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Author Topic: Depreciation scares me  (Read 2948 times)

Pprior

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Depreciation scares me
« on: March 14, 2014, 10:30:44 PM »

Background: I'm mid 40's rode a 400cc honda back in the 80s for about 6 years as primary transportation but haven't ridden since. Considering getting a motorcycle and love the idea of electric.

Cost however is scary. My other consideration would probably be a smaller BMW touring bike which would give me range benefit. The biggest concern I have with current zero (considering the ds) is that I have trips that are about 200 miles highway and so I couldn't use it there

So in a few years (3-5?) I assume battery technology will be there for that kind of trip. But the trade/sale value of the 2014 will then be probably tiny - 10-20%?

Compare with value retained by the BMW over that time and I will be likely losing many thousands

Is my thinking off?  Ultimately is this just a luxury purchase?  Do most of you buy a new model every few years?  These seem more like disposable consumer goods like computers which doesn't fit my thrifty nature well.
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dkw12002

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Re: Depreciation scares me
« Reply #1 on: March 14, 2014, 11:14:41 PM »

Depreciation is a problem on these bikes due to rapid innovations as you know. The 2011 Zero S and before had small batteries, brushed motors (with questionable reliability), and a top speed of 65 mph or so. 3 years later the same model is greatly improved with a newly designed brushless ac motor, 95 mph top speed, much larger batteries, etc. This made the 2011 nearly obsolete. 2012 was when there was a huge improvement in design and capability. Since 2012, the improvements have been less dramatic and depreciation is a little less dramatic. I own a 2013, but if I owned a 2011, I would trade it in. If I owned a 2012, I would keep it rather than go with a new 2014. The way to decrease your costs with these bikes is to run them a lot. Put many miles on them...then your per mile cost goes down. If you commute say 40 miles a day, that's easy to do. Also if you just like to ride a lot, it will put miles on the bike. I don't think it is a good investment for someone who just rides 1000 miles a year, but if you ride 20,000 miles a year, then the depreciation and initial cost are much less significant.

 If you want a good, but cheap commuter and touring bike, look at the Ninja 300. It is a remarkable bike considering the price. If it is like the Ninja 250r it replaces, the depreciation will be about the lowest in the industry.
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vchampain

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Re: Depreciation scares me
« Reply #2 on: March 14, 2014, 11:27:03 PM »

If you intend to sell the bike, then e-bike can be an issue. But
   a) Smaller models (XU) make the investment less risky
   b) The pleasure is different - if you can afford this differenciation
   c) The second hand market will probably develop as the market extends

Plus the high depreciation could play in your favor : if you are cost conscious, you should look for a bargain price on a used Zero. The more people do this, the highest the second hand market will be !

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WindRider

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Re: Depreciation scares me
« Reply #3 on: March 15, 2014, 12:33:28 AM »

If depreciation scares you don't buy ANYTHING new that has tires and an engine.   It all falls off a cliff for resale.

If it is a big issue look on the used market.   There are some great deals now on ZF9 DS or S models and they are great motorcycles.
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Pprior

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Re: Depreciation scares me
« Reply #4 on: March 15, 2014, 12:40:54 AM »

Typically I manage depreciation costs by keeping vehicles long enough for it not to matter as much. But I see upgrade fever being much more an issue with these vs a traditional ice model
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WindRider

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Re: Depreciation scares me
« Reply #5 on: March 15, 2014, 12:45:48 AM »

If you can meet your range goals with a current model upgrade fever should not be much of an issue.   The motor/controller side of the equation is mature now and these bikes are great motorcycles with excellent ride and control characteristics now.   A 2012 ZF9 will go a long ways for most riders and any 13 or 14 will go farther.

