Are Motorcycles Really More Practical and Economical?

[Naked_Duc]

People tend to forget about depreciation and replacement cost. For some, it might be cheaper to continue driving their existing car than spending the extra $ to buy a new bike just to commute. But any mile you put on the bike is mile taken off your car. it will extend the life of your car and delay that dreaded replacement purchase.

Call it a "sacrificial Lamb", as turbodiesel puts it, or you can call it as smart succession planning. Either way, it will save you money.

 

[johnakay]

the answer is simple bikes are FUN!!!!

not in freezing cold weather it isn't.

 

[johnakay]

my bike now is mainly for pleasure.
before my car licence ,my bikes were my main transport in ALL weathers.
now we are very fortunate to have a choice of bike clothings.
back in my younger days very little was available and I would wear barbour or belstafr due to black wax leaving it mark on any thing you rubbed against.
I used to wear fishermans gear in cold/wet weather and a bomber jacket from pride & clarke(you know rocker don'tcha)

 

[Rocker66]

People tend to forget about depreciation and replacement cost. For some, it might be cheaper to continue driving their existing car than spending the extra $ to buy a new bike just to commute. But any mile you put on the bike is mile taken off your car. it will extend the life of your car and delay that dreaded replacement purchase.

Call it a "sacrificial Lamb", as turbodiesel puts it, or you can call it as smart succession planning. Either way, it will save you money.

But you have to figure in depreciation on the bike

 

[turbodieseli4i6]

But you have to figure in depreciation on the bike

Mine will have paid for itself in 3.1 years in fuel savings alone over my cage. After that it doesn't matter. For me depreciation doesn't come into play because I don't buy and sell. Trading vehicles is a sure way to separate money from my wallet.
I buy and keep it until it is scrap. That's why I try and buy the best quality at the best price that will do what I need. I'm betting I can get 300,000 miles out of this bike before I will decide if I need another. That's 20 years at my current rate. ($46.360 in fuel savings.)
Unless someone makes a low cost bike that will return 100 mpg at a reasonable price, my NCX is safe.

 

[Fuzzy]

If you pay $8000 for a vehicle then "drive it until it is scrap", then you have $8000 depreciation. If that was 100,000 miles then you have $0.08 per mile depreciation. You spent the money. It is a real cost.

 

[670cc]

If you pay $8000 for a vehicle then "drive it until it is scrap", then you have $8000 depreciation. If that was 100,000 miles then you have $0.08 per mile depreciation. You spent the money. It is a real cost.

I'm not an economist, but I think in addition to depreciation, you have opportunity cost. Over the lifetime of a bike, had you not spent the $8000, you could have invested it and turned it into, say, $12,000. Since you spent the money instead of investing, you missed opportunity.

Wikipedia: "In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone, in a situation in which a choice needs to be made between several mutually exclusive alternatives given limited resources."

So, the cost of having the vehicle until it's scrapped is $8000 depreciation plus (estimated) $4000 opportunity cost, plus insurance, maintenance, replacement of consumables, fuel, storage space.

OTOH, one could argue that the opportunity cost of investing instead of spending the $8000 is not having a motorcycle to ride!

Greg

 

[Fuzzy]

Good points.

 

[johnakay]

its only money,if you dont spend it sure some one else will.
and you only get one shot at this life..once its gone its gone thats for sure.
like me some have more time gone than what is in front so spend spend spend..
oh bugger I forgot I've got nowt to spend!!

 

[coldturkey]

I'm a mechanical engineer and an accountant by education and experience. I currently make my living working as a commercial analyst.
when I took my current contract role I did a cost benefit analysis on the most economical form of transport, car vs. train vs. motorcycle.
I bought a new NC750SA plus gear etc. and got payback within 190 working days.
the majority of the benefit comes from the fact that I initially saved more than two hours a day in commuting time. I valued the time saved the same as the hourly rate I get paid after tax. I have three young kids and being able to actually get home and spend time with them before they go to bed is worth at least my hourly rate.
I discovered midway through the contract that a combination of car and train could reduce my commute time from 3 hours a day to 2 (vs. 1 hour on the bike), I factored that in and still hit my payback 2 weeks ago. Plus my contract got extended so by the end of it I'll be well in the black.
Plus riding the bike is way more fun than reading a book on the train or listening to the radio while stuck in traffic in the car.
I hadn't ridden a bike in 10 years and that is why I got the NC750SA great fuel economy, great handling, ABS.
I've been trying to justify switching to a CBR1000RR lately but can't make it stack up.