Could you help with valuation?

CiniO

Hi everyone.

I have an opportunity to buy a bike (for my missus), but would like to get some help from all you experts here in relation to valuation.

Bike is 2014 Kona Coco (hybrid commuter).
http://2014.konaworld.com/coco.cfm

I can't remember exactly but I think its shelf price in 2014 was around €650.

Bike in question has been part of a fleet. Has been very little used (probably traveled no more than 200-300km). However it has few scratches from transport/storage. Also it has been stored outside few times, and therefore there's bit rusty residue on chain/cassette as well as some nuts and screws. Nothing too bad.

What do you think that bike might be worth paying for?

Jimmy.

€80-€100.

CramCycle

300 if mint, but considering you have rust spots, 100 to 150

Lumen

For used bikes of no particular character, all depends on the state of wear of the components which is impossible to tell without a close inspection.

This is because you could easily over a couple of hundred plus labour bringing it back to life with new cassette, chain, cables, tyres.

Chainrings are particularly expensive to replace.

iwillhtfu

It's worth €100 all day long I'd imagine €150 would be closer to realistic price but if it were mine I'd be asking €200 sounds as though any damage is superficial.

CiniO

Lumen wrote: »

For used bikes of no particular character, all depends on the state of wear of the components which is impossible to tell without a close inspection.

This is because you could easily over a couple of hundred plus labour bringing it back to life with new cassette, chain, cables, tyres.

Chainrings are particularly expensive to replace.

As far as I'm aware nothing needs replacing. Chain and cassette would do with greasing.
Derailleur is good. Cables work fine.
Imo 1h labour service could bring this bike back to nearly new condition.

CiniO

iwillhtfu wrote: »

It's worth €100 all day long I'd imagine €150 would be closer to realistic price but if it were mine I'd be asking €200 sounds as though any damage is superficial.

I can buy it for 175 and wonder if that's not too much.

Cee-Jay-Cee

€175 seems reasonable taking into account your description of the bike and work it needs done.

Lewotsil

How do u mean as part of a fleet ?

Based on description I did think €175 is a very fair price

harringtonp

CiniO wrote: »

As far as I'm aware nothing needs replacing. Chain and cassette would do with greasing.
Derailleur is good. Cables work fine.
Imo 1h labour service could bring this bike back to nearly new condition.

Great thing about bikes is that you can take them for a spin and if they ride well, brake well and gear change well you know your on to a good thing if the price is right.

CiniO

Lewotsil wrote: »

How do u mean as part of a fleet ?

These bikes among other models were bought for bike rental, but were bit of a hit and miss so weren't used much, probably mostly due to them being more of a city commuter bike and not suitable for rural areas, where rental place is located.
Other models were used much more.

Based on description I did think €175 is a very fair price

I though it would be, but wanted to double check here, as I'm not really up to date with bike prices.
I have an option to choose the best one of the fleet, which as I said earlier was used very little probably never more than 200-300km. It spend most of its life indoors, with few days being outside on display on a rainy days (hence the rust).

Jimmy.

€175 way over the top, €100 max. You would be waiting a long time trying to sell it if you over paid buying it.

CramCycle

What is fair is what you are willing to pay. For me, it would be 100 as for 100 I would be happy to take it and use it, anymore and I wouldn't see the point. If you are willing to pay 300 and you will use it and not feel slighted, then 300 is its value.

Its alot like ebay, if no one bids, the item is worthless. Something alot of sellers on adverts could learn. Someone low balls them and they turn it into a slagging match, rather than just saying too low for me but thanks anyway.

Jimmy.

An item on eBay on auction will only make whatever it’s worth. I would say the bike on question if it went on an eBay auction would struggle to make €90.

iwillhtfu

Jimmy. wrote: »

€175 way over the top, €100 max. You would be waiting a long time trying to sell it if you over paid buying it.

Jimmy. wrote: »

An item on eBay on auction will only make whatever it’s worth. I would say the bike on question if it went on an eBay auction would struggle to make €90.

Give it a rest.

Jimmy.

iwillhtfu wrote: »

Give it a rest.

I won’t, I live in real world.

Wishbone Ash

Jimmy. wrote: »

An item on eBay on auction will only make whatever it’s worth. I would say the bike on question if it went on an eBay auction would struggle to make €90.

It's worth whatever someone is willing to pay for it.. If that's €500, then it's worth €500.

Jimmy.

Obviously.

CiniO

Jimmy. wrote: »

€80-€100.

Jimmy. wrote: »

€175 way over the top, €100 max. You would be waiting a long time trying to sell it if you over paid buying it.

Jimmy. wrote: »

An item on eBay on auction will only make whatever it’s worth. I would say the bike on question if it went on an eBay auction would struggle to make €90.

Hi Jimmy.

I value your opinion same as anyone else's.

According to you it's probably worth about €90, which is about 14% of original shelf price from 2014.

Would that be normal depreciation rate, that bike is worth only 14% of its original value after 4 years?

Or is that so high depreciation because bike was overpriced in the beginning - maybe just because it's a Kona brand there's a premium for that, but in fact similar bikes with similar components, but without Kona logo on it would cost only half of that original €650.
Or maybe you're saying someone would be mad to buy it originally for €650 shelf price, as it was possible to get it cheaper?

I'm just trying to understand the thinking behind that €90 value.

CramCycle

I presume Jimmys opinion is based on what you would get if you tried to resell it after buying it. I think you would still get 100euro for it but since you are buying it to use, this valuation is not much use to you.

