Home dealers push second hand bike prices up
 

There are some people, often pensioners, who like to make a little extra money to supplement their pension. Some of these deal in second hand bikes. They read the local for sale pages often. When they see a bike cheap, they quickly pick it up. Some even get bikes from the trash. On some bikes they may swap parts. They then sell these bikes at higher prices.

So when an ordinary average person looks for a second hand bike, on the rare occasion they see a cheap bike, it is sold before they have a chance to buy it. The only bikes they can buy are these more expensive second hand bikes from the home dealers. Those who don't know, think these are normal prices for second hand bikes.

In places where you don't have these home dealers, you can find cheap bikes. Where you have these home dealers, second hand bikes are expensive.

Other home dealers do this with computers. In some places, it is impossible to buy a second hand computer at a reasonable price. Only those with little understanding of computers buy them.

Some car dealers also snap up cheap second hand cars for sale privately. Some also sell the worst cars from home, not at the dealership.

The best way to combat this to report "vendors" or "individuals" who are clearly violating terms of service for your local "craigslist" or "gumtree". If someone is peddling a ton of stuff that clearly wasn't originally theirs and isn't listed as a "vendor", ban. Report them using the report button often.

The reason is if they register as a vendor you can filter them out of the results to individuals only.

We have a guy around here in the US in my city that does it and is registered as an individual, haven't gotten the ban yet........but probably soon.

I want to explain this, so some of those buying a second hand bike for the first time, understand that the prices the are asking are higher than they would be if you were buying from a genuine private seller. In some places they have a monopoly on the market, so all second hand bikes are expensive. Some people don't know how much is reasonable for second hand bikes.

Arbitrage
 

is the buying and selling of assets (usually financial instruments) by taking advantage of price differences in different markets. This is as common as pigeons.

I don't have any problem with intermediate vendors doing this, as their influence isn't the primary driver of market prices. Unless they come to dominate a very small local market, in which case they can drive up prices.

In my local (large) market, there are dozens and dozens of bikes available at relatively cheap prices. More than anyone could ever want or need. Very few are in fully refurbished, cleanly presented, truly ready-to-ride condition. This type of bike commands a premium price...and gets it.

..and some people build entire villages of straw people in their head to blame when they choose to not make some effort..more effort than some other people

"..from those according to their ability, to those according to their need.."

>>> i would push this to say that any conception of reality that can logically conclude that there is an artificially enhanced 2nd hand bicycle market populated by elderly profiteers is sorely in need of an intervention :commute:

I am the guilty one. I am a pensioner. I bought a Univega Alpina for $27 and change the second day of an estate sale after literally hundreds looked it over. . I put a set of tires on it . I cleaned it up nice and bought a set of Salmon brake pads. If I don't find someone to gift the bike to I might consider flipping it for $30. I found the estate sale on an old computer that is the only one I own.
I think the OP needs some time out riding. Just my opinion of course.

You're certainly welcome to get in on this sure fire get rich quick scheme.

Only time this is an issue if someone is covering up a problem that exists.

Otherwise it's an open market. There are always good deals to be had if you want them, you just have to keep your eyes open and you'll get what you're after.

Plenty of people do this flip for a profit on all sorts of items. I've had a go myself with varying degrees of success. Unfortunately I wasn't that good an lost more than I made as sometimes the item would be worth more, but the cost of parts would eat into the profit. But I was only doing it for fun and once I ran out the small amount of money I was playing with for it I moved on.

What they are doing is finding used bikes for below what the second hand market will pay and fixing them or flipping them at the market price. If they‘re able to sell the bike at an ‘expensive’ price that is what the local market will bear for used bikes and that is the fair price of a used bike. The same situation exists for a lot of other used goods, but you or I don’t have enough expertise to see that happening in, say, used watches although it certainly does.

