Depreciation of Electric Bikes

One of the things that makes selling a used bike different from selling a used car is that the bike has to be the right size for the buyer. Making matters worse for e-bikes, they're tricky to ship, which further limits who you can sell them to. It shouldn't be, but it's harder for the average buyer to evaluate a bicycle's condition.
 
I've had my Spitzing & Bultaco Brinco for some years now, 5 at least I think and the batteries are still going strong. I ride every day, everywhere. I don't have a car so they get a lot of use.

I think that if you buy a used electric bicycle you should expect to purchase a new battery given that you have no idea what the current condition is of the one that comes with the bike. Everything else can be inspected visually and replacement motors are not that expensive to buy if needed.

From my experience there is a whole lot less faffing around with ebikes from ebike manufacturers than home made jobs. With home made I found it was endless tinkering and the cost was not that much different but with much higher risk of things going wrong. LIPO batteries turned out to be a nightmare.

If you buy a cheap ebike and use it lots you have to expect to lose a good percentage of what it costs if you manage to even sell it that is. i feel I am in a good position to sell due to the battery being not worth nearly as much as the bike. Someone gets a nice bike that works fine and if they replace the battery then they practically gave a new bike for much less than what I paid.

Electric motors are pretty good. Think about washing machines and they mileage they rack up.
I had a Bafang gear hub motor fail at 1,600 miles. Thankfully the company stepped up, but it was after the warranty period was over. Nothing about quality can be assumed on a used eBike.
 
I see the steep depreciation as an opportunity to save... take a look at the almost new EBikes available on the BBB website.

I have purchased a few new old-stock EBikes with zero miles on the odometer for 25%-50% of the original retail value. ;)

 
Was curious of people's thoughts on resale values and found this thread.

I think we're at a point where the tech isn't changing as much, and that's less of a factor going forward.

But one thing that's different about e-bikes beyond the battery factor is that there is such a huge price chasm between the popular DTC brands like Rad and Juiced, vs the name brands. If you're cheap enough to buy a used ride (which I've done for several pedal bikes), you're probably not anxious to pay this huge name brand/retail premium. DTC is also more efficient because it means they have centralized control of stock, preventing prior model years from accumulating in every little bike shop.

For regular pedal bikes, the premium of retail over DTC is more like 25%, not 100%+. I'd be curious to see how e-bike values depreciate at each price level.

Also replacement LBS brand batteries are ridiculously expensive. Manufacturers everywhere hate used markets, from which they usually get no profit, and so the industry has been successful in heavily undermining used sales. The problem is customers aren't usually considering the cost of replacement batteries when buying a new e-bike.

4210 gets at this somewhat:

The reason many e-bikes 'depreciate' so fast, has nothing to do with the batteries, but more to do with the fact that the vast majority of them are way over-priced at between $2600 and $12,000 for what you actually get. In fact, most that are priced over $3000, when you compare what's really on them, are not any better in quality of components, than a solid one priced at $1800. The bigger players like Pedego, Easy Motion, Stromer, Haibike, and so on, are demanding a hefty premium for their 'brand' and marketing. Not to target Pedego, but you can find virtually their exact same e-bikes at Asian factories that sell direct. The costs in USD are about $550 to $700 for e-bikes that Pedego sells for $2600 to $3400. Those factories build and sell in qty, but they do allow samples in smaller quantities. They are not set up to sell to the consumer, but just using it as a reference point to what it actually costs to build these. Sure you add some for shipping, which by sea is dirt cheap especially in any meaningful quantity, and then cost of customs and unloading. Maybe that adds about $60 to $100 per ebike at most. The market is an excellent 'weighing' mechanism, in that it is telling you that you paid way too much, if you can't sell it for anything close to its original sell price when new, if it's been used for a few months or even a year. Cars are the same way, and often worse in the first years, but people derive far more utilitarian value from a car, and usually can keep it for at least 10 years. Obsoleted by new technology advances, and they also extremely high prices. They get or take what the market can bear, but keep in mind that only goes so far, and thats why you have more than 30% of car purchases today coming from subprime buyers, with an absurd 7 year loan term. They are upside down almost the day they drive it off the lot. But then thats why too, the industry has such horrid boom and bust cycles. If you think of the utilitarian value of the ebike, and how often you will use it in your part of the US, in a 2 season area, where winter stinks, and late fall or early spring stink too in terms of temps, then you are probably not psychologically going to be willing to spend as much, as someone who can use it year round in places like FLA or AZ, or CA. Most seasoned IBD's who have been in the bike business for years, smell this stuff from a mile away and that's why they won't touch e-bikes with a 10 foot pole. Besides being a huge capital outlay, for fewer bikes, the margins aren't any better with e-bikes than with regular bikes. They can see the rapid technological obsolescence too, so the risk from season to season is quite high of clearing inventory. I have to laugh at these jokers who have 10,000 and 12,000 SF e-bike sales facilities who think they will remain a going concern. They will HAVE to discount the heck out of their ebikes, to make enough inventory turns to cover their nut for the size facility, limited buyers, and the infantile nature of this market. Asia and Europe view ebikes far differently, and require bikes for many of their needs, where here its just a recreational pursuit, when you have cars to get you around.
 
The market is now saturated. Many jumped on the bandwagon with electric bikes and found they don't ride like they thought so there is a glut of machines out there that are not being used.
They will sit around for a while, batteries deteriorating and they will be sold for pennies on the dollar.
 
Was curious of people's thoughts on resale values and found this thread.

I think we're at a point where the tech isn't changing as much, and that's less of a factor going forward.

But one thing that's different about e-bikes beyond the battery factor is that there is such a huge price chasm between the popular DTC brands like Rad and Juiced, vs the name brands. If you're cheap enough to buy a used ride (which I've done for several pedal bikes), you're probably not anxious to pay this huge name brand/retail premium. DTC is also more efficient because it means they have centralized control of stock, preventing prior model years from accumulating in every little bike shop.

For regular pedal bikes, the premium of retail over DTC is more like 25%, not 100%+. I'd be curious to see how e-bike values depreciate at each price level.

Also replacement LBS brand batteries are ridiculously expensive. Manufacturers everywhere hate used markets, from which they usually get no profit, and so the industry has been successful in heavily undermining used sales. The problem is customers aren't usually considering the cost of replacement batteries when buying a new e-bike.

4210 gets at this somewhat:
This is definitely an old thread, but never an old topic!

I think a lot of e-bike buyers don't know or care about the difference between a Rad/Juiced/Aventon vs a higher end bike. Are you paying a premium? Depends on where you shop. I wouldn't pay the premium, but I've primarily only purchased BH, Haibike and Bulls (in that order). Oh I take that back - I was an original Radrover indiegogo supporter, which at the time you simply couldn't get an electric fat bike from almost anywhere.

The lower end bikes are definitely a case of getting what you pay for though. Budget parts all around - I'm guessing you could replace every non ebike part on a rad bike for under $100. But if it has been 20 years since you've ridden a bike, what would it matter?

As to resale, with the market soon to be saturated with owners that find they don't ride as much as they want and don't have the space for a bike (or insert whatever reason), the low/entry level bikes do retain at least closer to their original value, primarily because they were cheap to begin with. Unfortunately for name brand/bike shop ebikes re-sale has to compete with the low end of the market. Yes, that means they lose a lot more of their MSRP/sticker price value...which means you either suck it up, or find a dealer that sells at volume discounts (check my post history to figure out where I have bought every bike, except the radrover mentioned above!) I've probably sold a half dozen bikes at this point (currently we have 5 in the house) and I'm probably only down about $1-1.5K in 8 years of ownership.
 
They will sit around for a while, batteries deteriorating

li-ion batteries don't deteriorate over time when sitting, unless you are doing something dumb like leaving the bike out in the snow or in a metal shed in the desert.

Without question though, its a buyers' market with regard to used ebike prices. If you wanted to sell one and get good money for it, you should have done so about in the middle of the pandemic.
 
On there being a buyers market for used right now - I disagree. It really depends on which market - geographically and what kind of ebike you want. You have vastly more choice when buying new, and discounted new bikes can come within striking distance of posted prices on craigslist etc. I imagine areas with good bike trails/lanes will have more durable demand, as people continue to adopt ebikes for transport. But yeah if you're in some suburban area with bad bike lanes and will take any lectric or rad, then the buyer has more power. I doubt anything will come close to the 2020-2021 market for sellers, that's just a once in a lifetime extreme.

Pxpaulx, I checked those brands and they either don't have what I want or cost $4k+. I got a $1.1k torque sensor 800wh class 3 commuter new at 35% off (from juiced). Even if it does nosedive 50% in value within my extended warranty period of 3 years (I expect more like 30%), it's nothing in absolute terms vs what a $3-4k LBS bike would.
 
