Used bike pricing
 

I'm trying to figure out some criteria for appraising an older bike, 6-7y old.
To keep things as generic as possible, what would somebody consider when setting a price?

These are the basic features:
carbon frame
handlebar, stem, seatpost alloy
drive: Shimano Ultegra 6800
brakes: rim
wheels: base stock AL
saddle: stock, base model
original price: around $2,500
mileage: probably in the 2k/year range

Bikes don't hold their value, so figure 25%-35% of its sale price.

Most times it's better to keep the old one as a spare for winter or wet riding.

Personally I would pay no more than 40% of the MSRP for that bike.

Like it or not, the brand name of the bike does help determine the resale value.

Have you ever tried to trade in your old car for a new one? I bet they needed to know what your old car is to give you a price.

CF bike with 6800? Why sell it?

Markets vary. East Outhouse, North Dakota probably doesn't have a lot of listings ... yours might be the only bike in the local classifieds all year .... but everyone is probably too practical to pay a lot. Somewhere in Cali .... lots of competition, but maybe more available cash. Where I live .... not many really nice bikes for sale but not much demand. People who are willing to pay $800 or $1200 would probably prefer to buy new. But ... you might get lucky ....

Check the local classifieds ... but sadly, I think you can expect to not get a lot of cash back.

But ... maybe due to the bike shortages thanks the communist China's virus, maybe you will find it a seller's market.

That's what I found on my most recent purchase. I recently bought a 2 year old bike that originally cost north of $10k for less than 30% of the original price.

I would consider the condition of the bike, service history, brand name, quality of components, location. Also the seller is a big thing. When talking to a seller I want to see they know what the bike is or at least they are genuine about it (obviously some people are selling for relatives that have passed or moved away or don't know a ton about bikes) however I do like a good passionate seller who cared for the bike. Also would love to know serial number to confirm it is real or at least not stolen.

A cheap generic carbon bike or a fake bike (a cheap knockoff frame with stickers from a real bike brand or some of the cheap online brands) isn't worth much compared to a known quantity.

Seller's abilities to market his bike in his chosen market. For example, the market in winter in Ada, Oklahoma will be different than the springtime market in Napa, CA.

Thanks for your input guys! I've left the brand out since for myself is not important at this point (beginner biker, no brand favs). But for full disclosure, it's a Bianchi Intenso model. Purchased in a LBS, so I don't doubt the origin.
I wasn't too clear about the "appraising" part: I'm actually thinking of buying this, not selling; however, the seller is a friend and asked me to come up with a price. He's an experienced biker, upgraded this year to a BMC etc.
From my price research online, hard to come up with a conclusion. There are too many variables involved even for similar bikes, ads are incomplete, model year is usually not listed, etc.
I was thinking around 25-30% of original price would be fair. Especially considering that bike will need wheels replacement soon (front hub is moving laterally, probably needs new bearings; rear hub developed a click which again I suspect bearings or at least the freehub).

I always to go Bicycle Blue Book to get a ball park number. Someone said BBB is hosted by performance bicycle with the intent to low ball people on trade in value. They do tend to give numbers on the low side, but it is better than nothing. What I find informative is how quickly new bikes drop in value.

Personally I'm not sure how to price bikes with carbon frames. Seems like that could go either way, either really help hold the resale or tank it for fear of the unknown. Not trying to start another carbon flame war but personally I'm not sure how to evaluate whether a used carbon bike is solid or not. Seems like knowing the owner should be a huge plus.

$1400

The prices on BBB are so low they are downright insulting. The only thing that reference is good for is the original MSRP and perhaps year of manufacture.

If it is 105 10-speed ... you are going to have to upgrade with Tiagra or upgrade the whole drivetrain ... I guess a new Tiagra cassette isn't a big loss by comparison .... I saw a 2015 with Ultegra (11-speed 6800) on EBay for $1700 so figure it might go for $1400 or $1500 ... and I guess shipping isn't an issue. (https://www.lavelocita.cc/la-velocit...intenso-review) (https://www.ebay.com/itm/Top-Conditi...MAAOSwRIJf6voV)

Price
 

So, you're saying the bike has 12-14,000 miles on it? If the wheels need to be replaced, and haven't already been, I guess I'd want to know the state of the rest of the components. At that mileage, you'd hope that it's had a few chains replaced, and a cassette or two. I'd suspect it would need a new chain ring in front as well, again assuming he's a typical roadie that lives in the big ring. If some, all, or even more parts need to be replaced, the value plummets, and should be pennies on the dollar. The oldest carbon frame I've had was around 20 years old, and was still in good condition. I had one shop suggest that I should check it periodically for soft spots, (this was a Trek, and supposedly they were known for this defect). I found none on my frame, but guess that is what I would look for/feel for if buying used carbon in the future.

