What’s the Trade-In Value of My Motorcycle?
Kelley Blue Book (KBB) states that trade-in value is “the amount consumers can expect to receive from a dealer for a trade-in vehicle.”
The higher your motorcycle’s trade-in value, the less you’ll have to pay out-of-pocket for your next motorcycle. So, it’s important to know your bike’s worth as well as how to negotiate.
Continue reading below to learn how to determine the value of your trade-in. And, afterward, check out this post for tips on how to negotiate when buying a motorcycle.
Step 1: Determine Your Motorcycle’s Base Value
We recommend using the Kelley Blue Book valuation tool. (NADAguides is also a great pricing resource. However, they do not provide trade-in value, only typical listing price.)
First, you’ll enter the year, make and model of your motorcycle. Then, you’ll see two options: trade-in value and typical listing price. Of course, you’ll want to select trade-in value.
However, if you decide you’d rather sell your motorcycle outright, versus trading it for another, check out this post on how to price your motorcycle using KBB.
Step 2: Add the Value of Additional Equipment
Like many motorcycle owners, you may have put hundreds or even thousands of dollars into your bike. You should factor these items into your motorcycle’s value.
Did you upgrade your motorcycle with a larger engine? If so, then you know that a new engine kit can cost anywhere from $1,500 to $4,000.
To calculate the added value of the engine, we recommend doing the following.
- Find the price of the original engine by looking up the price of its engine kit.
- Subtract that cost from the new engine’s kit price (because potential buyers will not appreciate you asking them to pay for both engines 😉).
Cost of the New Engine – Cost of the Original Engine = The Added Value of the Engine Upgrade
You should also use your discretion to discount the added value of the new/replacement engine depending on its age and current condition.
Extras and Upgrades
“But what about all my extras?!” Don’t sweat it. Kelly Blue Book has a section in which you can add on the value of upgrades.
For example, things like cargo racks, custom-painted gas tanks and navigation systems increase a motorcycle’s worth. So, go through the “Optional Equipment” list, and add up the total value of your upgrades.
This list is located directly underneath your bike’s trade-in value on KBB. Just click the drop-down arrow.
And, speaking of upgrades, it’s important to note that if your bike no longer has the factory equipment that it came with, such as its fairing or saddlebags, you will need to deduct the cost of those items.
The values of these items are also found in the “Optional Equipment” section.
Having Difficulty Pricing/Selling a Highly Customized Motorcycle?
Keep in mind that all of the money you put into customizing your motorcycle may not be reflected in its market value.
Everyone’s taste is different. So, the thousands of dollars of upgrades you put in may actually make your motorcycle more difficult to sell.
This means you may have to lower your price accordingly. But not to worry. We created this resource to help you sell your customized motorcycle with ease.
Step 3: Factor in Condition and Mileage
KBB states that mileage is not the most important factor when determining value; the condition is.
So, note that the trade-in value generated by KBB is based on a motorcycle that is in good condition with typical mileage for its year.
If your motorcycle is in excellent condition and has low mileage, you should increase its value accordingly. And, if your motorcycle is in poor condition (with or without significant mileage), you must also decrease its value accordingly.
Step 4: Do the Math
Use the formula below to find the final value of your trade-in.
Base Value of Your Trade-in Motorcycle
+ Value of an Engine Upgrade
+ Value of Extras
+ Discretional Added Value if in Excellent Condition
– Discretional Decreased Value if in Poor Condition
The Final Value of the Trade-in Motorcycle
Now that you know the value of your trade-in, you can estimate your out-of-pocket cost.
The Cost of the Motorcycle You’re Buying – The Value of the Motorcycle You’re Trading in = The Balance that You’ll Pay the Dealership
And, if this is your first time doing a trade-in, check out this post on the difference between selling your motorcycle privately versus trading it in at a dealership.
So, what bike are you trading in? And, which model is next on your bucket list?
Let us know below!