On there being a buyers market for used right now - I disagree. It really depends on which market - geographically and what kind of ebike you want. You have vastly more choice when buying new, and discounted new bikes can come within striking distance of posted prices on craigslist etc. I imagine areas with good bike trails/lanes will have more durable demand, as people continue to adopt ebikes for transport. But yeah if you're in some suburban area with bad bike lanes and will take any lectric or rad, then the buyer has more power. I doubt anything will come close to the 2020-2021 market for sellers, that's just a once in a lifetime extreme.

Pxpaulx, I checked those brands and they either don't have what I want or cost $4k+. I got a $1.1k torque sensor 800wh class 3 commuter new at 35% off (from juiced). Even if it does nosedive 50% in value within my extended warranty period of 3 years (I expect more like 30%), it's nothing in absolute terms vs what a $3-4k LBS bike would.

100% agreed! I've only once ever paid more than 50% of msrp for all of the bikes I've owned or own (brand new out of the box). I couldn't stomach the full price of any of them myself.
 
'buyers market' means that supply exceeds demand and as a result prices are depressed. That without question is the world we're in now. New units are discounted. Used prices are pushed down accordingly.

I know of one well-known name brand who cancelled a 50,000 unit order from Bafang *after* their company name had been put onto the motor casings (they were melted down and I am sure the buyer took a hit; but not as bad of a hit as they would have if they had paid full price for the motors they no longer needed).

I'm also friends with multiple bicycle retailers who are literally inundated with sellers trying to get them to carry their bikes.

Its a buyers market. Which sucks for me as I am a seller with two cargo bikes I want to put up for sale.
 
I have been curious about ebikes selling for $3K+ when well-regarded feature-laden brands like Lectric sell for $1K. I assume the expensive ebikes offer details that appeal to certain buyers. Nonetheless, in my local Craigslist there are several Lectric 2.0 ebikes (last year's model) selling for $800-900. Not much depreciation, perhaps because they were inexpensive to begin with AND have had lots of positive press.
 
I have been curious about ebikes selling for $3K+ when well-regarded feature-laden brands like Lectric sell for $1K. I assume the expensive ebikes offer details that appeal to certain buyers. Nonetheless, in my local Craigslist there are several Lectric 2.0 ebikes (last year's model) selling for $800-900. Not much depreciation, perhaps because they were inexpensive to begin with AND have had lots of positive press.
Yup, and if you're unfussy enough to go used and you're a casual customer, you're not going to pay 2-3x as much for something that's fundamentally similar. Vs say the road/mtb bike market has used buyers that are enthusiasts who care about the details, and will pay the difference (at say, 50% discount across the board, vs 80%+ discount for used e-bikes).
 
Emco hit the nail on this one. It's not just the battery.

The industry is in its adolescent stage - motors, electronics and other components are changing all the time, (mostly) improving. And then there is "Chinese probrem" as the 4th-grader Cartman put it :) - too many and too unregulated manufacturers out there, coming and going like flood waters in spring. Even reputable brands replace their ebikes with COMPLETELY different models after 2-3 years, no matter if the old one was a success. Not "an improved version" but a different model, with different frame and everything else, except for maybe wheels. A completely different bike, and often those parts are proprietary.

Well, the motors are designed to burn themselves out. The batteries are probably the most reliable thing about the e-bikes, but they come with a list of like 10 points of what to do and what not to do. ranging from totally destroying the battery by accidently charging it below 32F, to totally destroying it by having it out in the garage during winter at too low % for too long at too cold a temperature.

E-bikes are pretty damn awesome, but they need lengthy instruction manuals on how to not burn out the motor, and how to not destroy the battery.

I wouldn't trust a used e-bike with all these manufacturing problems
 
I thought I'd see more devaluation but on the used market here in Australia bikes seem to be holding their value pretty well. Used emtbs in that 2 year just out of warranty age are selling for about 75 - 80% of their original RRP. New bike supply has improved but I don't think it's at pre-pandemic levels yet, which helps or hinders (depending on which side of the fence you're on).

I went used for my first purchase and regretted the decision, through a very reputable electric bike only dealer no less. It was a great bike for the most part but threw up a never ending series of error codes and random shut downs. Not fun taking off across a busy intersection. Dapu rear hub. Still, even giving it away in the end the bike didn't owe me a cent in saved parking and fuel costs.

