Value of Used Kit Bike Not Assembled?

[BackNsaddle]

I have a chance to purchase a mostly complete top tier frame kit bike (KRAFT/TECH) that was all purchased in early 2019. Receipts totaled right at $21,000 for everything. It has been partially mocked up, and then put in a corner in the garage. Never was finished. All boxes and manuals are there that came with the parts.

Complete SS motor, JIMS 6-speed, starter, coil, ignition switch, Ultra 2 inch primary drive, front forks, fat spoke wheels, tires, gas and oil tanks, handlebars, complete brake system, hand controls and foot controls, all cables, linkages and hoses, chain, sprocket, etc. It only needs lights, wiring harness, seat, speedometer??, exhaust, battery, and assembled.

1) What would you place the “used” value at on the nearly complete Kit parts package that cost $21,000 new, being all warranties are expired?

25 cents / dollar?
33 cents / dollar?
40 cents / dolar?
50 cents / dollar?
60 cents / dollar?
70 cents / dollar?

2) What would you think the bike would be worth after it’s been assembled if I were to decide to sell it on the open market, after adding $5,000 for the cost to pay someone to assemble or to pay myself for the time to assemble? It’s a Hardtail bobber style bike.

$21,000 – Kit Bike Package Parts New
$2,000 - Parts Needed to Complete
$5,000 – Assembly Labor
$28,000 – Total in Bike


Thanks for your input.

[JBinNC]

My opinion ONLY:

That stuff will bring more on resale as patrs than it will as a complete bike.

Your discount range in question #1 is not low enough if you are gonna try to flip this pile.

Your estimate of costs to complete in question #2 is probably too low. Your return for a resale upon completion will no doubt be way less than 50c on the dollar. That is why this pile of parts is still a pile.

If you want the particular bike for your own use, decide what it is worth to YOU, and go ahead. If you are thinking of flipping it, and you even have to ask the questions, stay away from it unless you are prepared to throw good money after bad.

Again, just my opinion,
Jim

[BackNsaddle]

My opinion ONLY:

That stuff will bring more on resale as patrs than it will as a complete bike.

Your discount range in question #1 is not low enough if you are gonna try to flip this pile.

Your estimate of costs to complete in question #2 is probably too low. Your return for a resale upon completion will no doubt be way less than 50c on the dollar. That is why this pile of parts is still a pile.

If you want the particular bike for your own use, decide what it is worth to YOU, and go ahead. If you are thinking of flipping it, and you even have to ask the questions, stay away from it unless you are prepared to throw good money after bad.

Again, just my opinion,
Jim

Thanks for your incite, Jim. I have considered all angles to this as you noted above.

I was basically looking to see if I could at least break even if I decided to not keep it after building it, being a Hard Tail and didn't know how it would ride with a not 100% back I have.

It has a JIMS 6-speed included, and I'm learning they had issues. Do you know if they resolved these issues by late 2018 - early 2019 (When this was purchased)?

Thanks.

[rockman96]

IF I was in the market and of the desire to scratch build another bike, and IF all the parts present were parts I actually wanted to use, and IF MSO's/receipts for motor/trans/front end are in-hand, and IF you get a bill of sale... I would offer him $8k and go from there. This is assuming I was doing the build for myself and not paying a third party. This is all my opinion, and JB is absolutely correct in all he told you.

[Tater66]

Typically this kinda bike sells for $10K regardless of how new the parts are. The exception is if it built at a known shop with a good reputation and then they could make a profit with their markup. The market for an assembled kit bike is really low right now. This guy was dreaming when he paid $21K in then first place.

This one is a labor of love. Work for free, hope to break even. Unless dude is truly desperate and you can talk him out of it cheap.

[BackNsaddle]

IF I was in the market and of the desire to scratch build another bike, and IF all the parts present were parts I actually wanted to use, and IF MSO's/receipts for motor/trans/front end are in-hand, and IF you get a bill of sale... I would offer him $8k and go from there. This is assuming I was doing the build for myself and not paying a third party. This is all my opinion, and JB is absolutely correct in all he told you.

Thanks for your incite. All original receipts are there, and I obviously would print up a Bill of Sale. Everything is there to assemble minus lights, seat, exhaust, wiring harness, battery, oil pressure gauge.

[BackNsaddle]

Typically this kinda bike sells for $10K regardless of how new the parts are. The exception is if it built at a known shop with a good reputation and then they could make a profit with their markup. The market for an assembled kit bike is really low right now. This guy was dreaming when he paid $21K in then first place.

This one is a labor of love. Work for free, hope to break even. Unless dude is truly desperate and you can talk him out of it cheap.

I hear you on the higher value a known shop "brand" brings, and it seems the $10K figure you mentioned is the area a lot of used HD bikes hover around in For Sale ads for people to get that discretionary spending budget from a buyer.

It seems that $10K area is a choke point keeping all customs pulled down in the market. People just aren't willing to spend more than that on any used bike it seems.