Salvage Motorcycle
Many people shy away from considering a salvage motorcycle believing that all motorcycles, like cars are "totaled" by the insurance company because they are a mangled mess. I admit that some of them are. However, because new parts for motorcycles are expensive, it is often more cost effective for an insurance company to "total" the bike rather than to pay for those expensive parts - even if those parts are only being replaced for their "cosmetic value".
Savvy motorcycle buyers have been cleaning up in the auction salvage motorcycle market because of this one fact. Of course, when you are buying anything at auction it is a good idea to check out the bike personally. I have been burned purchasing vehicles at auction because I didn't do my due diligence and START THE ENGINE!
If you are buying online, it is still better if you can go to where the bike is being stored. Usually you will be allowed to preview the bike and sometimes even ride it, before you bid. So here are the basics of auction motorcycle buying.
1. Research your product. Know the NADA values, or if it is older than 2003, or a unique model, try Millers Classic Motorcycle Price Guide or the Japanese Motorcycle Price Guide, Another resource is just to Google it and see what others are paying for one with NO damage.
2. Once you know the street value of the bike, you need to inspect it. If you can't personally go look at it, maybe you can have a friend check it out. As a last resort, the auction company may be able to tell you the amount of damage. (They are legally obliged to tell you every piece of damage that they SEE).
3.Then look up the prices of parts you will need to fix the bike - if you have a salvage yard nearby you may be able to get some parts at a very reasonable price. Check the cost of restoring scuffed paint - or live with it.
4. Now is the time to calculate. Street value - parts - labor - expected profit - decrease in value because of it having been in an accident = top you are willing to pay at the auction. Example: Street value = $10,000 minus parts of $1,000 minus labor $400 minus profit $2600 minus decrease in value of $3,000 = $3,000 is the very most you would want to pay for this bike. This is reasonable.
5. On the day of the auction, don't get caught up in the frenzy and pay more than the value that you have established. If you don't win this salvage motorcycle, there will be another.
Want to make extra money buying and selling a salvage motorcycle? Wash. Rinse. Repeat!
