Continuing the pleasant conversation over a cup of virtual coffee and a pasty, having met-up after a ride to the corner cafe'...
But what happens [to the value of an older model] when the current purchase price rises
This is a really good question, geo'! Over on this side of the pond, inflation does slightly raise the price of older bikes...but that increase in value is offset by the aging of components and drivetrains. Currently buyers generally don't place as much value on older equipment, figuring manufacturers are improving components yearly so older stuff can't be as good (I disagree) and 7-speed gets passed over for 9- or 10-speed in the buyer's value rankings.
Sadly, I've found component upgrades largely fail to increase the resale value by much...because they have also aged. Much the same holds true in the used-car market, where custom wheels and plus-size tires with minus-profiles increase value only fractionally.
And then there is always the debate about the extra dosh for a new one giving you peace of mind and a bit more of a "glow
There's a certain cache about "buying new" and a bike -- like anything else -- is truly "new" only once and only for the original buyer. I sometimes come across the same people on my 109-mile regular loop, and I notice they are often riding new bikes each year. I spoke to a gentleman early last summer about his, and he said, "Oh, this is my 'new' bike, the one you remember was last summer's". Since he buys a bike annually, I guess "new" lasts about a summer, each year. Though it sounds cliché, everything really is new only briefly, and only for the first buyer. As soon as one takes possession, the item becomes "used" to anyone else and...sometimes, even to oneself. I buy bikes rarely, so often find myself referring to one that is 20 years old as my "new" bike 'cos it is the "last" bike I bought. That's all changed with the recent Thorn ownership. The Nomad is my "new" bike, without doubt, and will likely remain so for the
next 20 or years.
And, yes, there is peace of mind to buying new. There is warranty coverage unavailable otherwise, and for a large purchase, this added security is worth something to a lot of folks.
Are they over priced or is it the poor economy and folk tightening their belts?
Probably a bit of both in these times, but the prices are still enough that I think buyers go through a "cost-plus" analysis and do valence-weighting, where they juggle the increment between used and new, and make the decision based on the incremental value rather than the absolute cost. They figure, "I'm paying x if I get this...but by adding a bit more, I get new". They don't look at the total so much as the increment.
And, too, there is something special about "New" -- It looks factory-fresh, and you get to put the first scratch on it and remember the occasion! You build a shared history together, and that counts for something when you're talking about a working tool that facilitates journeys. "People" (meaning also me) even anthropomorphize (bestow human characteristics on) their bikes, talking about "When we were in..." and "I remember that fall we took..." and it isn't a royal We but an inclusive one. Some folks (also me) actually name their bikes. Flipping that on its head, there's a bias against used for many people, one perpetuated by original sellers for commercial gain. The very word -- "Used" -- means the items has had use, placed on it by someone else; "New" is fresh and unblemished. Much of it is perception, rather than reality. I grew up hearing the phrase, "Don't buy somebody else's problems!". A car dealership across the river from me doesn't sell used cars...it sells "pre-owned ones". When I asked a salesman why, he shrugged his shoulders and said, "'Just sounds better". Doesn't to me, but then I've bought a lot of used things (generally not bikes) that worked out well, and after one "new" dog, every following pet was a "used cat", all equally beloved.
I guess they're worth whatever folks can pay.
Prices in the used market may well be a better refection of the actual value of an item. To a certain, the market has reached equilibrium, and values are more closely determined by what people are willing to pay, no longer influenced by hype and advertising that often result in inflated prices when new products are first introduced.
All the best,
Dan. (...Would "experienced" be a better word for "used"?)
