Author Topic: Is it mustachian to buy a luxury mountain bike for less than its resale value?  (Read 1573 times)

Fuzz

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Hey MMM crowd:

It's the end of summer in my corner of the Rockies which means fancy mountain bikes are steeply discounted. I could potentially get a 2014 Santa Cruz 5010, full carbon, in the "medium" build for $2300. The bike sells for $4600 to $4800 new (note: not retail--that's actually a little discounted since "retail" in outdoors gear doesn't really exist. Probably $5K plus is the "retail" price, which would have been marked down to $4600). The bike is in awesome shape, maybe 30 days of riding, and would be tuned including anything that the fork needed.

Having watched my local market carefully, I think that bike would sell used for around $3000 next spring and maybe $2300 for the next 2 to 3 years. Arguably, buying the bike doesn't deplete my net worth since it's resale value is more than I paid for it. The bike has a reputation as a premium, best in class bike.

Potentially I could buy the expensive bike and ride it for 2-3 years and sell it for what I paid for it. I would get a "free ride" which sounds mustachian. Of course, it would bring me such joy that I would probably not sell it at all.

I'm trying to rationalize this as a mustachian deal...it's a struggle. The bike is so damn expensive. It's probably (a) not mustachian and (b) still worth it??


Reddleman

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If you have the money and a reasonable expectation of getting the money back in the spring, no harm no foul.

I did this with my last motorcycle.  Bought it in the fall, spent the winter doing some enjoyable deferred maintenance, and rode it the next year.  This spring I sold it for a small profit even considering the additional parts, registration fees, etc.

It's easier to do this with things that have hit that flat part of their depreciation curve, rather than something so new.  The dangers I can see are that 1. you will break it (carbon frames are more prone to this than steel or aluminum) 2. you will like it so much you want to keep it.

stlbrah

  • Bristles
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If it is used properly I don't see why not. I didn't think this forum was against hobbies (besides watching tv and other time wasting activities), and you are getting it at a discounted price.

frugaliknowit

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I wouldn't be concerned about bike depreciation curves.  On a 30 day bike, you should have minimal wear.  On the older ones there's more risk of expensive worn parts.  I know in the city of Chicago, the used bike market is completely irrational and works nothing like Kelly Blue book.

waltworks

  • Magnum Stache
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Make sure the shop/Santa Cruz will offer a warranty on it that treats you as the original owner. Otherwise, get the bike. Forget the resale value, though - just ride the shit out of it and have a blast. That's the best way to get your money's worth out of a bike.

-W