My rule of thumb is 50% (325) off the bat and probably another 50% (160) for being used a good bit. After five years, unless a special interest bike, everything depreciates to 100euro if in good nick or less if not.

CiniO

CramCycle wrote: »

I presume Jimmys opinion is based on what you would get if you tried to resell it after buying it. I think you would still get 100euro for it but since you are buying it to use, this valuation is not much use to you.

My rule of thumb is 50% (325) off the bat and probably another 50% (160) for being used a good bit. After five years, unless a special interest bike, everything depreciates to 100euro if in good nick or less if not.

That's what I would actually like to avoid - to get a bike for €175 which I couldn't resell for that amount next day. If that was the case, that would mean I overpaid.

Does this bike being Kona brand make any difference, or at nearly 5 years of age (2014 model while now 2019 models start showing up on market) brand makes no difference and it's all due to condition?

harringtonp

CramCycle wrote: »

My rule of thumb is 50% (325) off the bat and probably another 50% (160) for being used a good bit. After five years, unless a special interest bike, everything depreciates to 100euro if in good nick or less if not.

Interesting. I've a Rose Xeon Cw from 2013 which I still use racing. I ensure it runs as good as new and headset,bottom bracket,cassette,chain,cables,front levers,saddle have all been replaced... some multiple times.

I'd never let it go for 25% of its original price !

CramCycle

CiniO wrote: »

That's what I would actually like to avoid - to get a bike for €175 which I couldn't resell for that amount next day. If that was the case, that would mean I overpaid.

Does this bike being Kona brand make any difference, or at nearly 5 years of age (2014 model while now 2019 models start showing up on market) brand makes no difference and it's all due to condition?

You have only overpaid if you paid more than you were happy to give for it. Can you get the same elsewhere for cheaper? What is your intention for the bike? If so, go elsewhere. The fact that you would appear to be buying it from a company, so long as they are not folding, you possibly are getting a short warranty, that would be worth more to you but not to anyone else you aim to sell it too. Kona is a known brand, helps the resale value slightly. The fact that is a townie / short distance commuter means that your selling to a saturated market. It depends on the day of the week you put it up for sale and who is looking. One month you might only get 100, others you might get 200. I have missed out on things here and on adverts where I would have paid far more than the asking, thats just life. If your buying it to resell though, I'd leave it, if your buying to use it, then its a good buy.

harringtonp wrote: »

Interesting. I've a Rose Xeon Cw from 2013 which I still use racing. I ensure it runs as good as new and headset,bottom bracket,cassette,chain,cables,front levers,saddle have all been replaced... some multiple times.

I'd never let it go for 25% of its original price !

Hence the special interest point. TT bikes, certain MTBs, "vintage" bikes, racers etc, will hold value differently.

I wouldn't let my racer go for anything under 80% of RRP, to me that is its worth but there is not a hope in hell if I put it up for sale I would get a penny over 50% unless the buyer really hadn't a notion.

CiniO

CramCycle wrote: »

You have only overpaid if you paid more than you were happy to give for it. Can you get the same elsewhere for cheaper? What is your intention for the bike? If so, go elsewhere.

I probably could get similar bike for cheaper allright.
But firstly my wife (it's for her) has already ridden that one and liked it (which is unusual as she's not that fond of cycling).
Secondly it's a Kona, so I'm even happy to pay slightly more for the logo itself as I'm probably a bit of a brand snob. (I ride Kona MTB myself).

The fact that you would appear to be buying it from a company, so long as they are not folding, you possibly are getting a short warranty, that would be worth more to you but not to anyone else you aim to sell it too.

No warranty. I'm working for that company, but for different departement so that's how I know about that bike.

Kona is a known brand, helps the resale value slightly. The fact that is a townie / short distance commuter means that your selling to a saturated market. It depends on the day of the week you put it up for sale and who is looking. One month you might only get 100, others you might get 200. I have missed out on things here and on adverts where I would have paid far more than the asking, thats just life. If your buying it to resell though, I'd leave it, if your buying to use it, then its a good buy.

Thanks.
That's all very informative.

CramCycle

CiniO wrote: »

I probably could get similar bike for cheaper allright.
But firstly my wife (it's for her) has already ridden that one and liked it (which is unusual as she's not that fond of cycling).

That would answer the question for me, you are always more likely to ride a bike you liked before you bought, that alone makes the bike more valuable to you than the second hand market, IMO

happytramp

Jimmy. wrote: »

An item on eBay on auction will only make whatever it’s worth. I would say the bike on question if it went on an eBay auction would struggle to make €90.

Probably, but nobody buys bikes on ebay. Postage is prohibitively expensive and you'd need to be lucky enough to be within collection distance of the seller. It's a bad example.

hesker

happytramp wrote: »

Probably, but nobody buys bikes on ebay. Postage is prohibitively expensive and you'd need to be lucky enough to be within collection distance of the seller. It's a bad example.

I suppose you mean bikes only worth 100 euro or thereabouts. People buy bikes on ebay all the time, myself included, and willing to pay for postage.

magicbastarder

harringtonp wrote: »

I'd never let it go for 25% of its original price !

i have a criminally underused 2004 hardtail stumpjumper. it's in astoundingly good nick, due to said underuse.
on paper, i'd guess it's worth a couple of hundred euro.

CramCycle

magicbastarder wrote: »

i have a criminally underused 2004 hardtail stumpjumper. it's in astoundingly good nick, due to said underuse.
on paper, i'd guess it's worth a couple of hundred euro.

I'll buy you a cup of coffee and 20squid, subject to inspection :pac: