suspension or wheels will command attention and take your bike’s value up a notch. To upgrade, you can look at areas that matter, such as comfort and style. You should also focus on upgrades that will increase performance. These upgrades can also elevate your bike from fair to very good condition.
Frame Material
Frame material affects the depreciation rate of mountain bikes remarkably. It’s the part of a mountain bike that accounts for durability. While an aluminum alloy frame isn’t a bad option, it’s not the best and won’t add much value to your bike in the used bike market.
Aluminum is the lowest in the hierarchy of materials. Its value drops by the second, and a small dent can reduce the bike’s value even further.
Carbon fiber and boutique steel are excellent in performance. Carbon composites are strong, light, and expensive. They hold a substantial value in the second-hand bike market if the bike is in good condition overall. Notwithstanding, scratches on frames are turn-offs for second-hand buyers.
However, the king of them all is Titanium which is corrosion-free, lightweight, flexible but sturdy, and durable. Titanium beats other materials in the bike manufacturing industry, including platinum, and boasts twice the strength of aluminum. Titanium is a metal rarely used in construction; thus, it is very valuable.
If you own a mountain bike made of Titanium, you can expect a much lower depreciation rate through the years.
Tips for Selling Your Used Mountain Bike
Have you decided to sell your mountain bike? Below are some tips to help you get the most value out of the deal.
Decide Fast
Sometimes, you get confused about selling your bike. You get emotional about it and drag your foot for long before being resolute.
While you linger on the sale of your bike, time continues to elapse, leaving you (and your bike) behind. The value of the bike drops by the day, and new features rise to the mainstream market while you continue to use your bike.
When you eventually make up your mind, the bike’s condition might have dived from excellent to fair. So, you spend more to fix it yet sell it for less. While you don’t want to make a decision you’ll regret later, you need to strike the proper balance. Remind yourself why you want to sell the bike and move quickly.
Wash and Service the Bike
Before you put your bike out there for sale, take the time to clean it up properly. Service all parts that may be faulty and employ a bicycle repair specialist if you can’t service it yourself.
Wash every part of the bike properly and clean it up. You want to ensure the mountain bike is in the best possible condition for sale.
If you can do it yourself, then perform the following:
- Check the tires for wear and tear
- Clean up the frame and wheels
- Grease the drivetrain
- Check the suspensions thoroughly
- Tighten every bolt
It’s not an exhaustive list, but it will give you a good start.
Be Honest With Your Descriptions
To avoid trouble with potential buyers, provide true and accurate descriptions of your bike. Don’t try to sugar-coat it by adding missing features in the bike.
Buyers will find out anyway, so remain true to the description. The model, age, components, upgrades, and everything about the bike should be genuine. Buyers will appreciate the sincerity, and you’ll avoid the hassle of potential requests for a refund after lying to them.
Take Quality Photos of Your Bike
It’s the pictures potential buyers will see online before they call (if you’re not selling to a neighbor or family member). Take excellent pictures of the bike to court attention. If the picture is blurry or clear, but of low quality, no one will bother to take a second look.
Pictures are attractive. They are the first impressions you give to buyers. You want the picture to draw attention on any listing website you decide to use.
That’s what your audience will think of your mountain bike. So, take close-up premium quality shots of the bike that highlight the upgraded parts.
Make Up Your Mind on the Resale Price
You know how much your bike is worth from the condition scale, age, and the price you got it at first purchase. It’s time to decide how much you will sell it for and make room for a compromise.
Compromising means you should decide on the lowest price you can sell it for to avoid disappointment.
Always expect surprises when selling used products and brace up to handle them. You might be disappointed with offers if you don’t anticipate low-ball bargaining from potential buyers. Set a resale price range and be ready to make compromises regardless of the bike’s condition. However, don’t accept obvious low-ball offers.
Where To Sell Used Mountain Bikes
Choosing a marketplace is the next decision to make with everything in place. One essential factor you must keep in mind before you pitch your tent in an online marketplace is commission. You’ve likely lost more than half the value of your bike’s initial price. It’s in your best interest to avoid losing more on commissions.
Survey different online sales portals and check their commission rates. You also need to find one with a higher chance of selling. Sites like eBay and Amazon have massive audiences that boost your chances of visibility.
Additionally, beware of scammers and ask to meet every potential buyer in a public place for your safety.
Conclusion
Mountain bikes don’t hold their value. They depreciate as the years go by, especially within the first year of purchase. However, age doesn’t affect a bike’s value as much as its condition does.
Therefore, you can provide a wedge against value depreciation by taking good care of your bike and servicing it regularly. When you decide to sell, move quickly and be realistic about your pricing. One good way to handle the loss of value is to see the amount lost from the bike’s initial price as the cost of enjoying the bike over the period you owned it.
