How Much Do You Want It To Cost?
Sep 19 '06 (Updated Sep 24 '06)
The Bottom Line Viewed as an investment, buying and owning a BMW motorcycle is well within the reach of almost anyone who wants one!
The Fun or Honest Answer(s)
There are five, yes count them, answers to how much it costs to buy and own a BMW motorcycle: $7,750, $2,750, $2,100, $1,025 or $600 per year including gasoline. An insane range of costs for a BMW you say, well please read on!
Answer #1 (buy it new, have all service performed by an authorized dealers, then neglect to follow the service recommendations in the owner’s manual) is around $7,750 per year:
Initial costs will be a few thousand dollars less than new car - $7,500.00 to $22,000 for the initial purchase (financed for 5 years at 6% interest, but for this exercise we will only factor in the principle for 5 years), plus 4% to 9% sales tax, plus $50 to $100 for license fees, and finally add another $400 to $1,200 for the first year of insurance coverage.
Should you be a “new” rider then you need to add around $250 for a quality helmet, $150 for riding boots, and between $300 and $2,000 for riding suits.
After the initial 600 mile (and $250) service, you should plan on spending from $150 to $350 every 6,000 miles, and $250 to $750 at every 12,000 mile service.
Since you decided to neglect to follow the service recommendations in the owner’s manual, you should budget another $500 to $1,000 in much needed repairs and towing charges!
Considering my experience with average riders in this group, my guess would be that you would ride about 4,000 miles each year on a $14,000 bike. You should also expect 35 miles per gallon of $2.50 premium fuel. Finally, you will sell it or trade it in around the fourth year of ownership.
Using the arithmetic I learned in both public and military schools, that comes out to around $9,000 per year for four years. Oh, and since you still owe $2,500 on a motorcycle worth about $7,500 (because of the neglected condition), you can reduce the combined $36,000 by $5,000. Now you can look at an annual cost of buying and owning a BMW motorcycle to around $7,750 per year, and that is only if you did not hit anything too large because you neglected to get quality rider training.
Answer #2 (buy new, have scheduled services performed by an authorized dealer, and handle as much of the service recommendations in the owner’s manual yourself) is around $2,750 per year.
Because this kind of buyer would seek out and negotiate a more favorable purchase, initial costs will be a few around that of a Certified Pre-Owned used car - $6,500.00 to $20,000 for the purchase (financed for 3 years at 5% interest, but for this exercise we will factor in only the principle for 4 years), plus 4% to 9% sales tax, plus $50 to $100 for license fees, and finally add another $400 to $1,200 for the first year of insurance coverage.
Riding gear for this kind of buyer should already be hanging in his garage, so we will dispense with those costs. But this buyer would be prone to invest $75 for an Experienced Rider Course and get a 10% discount on his insurance.
My experience with average riders in this group would be that you would ride about 8,000 miles each year on a $12,000 bike. You should also expect 45 miles per gallon of $2.50 premium fuel, using $2.40 mid-grade at every other fill up. Finally, you will sell it or trade it in around the fourth year of ownership.
Tires are his biggest maintenance expense. Safety foremost in his mind, this buyer spends $300 per year on fresh tires for the start of each riding season.
Again, using that same arithmetic, that comes out to around $5,000 per year for four years. But since you paid it off last year, and it is worth about $9,000 (because of the good maintenance records and generally good condition), you can reduce the combined $20,000 by that $9,000. Now you can look at an annual cost of buying and owning a BMW motorcycle to around $2,750 per year.
Answer #3 (buy a used two- or three-year-old, well maintained bike from a dealer or honorable seller, and perform all but the most technical services and repairs yourself) is around $2,100 per year.
Here the initial costs are in line with a dependable used car - $6,500.00 to $12,000 for the purchase (financed for 3 years at 5% interest, but for this exercise we will factor in the principle only for the 4 years), plus 4% to 9% sales tax, plus $30 to $75 for license fees, and finally add another $400 to $900 for the first year of insurance coverage.
Yes, this buyer does already have riding gear hanging in his garage, so we will dispense with those costs. But this buyer would invest $75 for an Experienced Rider Course and get a 10% discount on his insurance.
