Depreciation on "exlusive" frames and bike choice

[Snowmen]

Hi guys,

I can get De Rosa bikes with "deals" which end up being very advantageous (well under the price on Belatti) but I am hesitant because of the still very high price. Basically two things are worrying me:

1) How much value do rare bikes like De Rosa's lose over the years? I mainly ask because if it would be possible to sell the bike back in a few years for roughly what I payed or not too far below, this is going to be a no-brainer.

2) Would you say Record to Super Record is worth 530$ and would you say going from a King XS to a Protos is worth 610$? I have read that Super Record is mostly identical to Record outside of the weight and cranket which is supposedly amazing. Regarding the frame, my guess is that the Protos would keep a lot more of its value since it's made in italy and much more exclusive whereas the King XS is nothing special outside of being a De Rosa. Also, the Protos should be a bit lighter and MUCH stiffer.

Can't wait to hear your opinions and thanks for your time!

Edit: Changed the price differences to put them in USD instead of CAD.

[Calnago]

If you're looking for an investment you should talk to your financial adviser. I highly doubt anything in the bicycle industry will end up in your portfolio.
If you're looking for something to feed your soul, then only you can answer that. You can get a perfectly fine bicycle for $2k that will do everything a $15k bicycle will do.
At a certain point, the added dollars for something are most certainly not "worth it" in terms of performance or resale value. Law of diminishing returns and all applies here. Sounds like you really want the nicest stuff but the penny pincher Mr. Practical in you is saying "Don't do it you idiot". We all have our vices. Pick yours.

[sawyer]

Bikes don't keep much of their value

Perhaps sought after Colnagos in really good condition hold a certain %age, but not much else mainstream

The only exception to this was a period a few years back when new prices were rising rapidly, and it was possible to sell stuff bought a few years before for what you paid for it, more or less ...

De Rosa won't be much different to anything else

[wheelsONfire]

It seems second hand value drops rather quickly, especially when a new model appears.
I doubt any expensive bike could ever be considered a good investment if you look at second hand value.

For fun i looked at what i would get if i trade my Vial EVO in. Honestly, dealers are not interested.
Without going in deeper at this, i am only lead to conclude that the bikes value is what you get for it.
If you find someone who pay what you ask, congratulation.
Personally i think all expensive components and bikes are not or should not be considered a good deal if you talk second hand value.
Might be if you sell the latest and greatest when it's smoking new and hyped.
When this all calms down, interest has worn off.

[Snowmen]

Because of the price I'm getting, it becomes a bit of a no-brainer as long as I get at least 35% of the bike's value back upon resale. At 50%, I break even.

I'm obviously not looking for a good investment. I'm trying to get a top of the line bike I'll be able to enjoy for a few years without it being a completely ridiculous purchase. Obviously, I wouldn't even consider it at MSRP or even dealer pricing. I already own a lower-end De Rosa and just love them, hence my interest.

[stockae92]

I thought I was on a Rolex watch forum, people always ask which watch is a good "investment".

Calnago said it already, for ROI, talk to your financial adviser. You can't ride your Apple stocks of mutual funds though. Ok, they are different kind of rides

[AJS914]

#1 This is why I buy used. Bikes depreciate enormously. The higher they start the farther they tend to fall. I bought my $6000 retail C59 for $1400. I'll risk an out of warranty repair and maybe I'll get a custom paint job some day but I'll still be way ahead.

Super Record is not worth $500 more than Record and Record is not worth $500 more than Chorus. I'm sure Potenza or Athena even offer better bang for the buck but I won't go there. Anyway, Chorus functions identically to the top groups minus some bling, less carbon, and a few missing Ti bolts. Chorus costs $1000 less than SR and weighs 200 grams more. Buy a weight weenie brakeset and you are close to the weight of SR. Also, a lot of the weight savings in SR is in the cassette. Lots of people buy SR or Record for the bling but run it with a Chorus cassette to save $200-300.

[mimason]

Because of the price I'm getting, it becomes a bit of a no-brainer as long as I get at least 35% of the bike's value back upon resale. At 50%, I break even.

I'm obviously not looking for a good investment. I'm trying to get a top of the line bike I'll be able to enjoy for a few years without it being a completely ridiculous purchase. Obviously, I wouldn't even consider it at MSRP or even dealer pricing. I already own a lower-end De Rosa and just love them, hence my interest.

I'll take a shot at financial advising on a straight line, no opportunity cost, using simple 0% interest model assuming you can put food on the table and shelter family and no regard to retirement funding:

So if you can buy a 10k bike for 5k and be able to sell it for $3.5k you are good? This means you get to ride it for x years for $1.5k excluding maint. and upkeep. Assume you ride it for 2-3 years without crashing that's $500-750 per year to own for $41.67(3 years) to $62.50( 2 years) per month.

Yeah, that pretty good cost of ownership for a high end bike. You can do the math at other increments like 20-25% and deciding how much emotion and fun is worth.

[RussellS]

Because of the price I'm getting, it becomes a bit of a no-brainer as long as I get at least 35% of the bike's value back upon resale. At 50%, I break even.

50% resale price is a good ballpark figure to use. I'm confident to say you can get 50% of your purchase price 5 years later on a nice, expensive bike. Beyond 5 years and you may be closer to 33% resale price. I'd say 25-50% resale price is a solid range for almost all good bikes from 1 to 20 years old.

[Camilo]

Bikes are not investments. They are items that are used and afforded based on current price and projected upkeep - not held for future value. Do you consider resale when you buy other pieces of hobby or recreation equipment?

Buy a bike you like and can afford and be done with it. The present factors (liking the bike, affording the bike) are what you should be considering. If you can afford the discounted price and want the bike, I can't imagine why you're over thinking it like this by guessing - or worse yet, having strangers guess - about the unknown future.

[kgt]

+1
My advice would be to buy a frame you love and you would be happy to keep for 5-6 years. That's the only 'investment' you can make.

[KidKarbon]

My mate sold his Merak last year and lost loads on it.
DeRosa is often discounted in the UK by companies like wiggle. not a cycle brand that has a solid resale value, but then again few cycle brands really do.

[tarmackev]

I would say no bikes are "exclusive" these days.
I can buy one right now sat in my chair.


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[beeatnik]

60% true depreciation. It's a buyers' market.

[Snowmen]

Of course, the bike will definitely lose value, that's a certainty.

Two other things to consider:

-I can also get Cervélo's and Specialized bikes at roughly the same price. --> Would you say the Protos is as good or better than a Tarmac S-Works or R5 which would be cheaper?
-Until about a year ago, there was no canadian distributor for De Rosa so they are extremly rare here. I've honestly never seen one other than mine (an R838) --> How would that affect resale value?