Things to Know about ATV Depreciation
When you buy an ATV, it’s unlikely that your top concern will be about how it will depreciate over time. Many ATV and UTV buyers don’t think about depreciation until it’s time to sell their off-road vehicle, but it is an important thing to consider not only when making a purchase, but throughout the ownership cycle.
Whether you’re looking to sell an ATV or are thinking about buying one, we have compiled a list of the top three things to know about ATV depreciation.
ATVs Don’t Depreciate as Quickly as Cars
Depreciation tends to be a larger issue when it comes to cars. ATVs and UTVs don’t depreciate as quickly as cars, which can lose as much as 30 per cent of their value the moment they are driven off the lot. Most four-wheelers and side-by-sides don’t start to lose value until roughly three years after their first use, depreciating between 10 per cent and 25 per cent every year during this time. After that, their value tends to level off.
If you’re shopping for a used ATV, you could find the best deal with a model that’s three to four years old since the initial depreciation has already occurred.
Contributing Factors to ATV Depreciation
Time: There are a number of things that can impact ATV and UTV depreciation, including the age of the model and how long ago it was purchased.
Brand: Companies that manufacturer more units and have more parts available, such as Honda and Yamaha, tend to depreciate slower in the long term.
Mileage: The more miles you put on your quad, particularly in its early years, the faster it loses its value.
Condition: In addition to how much you ride, the type of riding you do can also have a big impact on depreciation. Treating your vehicle well will help retain its resale value.
Size: Smaller ATVs and UTVs, including models for kids that have 100 cc engines and smaller, tend to depreciate faster in the first three years. Larger, more powerful models (500 cc and bigger), tend to depreciate the slowest over time.
These are all important elements to remember, especially if you plan on selling your off-road vehicle during the initial depreciation period.
Proper Care and Maintenance Improves Resale Value
ATV maintenance is a critical part of ownership, but did you know that it can also slow long term depreciation? Keeping up with your four-wheeler or side-by-side’s regular maintenance schedule will improve its efficiency and reliability, but it will also help retain its value. Be sure to follow your unit’s owner’s manual for a schedule of all required maintenance and keep records of the work that has been completed.
Understanding how off-road vehicle depreciation works can be beneficial both when you’re shopping for an ATV or UTV and when you’re selling one.
Arielle Patterson
You might also like
