A motorcycle's "blue book value" is the generic term for the market value of a motorcycle made in a particular year by a particular manufacturer. The Kelley Blue Book (KBB) is the origin of that term and is one of the most well-known pricing guides for those in the market for a used motorcycle.
The other major motorcycle pricing resources are the NADA Guides produced by J.D. Power. "NADA" stands for the National Automobile Dealers Association, which provided comprehensive buying guides for used cars. In 2017, J.D. Power bought the company and expanded the offerings to includes motorcycles, RVs, classic cars, boats, and manufactured homes. NADA Guides offers print appraisal books on both newer motorcycles (as well as snowmobiles, ATVs, and personal watercraft) and vintage, collectible, and retro motorcycles.
Key Takeaways
- The Kelley Blue Book gives you a sense of how much you can expect to spend or receive when buying or selling a specific motorcycle.
- These values are based on nationwide sales transactions, including auctions, dealer sales reports, and dealer surveys.
- Additional equipment for a motorcycle, such as an engine guard, may also be included as a separate value.
- The NADA Guide uses a variation on these calculations to come up with its own values for motorcycles.
How KBB Calculates Motorcycle Values
KBB says that it determines values for motorcycles based on data obtained from "auctions, dealer sales reports, and dealer surveys, plus dealer and consumer listings and sales transactions nationwide." The company says that it also takes into account current market and economic conditions.
Trade-in vs. Listing Price
After you've searched for a particular motorcycle—by providing the year, make, and model—you are asked to select either Trade-In Value or Typical Listing Price. The former is the amount you might expect to get when trading in a used motorcycle in good condition with all of its original standard equipment. The latter is what a dealer would likely ask you to pay if you were looking to buy a used motorcycle in good or better condition.
Additional Equipment
Some motorcycles that you search for will have information on the value of additional equipment, which you can see by clicking on Optional Equipment. For example, depending on the make, model, and year of the motorcycle, cruise control and an engine guard might each add $35 or more to the value of the bike. KBB assumes that these additional options are also in good condition.
Mileage
KBB does not take into account the mileage on the odometer. KBB says that road conditions and the previous owner's riding style have larger effects on the bike's value than mileage.
How NADA Guides Calculates Motorcycle Values
You can start your search for motorcycle values on NADA Guides' website by selecting a manufacturer or a category of bike, such as Cruisers or Motocross. Ultimately, as on the KBB site, you'll choose a year, model, and make. You'll also be asked for your ZIP code and any special options.
You can even compare as many as three specific motorcycles side by side.
The site offers four prices on motorcycles:
- The manufacturer's suggested retail price (MSRP), which includes only standard equipment and excludes taxes and transportation and destination fees, which cover the cost of getting the vehicle to the dealer.
- The suggested list price, which is the manufacturer's or distributor's highest suggested list price in the U.S. when the motorcycle was new. It typically does not include destination charges or taxes.
- The low retail price, which is for a vehicle that may show "extensive wear and tear," including "dents and blemishes" on the body, but is still safe to drive. Motorcycles with this low quality usually aren't sold by dealers.
- The average retail price, which is for a vehicle that is clean and "without obvious defects." The mileage should be about average, and the bike should be able to pass an emissions inspection.
NADA Guides uses data from more than 1.5 million vehicle transactions a month to help determine values. Those transactions include wholesale, retail, and auction sales. NADA Guides also considers asking prices posted on classified listing sites and Autotrader. Its valuation team says that it "uses the latest technology, deep knowledge of each segment's market, statistics, analytics and econometrics to derive our values." It does not use a depreciation schedule, because there is a lot of variation in the rates of depreciation among different used motorcycles.
Frequently Asked Questions (FAQs)
How do I check the KBB value of my motorcycle?
You can visit the Kelly Blue Book website directly to find your motorcycle's value. You will need to enter the year, make, and model.
Can I use the Kelly Blue Book value to haggle on a motorcycle?
The blue book value of a motorcycle can often serve as a starting point for negotiating a price, but it isn't the only factor to take into account. Things like the condition of the motorcycle or the market that you live in also play important roles. Depending on the motorcycle's condition, you may be able to use its blue book value as part of your price negotiations.
FAQs
Motorcycle's Actual Cash Value (ACV)
Insurers determine your bike's ACV by looking at its year, make, model, mileage, overall condition, and any upgrades or modifications. They typically use sources like Kelley Blue Book, NADA Guides, and local comp sales of similar motorcycles to calculate a fair market value.
