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Discussion Starter · #1 ·
I've only been back into motorcycling for a few months, after taking several decades off. So I have not yet spent much on modifications. I do have a list of things I want to do to my 2000 650n, so price will certainly be an object when I make the decisions to invest. So, to the community, have you noticed increasing prices for things like tires, oil, parts, and accessories?

I think virtually all of us have seen crazy price increases recently for things like gas, food, lumber, equipment, real estate. and other such. But has this inflation had an impact on the cost of motorcycling? Further, has the price of bikes increased, both in the new and used markets? I understand used car prices have mushroomed. But that is due to things other than overall inflation.

In the U.S. the fed reported inflation climbing to 5.4%, which is the highest seen since 2008. But it seems the price of a gen1 SV650 has hovered around $2-3000 for years. Maybe motorcycle pricing is insulated from inflationary pressures. Don't know. But I am curious if the other costs of our sport/passion are likewise insulated from inflation, or if they will start a rapid climb.
 

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I don't think inflation has effected motorcycling as much as it has effected other areas. Both of my other passions, cycling and ocean white water kayaking has been effected in a big way! The price of bicycles and kayaks (if you can find what you want) have really soared!
 

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Discussion Starter · #3 ·
It's interesting how motorcycling has not been affected like some other areas. Bicycle prices have soared? There must be underlying fundamental reasons, apart from simple inflation. I've read beef prices have risen because of production issues, and lumber prices have skyrocketed because of production and supply issues. As a future buyer of motorcycle parts and accessories, that's good news, nonetheless.
 

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bike prices are up for sure. just check FB marketplace or craigslist, folks are looking for $4-$5K for bikes that would have sold for $3500 at best a year ago...
 

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Discussion Starter · #5 ·
bike prices are up for sure. just check FB marketplace or craigslist, folks are looking for $4-$5K for bikes that would have sold for $3500 at best a year ago...
Really? But it seems like prices for bikes like mine are stuck in the mud.
 

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SVs in California are creeping up. Lots are asking $5k for a 2nd gen, but you can still find them around $3500 if you wait.
Parts are about the same for me. Of course, my bike is done, so I'm not looking for anything else really. Tires seem to be in the $300 range/pair no matter how you cut it.
 

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It's interesting how motorcycling has not been affected like some other areas. Bicycle prices have soared? There must be underlying fundamental reasons, apart from simple inflation. I've read beef prices have risen because of production issues, and lumber prices have skyrocketed because of production and supply issues. As a future buyer of motorcycle parts and accessories, that's good news, nonetheless.
Yes, reason is covid. I think a lot of outdoor activity stuff including bicycles, kayaks, canoes, camping gear.......have gone up due to covid. Folks want more outdoor activities.
 

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More money = inflation. People working form home has freed up time off and money, less spent in commuting and other expenses associated with working. With more time away from work last spring there was a lot of home remodeling going on, new home sales are way up as interest rates have remained low. All the extra money the government is putting in peoples pockets is driving a lot of the shortages, people making more on unemployment than working, add in the child tax credits that started last week. The federal government took a one size fits all, the extra unemployment for someone in Hattiesburg, MS goes much further than New York. Thousands of new vehicles have been manufactured and can't be sold with the chip shortage driving up new car prices and dragging used car prices up too. Motorcycles sales have been declining for years, don't see that changing much in the near future.
 

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Here in AZ they listed as low as 2k and as high as 5k. A lot or variance in price and condition but price doesn't always match condition.
 

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Discussion Starter · #10 ·
More money = inflation. People working form home has freed up time off and money, less spent in commuting and other expenses associated with working. With more time away from work last spring there was a lot of home remodeling going on, new home sales are way up as interest rates have remained low. All the extra money the government is putting in peoples pockets is driving a lot of the shortages, people making more on unemployment than working, add in the child tax credits that started last week. The federal government took a one size fits all, the extra unemployment for someone in Hattiesburg, MS goes much further than New York. Thousands of new vehicles have been manufactured and can't be sold with the chip shortage driving up new car prices and dragging used car prices up too. Motorcycles sales have been declining for years, don't see that changing much in the near future.
Damn Salty. You just about summed up the entire U.S. economy in one paragraph!
 

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Discussion Starter · #11 ·
Here in AZ they listed as low as 2k and as high as 5k. A lot or variance in price and condition but price doesn't always match condition.
Yes, when I was looking for mine, prices were all over the map. But, after learning a lot on the SVR forums, and elsewhere, it seems the mean may be in the $2,500 range for a bike in good condition, with a pretty tight distribution around the mean.
 

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The question is confusing. Inflation comes at the end of a historic pandemic, after individuals, businesses, and governments have adjusted their behavior and a global depression was avoided due to liquidity being provided quickly by most reserve banks. That was an economic text-book case of how to quickly react to avoid a depression and extremely successful I'd say.

With the exception of the US all rich countries have had automatic and generous instruments to pump cash into the economy when a depression looms, at least since the 2008 financial crisis (caused by the US btw). The measures in the US are comparatively stingy and short-term (monthly child subsidies have been around in Germany since the 1970s for instance). Also, interest rates are still at historic lows. The reserve banks have plenty of leverage to curb inflation should it get out of hand.

Individuals reduced their overall spending, shifted their spending from entertainment and tourism to online shopping, local outdoor activities, and used cars and motorcycles.
Used car and truck prices account for most of the increase in inflation together with fuel prices. But motorcycle sales in the US have also gone through the roof after being stagnant for the past decade, but not declining as is commonly believed (what's been declining though is Harley-Davidson's market share in the US).