If you don't like the prices in your region and you find yourself unable to snatch up the good deals quickly enough, then you probably have the following options to consider:

1. find a good deal in another region that's worth while for you to go to
2. take time off work and invest that time into responding to local for-sale ads
3. find a less desirable bike that needs some work to fix it up
4. find a more expensive fixed used bike that's more conveniently available and pay the premium for your convenience and someone else's investment

I understand the sentiment. It's been a while since I checked, but there was one here for sure, and a few others I suspected. They certainly don't drive the entire local market up, but it is a pain browsing through all their postings looking for one of interest from someone just cleaning out the garage. Many for 200+ with minimal polish, seemingly just trying to sell on brand recognition alone. I've seen rough looking Cannondales listing around 300. Still, I managed to find a Univega Gran Premio at what was a reasonable price to me last summer that has become my favorite. In my old age I just like to cycle through the bike brands of my youth, while I have one in hand it's just a matter of periodically looking until the next of interest pops up.

Ahhh get off my lawn

Maybe they are taking cheap bikes and fitting them with shiny bars that can’t possibly be aluminum. Probably ti. That would justify inflated prices.

I have long suspected but never really fully understood why the used bicycle market is so competitive. But now my understanding is complete and it all makes sense now.

I read thru this a few times and am not sure why it was posted.

Oh noes, some are even doing it with computers?!?! :lol:

If the bikes you’re referring to are cheap to begin with (or even from the trash) then the people who are flipping them are likely people who are making them rideable and better as a result. Nobody is forced to buy anything.

There’s also no reason that you can’t go snap up one of these inexpensive bikes before this rapacious predator baby boomer snatches it for his heartless capitalistic scheme; you’re just not looking or acting quickly enough.

Tinkerer types often have the spare time & parts to patch bikes up cheaply for non-mechanical buyers who don't have the time & skill to repair used bikes. A local guy had a house with all sorts of fruit trees & such, also sold fixed-up kids' bikes. Seems like profit wasn't the main motive, he might have made $10-$15 max on each bike.

God bless capitalism! The market drives the demand. The refurbishers provide the supply. Anyone with the skills can do this also, and nobody can stop you.

"Flippers" are just part of life.

I can remember when Dad was upgrading the pickup long ago, the dealer wanted to buy the old pickup for his "cousin". I have no idea whether the story was real or not, but I've learned not to trust used car dealers one bit.

I really don't have a problem with someone who invests time and energy into "Value Added". Good tuneup, greasing, new bearings, cables, seat, etc. But, I find it annoying those that simply buy cheap (perhaps try to bargain down), then flip and raise the price while doing absolutely nothing to the bike.

I haven't done much selling, but will try some selling shortly. Cars? I'd be happy to give a great deal to a struggling college student, but don't want to deliberately try to give someone a good deal only to get it flipped for profit.

I'm no pensioner and I do this. It's called flipping bikes. But I never buy them, I just pick them up off the street before the junkman does, I always ask the owner If I can have it first. If it's trashed and I find it in a neutral place, I just take it, get it working and get it sold.

It's a nice extra buck here and there. Sometimes, I'll just dismantle the whole thing and cannibalise it for ball bearings and other parts and dump the rest if it's too far gone.

Kret :)

I must be an extraordinary person. I've bought all my bikes from flippers, usually for around $200-$250. Heck, I bought from the same bike flipper twice, a year apart. I got a good deal. Presumably they made enough to cost their costs. Nothing to complain about.

It takes a certain temperament to enjoy buying and selling used items, along with the chattering, haggling and dickering over prices. Some folks don't enjoy that, so they're more likely to feel ripped off. For some of us it's more about the journey and opportunity to shoot the breeze.

Sure, it's nice to snag a real bargain occasionally. But I don't feel particularly good about paying too little for something a seller didn't recognize the value of. Especially if they burned their gas money and spent time cleaning it up or making sure it's safe and ready to ride.

Quit your lying! ;)

This is commonplace across pretty much everything to be honest. Golf clubs? People buy cheap sets all the time, clean them, install new grips, then resell for profit. Instruments? Same thing - new strings and pickups on guitars, or new heads on drums, etc along with a good thorough cleaning. It happens. Still plenty of deals to be found as long as you take a few minutes to look.

As someone soon to be 72, I think I found a new business only seniors can do. I'll buy something cheap, sell it for more and keep the profit. What a unique idea but why didn't someone think of that sooner?