See that is important. You don't need to have "brand favs" but brand does matter quite a bit. A Bianchi is vastly different than some generic bike bought on Alibaba with his Forty Thieves. Bianchi has history, quite a long history and probably knows what they are doing in terms of design and knows how to build a quality bike and also support it well. You aren't just buying a logo on the bike but everything they have done in their history and all the design knowledge and skills they have acquired through history plus any other heritage they might have. This is of course not to say someone new cannot enter the game with an excellent product but if you are buying used a known quantity can be quite important.

Ask your friend what he is looking for on the bike from you. He is selling it, therefore there is a big impetus on him to give you pricing. You aren't the seller and it sounds like you know a little about bikes but not enough to accurately appraise it well. Granted yes you are learning and that was not meant as a knock against you but you shouldn't have to set the price for him. If he wants to sell, he can give you a number and if you feel that number is good you can settle or go back and forth a little.

If it's 10 speed and needs new wheels, it's not even worth $500. New wheels will cost $200-300.

I've looked at that BBB site and found the 2014 model which looks like the one in question. Parts in description are pretty similar to what's on this bike.
I've replaced the chain and large chainring and cables recently.
In terms of overall appearance, paint has some scratches, brake levers also, so I assume some crashes or 'solid' encounters in time.
And yes I agree, seller (friend or not) should set a price. However, in this case, I'm supposed to come up with an offer.

Here is your offer, you offer to negotiate with him on a price he thinks is fair for his bike that he is selling to you. Do not accept his offer of you coming up with a price for his bike he is selling to you. It seems a little shady and with a bike that could be crashed and sounds like has been ridden reasonably hard and maybe not as well maintained as needed he needs to come up with that price. He knows the bike you don't, he is selling the bike, you aren't, this is entirely on him. Once he gives you a price you can then negotiate but beyond that it is not your job or responsibility. If you replaced parts on it he should pay you for the parts if he hasn't already.

The more I hear the story the more I want to pass on this bike. You might start considering that as well if he won't play ball in his own game.

$450-1200 depending on how much cosmetic damage there is and the condition of the components you haven't changed recently.
pretty wide range because what you offer is limited.


Bbb is trash. there is no reason to reference it for multiple reasons.

How much are you willing to pay?

How much of a new bike could you get for that much money or maybe a little more?

$1500 could probably get you a decent new bike---one which would already be in perfect condition, one with several thousand miles more life ahead instead of behind it .... possibly with new 105. Check out BikesDirect, Fuji, or Giant, maybe .... See what else your money might buy.

One thing about doing business with friends .... it can either work out well or poison the friendship.

+1

I'd pass on the bike. Given what the OP has said on condition, use, and specifically the wheels(should have been fixed long ago rather than being a current issue), for the money involved, buying a used-like-new or new bike would be a better deal. There's plenty of used bikes out there that have seen minimal use and are in near showroom condition.

That hub problem is a huge red flag. not because you need to replace it, but it tells the owner is not taking care of the bike and happily sells it with obvious flaws. what about not so obvious flaws? What about all the other neglected maintenance that will cause sooner replacement of parts?
I hope he disclosed the hub problem and didn't let you find out by yourself. I'd give him the benefit of the doubt and assume he doesn't know bikes, so may not be able to repair it or know about faults a lot.

Do you actually want it? or is it jsut a thing the friend wants to unload it, and got you interested? I'd find out all the flaws like the hub, and price out the repair. Deduct that from whatever 30% of the new price.

Also consider if you can do repairs yourself, or if you are an LBS person. if the latter, you may be better off with a new bike. Bike parts are reasonable, but labor is ridiculous. If wrenching is a hobby and enjoyment, the economics are different. If you pay an LBS $80/h to fix things, it is different.

+2
Personally, I would pass also.

Your friendship may get int he way of the negotiations.
Additionally, if the wheels are in need of repair, what else?
If you still feel comfortable negotiating for the bike, what condition is the drivetrain in, and the rest of the bike? Do you know how to inspect it?
You can get a really good, used low-mile bike for $1000-$1200.
If you must have it, I would offer $500 armed with the knowledge that it will need new wheels. Just like buying a car or motorcycle, the price of a used bike that needs work, + the parts to fix it better be significantly less that the repaired bike ready to go.

If that bike is a Pinarello it's worth more than a Trek. To your point.