‘Brexit means price hikes for new and used bikes’

Neil Mur­ray makes a liv­ing buy­ing & sell­ing pre-loved me­tal

Motorcycle News (UK) - - Garage -

Get ready for the price of bikes to in­crease – and, on the other hand, watch the value of your used bike firm up. A cou­ple of months ago I was in South Africa, where the rand was per­form­ing even worse than ster­ling is now. The news­pa­pers and TV com­mer­cial breaks were full of ad­verts tout­ing 2016 model ve­hi­cles be­cause the de­pre­ci­at­ing rand meant the new 2017 mod­els were go­ing to be 15% pricier.

We’re go­ing to see the same thing hap­pen here. After the EU ref­er­en­dum, the pound went from 155 yen to 130. They will be push­ing cal­cu­la­tor but­tons in Ja­pan. Big com­pa­nies al­ways hedge their cur­ren­cies, to pro­tect against sud­den shocks like this, but it will be a long time before ster­ling re­cov­ers to where it was. The im­porters will do what they can by cut­ting mar­gins and maybe spec­i­fi­ca­tions, but you’re prob­a­bly look­ing at 10% price in­creases on new bikes across the board in 2017.

When new bikes sud­denly be­come ex­pen­sive, used val­ues are dragged up too. If I were a bet­ting man (and I am, on bikes), I’d be buy­ing used bikes this au­tumn, when prices are low any­way, and stash­ing them away for next year.

Re­mem­ber I said about the Dutch cou­ple who bought cheap bikes on the Con­ti­nent and brought them over to sell at Kemp­ton Park au­to­jum­ble? Well, when ster­ling last weak­ened against the euro, they did ex­actly the re­verse. They bought used machin­ery here and sold it on over there. I reckon they’ll be do­ing it again soon.

Next week

The bikes you’ll want to own in a cri­sis

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