Got a shock at cannons today, enquired about chopping my 6 month old 1200 gsa in for the new twin cam job,wait for it 8,750, the salesman never even looked at it ,Ithen pointed out about the thread they placed on here stating we will pay above book price,so when i finnished laughing he said il speak to the manager an try an come up with a better offer, not till next week tho as we are busy at the mo, sought of reminds me why went to vines last time.
depreciaton
- Thread starter harrybo1
- Start date
Ouch................£11k new to £8750 in 6 months
Mutley
Registered user
Maximum depreciation per day is in the first 6 months. 
Why would you want to change a bike that you've barely even run in
Forget about the 'twin cam' bollix and go and ride it
Why would you want to change a bike that you've barely even run in
Forget about the 'twin cam' bollix and go and ride it
Why would you want to change a bike that you've barely even run in
LUST.....................
Bikes and Women................no difference
Maximum depreciation per day is in the first 6 months.
Why would you want to change a bike that you've barely even run in
Forget about the 'twin cam' bollix and go and ride it
+ 1
they say you lose the "VAT" in the first 6 months.... so thats about right
11k - 17.5% = 9k ish...
I bought a Triumph 955 for £2,900 rode it for two years and sold it for £2,600 now thats what i call depreciation..
But as above if you want it and can afford it go for it
11k - 17.5% = 9k ish...
I bought a Triumph 955 for £2,900 rode it for two years and sold it for £2,600 now thats what i call depreciation..
But as above if you want it and can afford it go for it
Dave78
Registered user
Brought a brand new Citroen, for £13,650.. rejected it as not fit for purpose and was told at 2 months old they would only give us £10,500 trade price for it... Needless to say we got more
Selling a bike thats practically identical to the one you're buying and getting charged around £4000 for the privilege sounds a cracking deal to me 
If you that bothered keep your bike, buy a full Akrapovic system and a power commander and save around £2500.
Alternatively I'll give you £8751 for it
If you that bothered keep your bike, buy a full Akrapovic system and a power commander and save around £2500.
Alternatively I'll give you £8751 for it
Selling a bike thats practically identical to the one you're buying and getting charged around £4000 for the privilege sounds a cracking deal to me
Thought you were getting a TwinCam, Nick
Went to Clakes today and they offered £8000.00 for my GSA that will be three years old in June.
Thats a bit bit better mark, im going to keep mine now the only reason i fancied one was i went on bmw off road course last weekend bike was a twincam i liked that extra grunt in the lower gears an the smoothness, im gonna pimp mine up now.
motobiker
Registered user
not quite.. you lose the VAT the moment you buy the thing.
So.. actual depreciation on a bike that cost £1100 and then you're offered £8750 is £611.70
Doesn't seem so bad to me.
The moment you paid for the bike that money (£1638.30) went winging its way to the Chancellor.
The actual amount you paid for the bike originally was £9361.70
so the bikes lost 6.5% of its value. never mind eh.
When he bought the bike VAT was 15%.
it will work like this.
as stated above VAT goes instantly.
then expect £500 - £1000 depending in mileage.
then you have older model against new model i.e. if someone traded their 'new' bike it would lose the same VAT (but 17.5%) and the margin.
I really do not see the relevance of VAT to the second hand market.
It really doesn't matter how much of the price you pay goes on tax, first registration fee, the dealer, manufacturer, etc.
The value is determined by what someone is prepared to pay for a bike which is no longer brand spanking new. There is no doubt that the highest rate of depreciation is experienced the moment it is ridden out of the showroom but it has nothing to do with VAT.
As an aside, it is quite easy to find bikes where the dealer's net of vat price is higher on a second hand bike than a new bike.
It really doesn't matter how much of the price you pay goes on tax, first registration fee, the dealer, manufacturer, etc.
The value is determined by what someone is prepared to pay for a bike which is no longer brand spanking new. There is no doubt that the highest rate of depreciation is experienced the moment it is ridden out of the showroom but it has nothing to do with VAT.
As an aside, it is quite easy to find bikes where the dealer's net of vat price is higher on a second hand bike than a new bike.
Car and truck manufacturer's generally use a sliding scale of depreciation in the first 3 years of 30% - 20% - 20%.
The first hit is the biggest and will really hurt after 6 months......
The first hit is the biggest and will really hurt after 6 months......
We are talking about trade in values -- so VAT has everything to do with it - just look at a new bike invoice. - Vehicle + VAT
Yes a dealers secondhand bike may be priced higher than a new bike but to the normal person (non VAT registered) then it will still be cheaper than a new bike.
If you are a business and you are able to claim the VAT back then you would not be buying secondhand as the VAT element is much lower. i.e. VAT is only on the profit of the sale at this point not the whole amount as in a new bike.
I think 8750 seemed a reasonable offer if the purchase price new was 11k.
Regardless of opinion, it's very well known that you lose approx 15% off a vehicle as soon as you leave the showroom. The only time this isnt so, is when you're lucky enough to buy a really sought after vehicle.
Is the twin cam that much better??
Regardless of opinion, it's very well known that you lose approx 15% off a vehicle as soon as you leave the showroom. The only time this isnt so, is when you're lucky enough to buy a really sought after vehicle.
Is the twin cam that much better??
Trade in values are driven by the market which includes what profit the dealer wants to make and what a seller will px at and what the private trade is doing. It makes no difference to the dealer if he pays more than the net price of the new bike if the other factors are met as the dealer will only pay VAT on the profit element of the second hand sale (assuming it was a private purchase).
Are you saying if there was no VAT on a new bike then there would be no significant initial depreciation?
Correct. If the net price is higher then the VAT has not been "lost" the moment it is purchased.
That is a much wider question. You can't claim any VAT back on a secondhand bike unless, broadly speaking, it has only been owned by VAT registered entities. But you still might buy secondhand if it is cheaper than the net price of a new machine and there are other considerations.
Selling a bike thats practically identical to the one you're buying and getting charged around £4000 for the privilege sounds a cracking deal to me
If you that bothered keep your bike, buy a full Akrapovic system and a power commander and save around £2500.
+1
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