Depreciation reduces an object’s value because of natural factors, such as time and use. Like every other commodity, a vehicle’s value depreciates over time. The same holds for all-terrain vehicles (ATVs). Used automobiles, particularly ATVs, sell at a lower price as they undergo wear and tear. The longer an ATV is driven, the lower its value will be. Apart from time, there are various other factors that influence the current value of an ATV.
Used ATV prices
Typically, used ATV prices range from $3500 to $7000. As the value of all vehicles drops as soon as they get off the lot, most people assume that the used ATV market would have ultra-affordable vehicles. But that’s not true. When determining the current value of an ATV, people try to understand why the used ATV costs so much at times and so low at other times. To understand this better, one needs to look at the bigger picture.
Broadly, the calculation boils down to a few common factors related to the vehicle.
- Model
- Condition
- Accidents
- Mileage
- Upgrades
A dependable and popular model with lower mileage and no rust has a high value. Further, upgrades like engine and suspension performance also add to the value. Naturally, if it is apparent to the buyer that the seller has put in effort towards the upkeep, the vehicle will fetch more value.
When properly maintained, the ATV can run for over 15 years. This durability often leads to higher prices in the used market. Brands known for reliability tend to retain their value better.
What is a high mileage for an ATV?
A four-wheeler is considered to have great mileage at over 5,000 miles in the power sports community. An average riding season adds about 1,000 miles, making five years of riding the industry standard. An ATV’s value depreciates significantly over time with the increase in miles. Naturally, higher mileage implies more time has elapsed and there is a higher chance of ATV having missed its scheduled maintenance. Simply put, the higher mileage ATVs have a lower value and are more susceptible to breakdowns. Ideally, thorough maintenance and care are the best way to ensure durability for a used ATV. It also helps keep the ATV value from dropping dramatically.
When do ATVs start depreciating?
In smaller and larger ATVs, depreciation rates are different. A 400cc or a larger engine depreciates maximum in the first year. On the contrary, smaller models with a 250cc mark or below start losing greater value in the second or third year.
Small ATV’s depreciation rate
1st year: 27 percent
2nd year: 25 percent
3rd year: 15 percent
Large ATV’s depreciation rate
1st year: 23 percent
2nd year: 15 percent
3rd year: 10 percent
So, the first year takes off around 25 percent of an ATV’s value, regardless of its size. But the larger engines retain their value better over the third year mark.
Further, apart from depreciation, the current value of an ATV also depends on where one sells it. The most crucial factor to assess is the local laws before deciding where to sell the ATV. Next, ensure all the necessary paperwork for taxes, registration, and transfers is in place.
There are a few methods to sell an ATV in a working condition. One can ask around their family or friends or post on bulletin boards in the community. But if that does not work, one can consider selling the ATV online.
Estimating the value of used ATVs
Conduct market research
Examine the Kelly Blue book values or compare the ATV with what’s available in stores. Note that every vehicle is unique and requires different evaluations.
Speak with an auto sports dealer
For a reliable estimate of the used ATV’s current value, speak to a reputable auto sports dealer. They have the knowledge and expertise to assess the vehicle and offer an accurate value estimate.
Selling vs. trading a used ATV
Determining whether to sell or trade a used ATV for a new one may be confusing. While trading the ATV to the motor dealer may seem more straightforward, selling it to a private individual may fetch a higher value.
But working with a reliable dealer is better. Online third-party sellers put one at the risk of fake buyers, fraudsters, and other situations where it is easy to be deceived. On the contrary, auto dealers are generally reliable as they are duly registered and offer rates based on actual industry figures.
Selling used ATVs online
Online marketplace is one of the most popular places to post used ATVs for sale. To simplify the process, there are a few dos and don’ts of selling ATVs in the online marketplace.
Dos
- Use the most recent pictures of the ATV and click from all angles –the right, left, back, front, and under the hood.
- Maintain proper lighting to ensure the entire ATV is visible, and there are not too many shadows.
- Be honest while mentioning the mileage, make, model, condition, vehicle history, replacements, parts, or accidents.
- Set an educated price after examining the prices on different portals.
Don’ts
- Post stock pictures from the web, as it can be misleading and may make the buyer suspicious.
- Lie about the ATV’s condition, as the buyer will find out about it during a test drive.
- State “or best offer” (OBO) if one doesn’t wish to lower the price.
- Upload multiple items on sale in one listing.