As many experts seem to say, inflation in consumer goods will only persist if consumers accept the currently elevated prices for cars, motorcycles, bicycles, etc. I'd say to sell your motorcycle now, but wait with buying one for another four months or so. Prices will come down as demand normalizes again.
Prices of lumber have returned to normal already, prices of micro-chips will as well as the order backlog is reduced.

I'm much more worried about another huge outbreak with the highly infectious delta variant and others spurred by the low vaccination rates (50% or less) and careless behavior in even most rich countries. That could spur another global recession. The recent drop of the S&P index shows that the financial markets are increasingly worried about that. Please get vaccinated and wear a mask in public spaces indoors.
 

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Discussion Starter · #13 · (Edited)
Thanks for your input bklyn. While you are right:
Used car and truck prices account for most of the increase in inflation together with fuel prices.
...used car and truck prices and gas accounted for only a third of the increase. And that was only in June. The all-items index's dramatic rise over the last 12 months included all components of the CPI.
Prices of lumber have returned to normal already
Not quite. Lumber prices are still up over 100% from last spring. I am a home builder. So I know first hand how the dramatic rise in lumber prices affects my profits. And the down-stream products made from wood are also priced sky-high. The trouble in my industry is that home prices have not climbed at nearly the rate of materials and labor required to build the homes.
I'd say to sell your motorcycle now, but wait with buying one for another four months or so.
It's funny you say this. The underlying reason I purchased my bike, and other hard assets recently was because of my inflation expectations for the coming years. My undergraduate degree is in economics. I saw the writing on the wall. Emergency spending to overcome the adverse effects of Covid was one thing. But to keep on spending, long after the effects of the shut-down have played out is simply reckless. I'm not criticizing either party, but both. Now they (lefties and righties) want to spend another $3.5 Trillion. In fact, money supply (M2) has grown by over 35% over the last twelve months. It's grown by over $5 Trillion! That's unconscionable. That's why I am staying away from paper assets.

Keep in mind what inflation actually is. I was mistaken to use the term inflation in the title and body of my post. Inflation is not an increase in overall pricing of products in the economy. Price increases are the result of inflation. As pointed out in Investopedia, "The consensus view among economists is that sustained inflation occurs when a nation's money supply growth outpaces economic growth." So, by increasing government spending (M2) so dramatically over the last 12 months (more than we have ever increased it), we have caused the spike in CPI. And we're not showing any signs of slowing the spending down.

Lastly:
The reserve banks have plenty of leverage to curb inflation should it get out of hand.
Because the Fed has kept interest rates artificially low over the last several years, we can fight inflation with tighter monetary policy via the OMC, the worry then becomes stagflation. Hence the return to the misery of the Carter years. In fact, some are cautiously calling what's going on today "Welcome Back Carter".

Last lastly, I promise. Covid jabs have become such a political hot potato. So when you say please get vaccinated, I will simply say no. For two weeks in a row, the vaccine has killed more people than the disease itself. So, no thank you.
 

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Oh come on... not here...

And yes, it's definitely affected motorcycling. I've been checking craigslist/facebook market every week considering selling one or two of my bikes simply because I know I'll probably never get a higher dollar for them. People are paying much more for used machines right now than they would have prior to the fun thing that started in early 2020.
 

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Discussion Starter · #16 ·
Oh come on... not here...

And yes, it's definitely affected motorcycling. I've been checking craigslist/facebook market every week considering selling one or two of my bikes simply because I know I'll probably never get a higher dollar for them. People are paying much more for used machines right now than they would have prior to the fun thing that started in early 2020.
I'm still going to keep mine. Looks like crap cosmetically, but it's so damned much fun to ride. I'm hoping though that parts and accessories prices don't skyrocket. Eventually I'd like to do some modifications, both cosmetic and performance-wise.
 

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Back to inflation, although not motorcycle related the inflation we are experiencing is not a temporary situation. Our YTD spend on packaging materials is $2.8MM, we have had 5 increases on corrugated this year, 3 on the film that goes into making bags. One of maintenance parts supplier has added a 10% surcharge on all parts, they can't keep up with the increased cost of their materials another added 4%. Nearly all of our production equipment is stainless steel, outside contractors quotes for repairs/refurbishment are good for one day, used to be 2-4 weeks. The producer price index increase for June was 7.3%, up from 6.6% in May, it's a good indicator on what reaches the consumer through inflation.
 

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Discussion Starter · #18 ·
Back to inflation, although not motorcycle related the inflation we are experiencing is not a temporary situation. Our YTD spend on packaging materials is $2.8MM, we have had 5 increases on corrugated this year, 3 on the film that goes into making bags. One of maintenance parts supplier has added a 10% surcharge on all parts, they can't keep up with the increased cost of their materials another added 4%. Nearly all of our production equipment is stainless steel, outside contractors quotes for repairs/refurbishment are good for one day, used to be 2-4 weeks. The producer price index increase for June was 7.3%, up from 6.6% in May, it's a good indicator on what reaches the consumer through inflation.
Salty it sounds like your industry is being hammered like mine. I switched from framing my houses in wood to steel because of the steep rise in lumber prices. Now the price of steel is up 120%

This inflation is making business difficult. But you can't print money like a fire hydrant and not expect inflation to skyrocket. Weird times my friend.
 

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I'm glad to see this has been going well.
To answer the question posed in the thread title: OBVIOUSLY inflation affects motorcycling. If I'm not running 33/36 psi f/r I notice it. Don't believe me?? Drop 3-4psi on the front and report back. Rude awakening right there.
 

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Discussion Starter · #20 ·
I'm glad to see this has been going well.
To answer the question posed in the thread title: OBVIOUSLY inflation affects motorcycling. If I'm not running 33/36 psi f/r I notice it. Don't believe me?? Drop 3-4psi on the front and report back. Rude awakening right there.
Smartass!
 
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