I've since bought two new bikes and haven't had a single error code or day off the road between them in 8500km. (Touch wood). Not sure what my point was... Caveat emptor, I guess 🤷🏻‍♂️
 
If I were a bike shop I would position myself to mediate used e-bikes sales, by offering flat price inspections of electronics and drivetrain, say $50. Pretty sure you can catch basic battery issues with the right equipment. And then it's easy to sell other repair / maintenance services + accessories/parts to the new buyer. As a service to buyers, you could post the results on your website of the tests if the sale doesn't happen, so other buyers would see it's a defective bike.

Pmcdonald, an only 20% discount on a two year old used bike is absolutely bonkers. A warranty alone is worth that much roughly. A 40% discount is the minimum to make it worth it IMO, preferably 50%. When I've bought used pedal bikes, I'd go for 1-3 year old bikes at 50% off MSRP.
 
Interesting thread, my thought process when I bought my e-bike for appx $1.7K was comparing it to the cost of owning a second car. The ROI looks real good up against a car, even a junky car. Registration, insurance, maintenance, etc. add up quick, I felt like if I got a solid 6 months out of my e-bike it would have paid for itself and have now had it a year and a half and it's fully returned the investment. I thought about selling it to my brother recently and getting a new one and I felt like a fair price would be $500-$700 and I've seen no real battery range fall off. The main reason for the discount was the warranty expiring.
 
I thought I'd see more devaluation but on the used market here in Australia bikes seem to be holding their value pretty well. Used emtbs in that 2 year just out of warranty age are selling for about 75 - 80% of their original RRP. New bike supply has improved but I don't think it's at pre-pandemic levels yet, which helps or hinders (depending on which side of the fence you're on).

I went used for my first purchase and regretted the decision, through a very reputable electric bike only dealer no less. It was a great bike for the most part but threw up a never ending series of error codes and random shut downs. Not fun taking off across a busy intersection. Dapu rear hub. Still, even giving it away in the end the bike didn't owe me a cent in saved parking and fuel costs.

I've since bought two new bikes and haven't had a single error code or day off the road between them in 8500km. (Touch wood). Not sure what my point was... Caveat emptor, I guess 🤷🏻‍♂️

I'm guessing you're in a more standardized (and likely somewhat more mature, similar to Europe) market - because of stricter regulations you're not in a wild-west situation like the US is where you can go online and find 50 different fly-by-night Chinese junk resellers. The best selling in the US are the Aventon/Ride1up/Rad online sellers that hit a price point that most of the market has agreed to as being the price of admission in the US.

In more mature markets where e-bikes and bikes are more accepted by the general population as a true means of alternate transport, buyers are more likely to understand that they are spending more money for a bike with better quality components. This would also drive a used market that is more saturated with quality bikes/components, a more knowledgeable buyer audience, and an all-around higher cost of admission.
 
Interesting thread, my thought process when I bought my e-bike for appx $1.7K was comparing it to the cost of owning a second car. The ROI looks real good up against a car, even a junky car. Registration, insurance, maintenance, etc. add up quick, I felt like if I got a solid 6 months out of my e-bike it would have paid for itself and have now had it a year and a half and it's fully returned the investment. I thought about selling it to my brother recently and getting a new one and I felt like a fair price would be $500-$700 and I've seen no real battery range fall off. The main reason for the discount was the warranty expiring.
If you want to sell it to your brother at that price you're giving him a great deal! Assuming you've got one of the bigger name budget bikes (Aventon/Rad/Ride1up etc), You'd probably sell it in a week at $1,200 online.
 
If you want to sell it to your brother at that price you're giving him a great deal! Assuming you've got one of the bigger name budget bikes (Aventon/Rad/Ride1up etc), You'd probably sell it in a week at $1,200 online.
Good to know, it's the Aventon Pace 500 (not newer edition), I have been really pleased with it and it rides great. The only two items I don't love about it are no front shocks and the cadence sensor is pretty basic and just on/off. Would like next bike to have torque sensor, front shocks, and maybe belt drive although not required. Looks like pricing on e-bikes has come down a bit, I haven't looked in over a year at new bikes. A lot of e-bike companies seem to be running pretty good discounts right now. I'm also debating on getting a little mini-moto instead like a Honda Navi but then I've got to get a motorcycle license, registration, insurance, and have to use the roads rather than the bike paths.
 
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