What’s it REALLY cost to own a BMW motorcycle?
Jun 23 '03 (Updated Sep 08 '05)
The Bottom Line In the short run (1-5 years) a BMW doesn’t cost any more than others to own, but,
In the long run, (5 years) it may cost less than others.
As someone older and wiser once told me, you don’t know what a motorcycle costs on the day you BUY it, you find that out on the day you SELL it!
Like Mercedes-Benz cars, BMW motorcycles have historically had a reputation for high prices and upscale user demographics. Buying a BMW motorcycle has often been regarded as paying more in order to enjoy the reliability and durability of highly evolved engineering – from a manufacturer that for 80 years has pioneered innovations like shaft drive and ABS braking. Pay more – get more has been the mantra of many BMW motorcycle buyers.
I’m not all that upscale – but in thirty some years of riding I’ve had a chance to own and ride a lot of different motorcycles: German, Japanese, English and Italian. The selection of new and used bikes available to today’s buyer has never been better – and the cost advantages of owning a BMW motorcycle has never been better!
Today, one of BMW’s most popular sport touring models is the R1150RT, an opposed-twin oilhead with a six-speed transmission, interconnected ABS brakes, and an electrically adjustable windshield. Initially introduced as the 1100RT in 1995 with a slightly smaller engine and a five speed transmission the RT is equally at home on short solo errands or long trips with a passenger and full luggage. (I ride a 1997 model with just over 36,000 miles on it).
The Honda ST1100, available in 2003 as the ST1300, is – except for the obviously different engine configuration – as close a clone of the current R1100/1150RT as can be found anywhere.
How does the cost of ownership of the Beemer compare to the Honda? Well, looking at the new and used (retail) prices on the vendor Web sites and in the Kelly Blue Book leads to some interesting observations: first, the one year depreciation on the bikes is almost identical – at just over $3100. The difference between a new, $16,290 BMW and a one year old one is $3160 – or 20% depreciation. The difference between the new Honda and one year old one is $3149 – but against a new price of $14,499, that’s slightly higher (22%) depreciation.
Obviously the deal that one can make for a new or used bike can affect these numbers, but over many years I’ve found this to be a good method to make useful comparisons and estimate depreciation.
It’s in the used bike market where the difference between BMW and other brands begins to become more evident: the depreciation between a 2-year old BMW and a 6-year old one is $2545 (22%). Over the same period, the Honda depreciates $2770 (26%). Still in the ballpark, but eroding more rapidly.
When very long term ownership is considered, the difference becomes more dramatic.
There are a lot of 15 year old BMWs on the road – and according to the Blue Book, a 1988 R100RT – the top of the line 2-cylinder BMW that year – is still worth $4290. The rough equivalent in the 1988 Honda line – the VT1100 Shadow – is now worth only $2965.
I can personally vouch for the long term value retention of BMW motorcycles. In 1977 I bought a 5-year old BMW sport tourer for $1300. In 1997 – after putting about 80,000 miles on it – I finally decided to replace it. I sold it for $1500!
Besides depreciation, the cost of maintenance: service, parts and labor can be a major factor in motorcycle operating expense. The hourly rates for either factory qualified or shade tree mechanics are equivalent for all brands. In my experience, a BMW costs no more to maintain than other bikes. First, I’m no expert, but the layout of the opposed twin – particularly the older airheads – makes it simple for me to do a lot of maintenance on my own. Second, new and used parts are readily available and easily obtainable. In the past 20 years BMW has produced only a few dozen different machines, with many interchangeable parts. In the same period, Honda has produced hundreds of different models with few interchangeable parts. Parts inventory complexity and cost is a nightmare for many manufacturers (and riders).
Finally, the proven long-term reliability of BMW engine and drive train design resists the likelihood of major repairs as the bike ages. If a manufacturer’s marketing strategy is based on planned obsolescence and constant change, system reliability suffers, and maintenance costs increase dramatically over time.
Compared to other bikes, a good used "airhead" BMW will cost less to maintain and pay back more on the day you sell it - and that's when you find out what it really cost to own it!
Buying a new BMW works out somewhat differently! Read about the pitfalls in a more recent opinion.
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frebo3
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Location: Texas, USA
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Socialism is the opiate of the intelligentsia
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