More range will come but it is going to be a while I am guessing.
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Pprior

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Re: Depreciation scares me
« Reply #6 on: March 15, 2014, 12:46:25 AM »

I don't think older models would have the range I need as well. I've been following for several years and the 2014 is the first year that would meet minimum needs
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protomech

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Re: Depreciation scares me
« Reply #7 on: March 15, 2014, 02:09:00 AM »

I guess you're looking at the ZF14.2. I also guess you're looking at frequent riding (where an electric bike makes a lot of sense), as opposed to only long weekend trips (where an electric bike doesn't, IMO).

Better and cheaper batteries will help in the future - in particular large packs that can accept a high-power charge rate - but production bikes are presently limited by a lack of fast-charging infrastructure. That's something I would expect to see develop further over the next several years, as hopefully the stupid CHAdeMO vs J1772 fight will cease to become a distraction.

Consider what would be better: a bike with 106 miles of highway range that charges in 10 hours (current ZF14.2 + 20%) or a bike with 88 miles of highway that charges in 1 hour, assuming charge points were well-distributed and convenient.

I agree with dkw12002. Figure out how many miles you're likely to put on a bike, look at estimated costs for both your desired gas and electric bikes, figure out how much value you place on the unique characteristics of each bike, and then see which works better for you.
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kensiko

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Re: Depreciation scares me
« Reply #8 on: March 15, 2014, 02:16:56 AM »

I did have this dilemma. But here in Quebec I could not find a used Zero for sale. Buying used vehicle is definitely the best way to save money, if you know how to evaluate the vehicles you are looking for. In my case I bought a Prius 2010 180000 km for 12500 CAD$, it was really cheap here. I knew I would have some repairs to do in the following months and now I have 2 front wheel bearings to replace (I do it myself with my father). Even with those, the car is still a bargain.

So, if you don't want to spend additional money for the thrill of an electric vehicle, you should definitely look for a used Zero (2011, 2012). If you like it you could then, in 2015, buy a Zero 2013 or 2014. This will cost a lot less than buying a new Zero 2014, I'm pretty sure of that.

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Pprior

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Re: Depreciation scares me
« Reply #9 on: March 15, 2014, 02:27:48 AM »

My use would be primary short trips of 10 mi or so one way. Weekly or twice weekly of up to 45-60 mi one way. Intermittent desire for 70-90 mi trips which current models wouldn't provide. I don't have time to charge enroute.   Where does one search for used models for sale?
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NoiseBoy

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Re: Depreciation scares me
« Reply #10 on: March 15, 2014, 03:05:32 AM »

To be honest Pprior, as much as I love EV's and would recommend one to anyone, if your primary concern is value for money you are unlikely to be satisfied judging by your monthly mileage.  dkw hit the nail on the head, get the miles in or look elsewhere.
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Zero.DS.Sweden

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Re: Depreciation scares me
« Reply #11 on: March 15, 2014, 03:38:30 AM »

If you count buy a BMW but if you listen to your heart buy a Zero and get a big smile on your face :-)
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Pprior

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Re: Depreciation scares me
« Reply #12 on: March 15, 2014, 08:59:02 AM »

It's hard because nearest dealer is a three hour drive so I can't easily just get a feel for the electric bike. How does the ds do with a passenger on back? 
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Burton

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Re: Depreciation scares me
« Reply #13 on: March 15, 2014, 09:07:22 AM »

When I calculated out the cost of the 2013 S 11.4 I was comparing it to a 'new' used ninja 250 to replace mine which has about 50k miles on it.

If I include my time in the calculation in relation to maintenance and prorated that time the electric bike's cost was surpassed by the ninja 250 in 5 years of riding if riding 13k a year.

Frankly I didn't expect this at all and I went easy on the estimated time I spend working on my bike. If you would like I can duplicate the google drive spreadsheet for you to edit and you can enter in your own values to see what comes out.
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Pprior

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Re: Depreciation scares me
« Reply #14 on: March 15, 2014, 09:24:30 AM »

Is that based on reliability or normal routine maintenance?   Not a mechanical kind of guy. I don't want to work on a bike just ride it. I assumed a new BMW cruiser wouldn't need any routine tinkering.
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