My experience with average riders in this group would be that you would ride about 10,000 miles each year on a $9,000 motorcycle. You should also expect 45 miles per gallon of $2.50 premium fuel, using $2.40 mid-grade at every other fill up. Again, you will sell it around the fourth year of ownership.
I would expect this buyer to change his own internet purchased tires each year at a cost of $250 per year.
That same arithmetic is starting to get better, it comes out to around $3,850 per year for four years. But since you paid it off last year, and it is worth about $7,000 (because of the good maintenance records and generally good condition), you can reduce the combined $15,400 by that $7,000. Now you can look at an annual cost of buying and owning a BMW motorcycle to around $1,200 per year.
Answer #4 (buy a used 5 to 15 year-old, well maintained bike with verifiable records of all necessary services performed, from a reputable individual, and perform all but the most serious service and repairs yourself) is around $1,025 per year.
Now costs are in line with a good, solid used car - $2,500.00 to $6,000 for the purchase (cash sale, but for this exercise we will spread over 4 years), plus 4% to 9% sales tax, plus $10 to $35 for license fees, and finally add another $150 to $500 for the first year of insurance coverage.
Yes, this buyer does already have riding gear hanging in his garage, so we will again dispense with those costs. And this buyer invests $75 for an Experienced Rider Course every three years and still gets a 10% discount on his insurance.
My experience has been that these riders ride about 15,000 miles each year on a $4,500 motorcycle. They should also expect 45 miles per gallon of $2.50 premium fuel, using $2.40 mid-grade at every other fill up. Again, they will sell it around the fourth year of ownership.
These bikes use less expensive tires that this buyer also mounts himself at a cost of around $200 per year.
This is where the arithmetic gets to be fun, it comes out to around $3,600 per year for four years. But since you paid it off last year, and it is still worth about $4,500 (because of the good maintenance records and generally good condition), you can reduce the combined $8,600 by that $4,500. Now you can look at an annual cost of buying and owning a BMW motorcycle to around $1,025 per year.
(Update based on suggestions from my 27 year old son)
Answer #5 (buy a 12 to 30 year old BMW, in running condition that needs some tender loving care from a reputable individual, doing all the repairs and maintenance yourself) is around $600 per year!
With this option costs fall into those often heard from that gear head you know at work for the purchase ($1500 to $2000 cash sale, but for this exercise we will spread over 14 years because it will still be around then), plus 4% to 9% sales tax, plus $10 to $25 for license fees, and finally add another $75 to $150 for the first year of insurance coverage.
There is no question that this buyer does already have riding gear hanging in his garage, so we will again dispense with those costs. And this buyer invests $75 for an Experienced Rider Course every three years and still gets a 10% discount on his insurance.
These are the riders who riders ride about 18,000 to 20,000 miles each year on a $2,000 motorcycle. They should also expect 45 miles per gallon of $2.40 mid-grade at every fill up. They will ride it to work (and save on gas in the family car). But this time they will sell it around the fourteenth year of ownership.
These bikes also use less expensive tires that this buyer also mounts himself at a cost of around $200 per year. They will join both their local and national BMW owners clubs, an internet support group, and pick up an aftermarket shop manual out of the internet want ads for around $20. New friends they meet through their owners clubs and the internet support group will be available to assist with even the most serious repair and maintenance activities. All repair and maintenance action costs will be reduced by at least $65 per hour since none are performed at authorized dealers.
Now the arithmetic gets really fun, it comes out to around $600 per year for fourteen years. But since you paid cash, and it is now worth about $3,500 (because of the good maintenance records, generally good condition, and the fact that it has increased in “collector value”), you can reduce the combined costs by that $3,500. Now you can look at an annual cost of buying and owning a BMW motorcycle to less than $600 per year!
Told You So!
Yes, depending on how much effort you want to invest, owning a BMW can cost a whole lot or a little. Even the oldest BMW motorcycles are well known for their ability to last, and while they might seem intimidating at first, the older they are the easier they are to repair and maintain. Viewed as an investment, buying and owning a BMW motorcycle is well within the reach of almost anyone who wants one!
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