What is fair market value of a motorcycle? ›
The fair market value is the amount you could reasonably sell your motorcycle for if it was not damaged. You should not take the ACV of your motorcycle from the insurance company at face value.
How much should my motorcycle cost? ›
The Motorcycle
Beginner riders typically pay between $5,000 and $10,000 for a new motorcycle. Experienced riders typically pay between $10,000 and $35,000 for a new motorcycle.
What is the salvage value of a motorcycle? ›
Insurance companies declare motorcycles a total loss when repairs cost a high percentage of the bike's value. A salvaged, reconstructed or otherwise “clouded” title has a permanent negative effect on the value of a vehicle. The industry rule of thumb is to deduct 20% to 40% of the Blue Book® Value.
What is the formula for actual cash value? ›
Actual cash value is equal to the replacement cost minus any depreciation (ACV = replacement cost – depreciation). It represents the dollar amount you could expect to receive for the item if you sold it in the marketplace.
How do you lookup the value of a motorcycle? ›
To find out what a motorcycle is worth, check out Kelley Blue Book and J.D. Power, which you can find through NADA. Both companies offer free values, which you can check on their respective websites, and both use sales transactions when calculating a used motorcycle's value.
Are motorcycles hard to sell? ›
How hard is it to sell a used motorcycle? Thankfully, selling a used motorcycle isn't hard at all. You'll have to watch out for scammers and make sure you have the right paperwork.
How do I determine fair market value? ›
In real estate, taking the value of at least three comparable properties that were recently sold, then figuring an average is how you calculate FMV.
Do motorcycles hold their value? ›
While most motorcycles depreciate over time, there are a few exceptions that can increase in value: Limited edition models - Motorcycles produced in limited quantities or special editions can become collectible and increase in value over time.
What is the average life of a motorcycle? ›
A used touring motorcycle, for example, will usually last for about 100,000 miles. A used sport bike, in contrast, will usually last for about 50,000 miles. When figuring out the lifespan of a used motorcycle, it's important to consider the predicted amount of time for that particular type and model.
Generally, high mileage on a motorcycle is anywhere from 20,000 to 50,000 miles. For sport bikes, the high mileage number will be on the low end (usually around 25,000), while cruisers and touring bikes typically become high mileage in the 40,000- to the 50,000-mile range.
Is there a nada for motorcycles? ›
NADA stands for National Automobile Dealers Association. Like Kelley Blue Book, NADA takes information about motorcycles and the marketplace to determine values. Values are based on condition, mileage, age, etc. We use these values to calculate payouts on total losses and thefts for Rider Insurance claims.
What is a reasonable salvage value? ›
The Internal Revenue Service (IRS) requires companies to estimate a “reasonable” salvage value. The value depends on how long the company expects to use the asset and how hard the asset is used. For example, if a company sells an asset before the end of its useful life, a higher value can be justified.
What do insurance companies use to value a motorcycle? ›
Insurance companies generally use the motorcycle's Actual Cash Value (ACV) method, which is the actual cost to replace the damaged motorcycle with a similar one, minus depreciation. You can use this same formula to determine how much compensation you should get.
How much value does a motorcycle lose each year? ›
Like cars, motorcycles depreciate the most in the first two years. Motorcycles tend to lose 5% when they leave the lot, and then lose about 19%-27% by the end of year two. After the initial two years, motorcycles lose about 5% per year after that, up to year ten.
What are the methods of determining the actual cash value? ›
Actual cash value (ACV) is a way to determine the value of your business property that's getting repaired or replaced after covered damage. Insurance companies calculate ACV by subtracting the depreciation from an item's replacement cost value.
How do you calculate actual cash? ›
Actual cash value is computed by subtracting depreciation from replacement cost, while depreciation is figured by establishing an expected lifetime of an item and determining what percentage of that life remains. This percentage, multiplied by the replacement cost, provides the actual cash value.
How do adjusters determine actual cash value? ›
The ACV depends on multiple factors, including the year, make, model, vehicle options, mileage, wear and tear, and accident history. If you disagree with the insurance company's estimate of your vehicle's value, you may be able to negotiate with them for a higher payout.
What must be considered to accurately determine the actual cash value of a vehicle? ›
The actual cash value will be based on comparable vehicle sales in your geographic area as well as your vehicle's mileage, condition and options. Keep in mind that depreciation can vary, and some items will depreciate much faster than others.
