There’s a lot to be said for knowing the current market value of your motorcycle. While you knew that worth at the time it was purchased, you’ve made some upgrades since that time. Now you need to arrange for a custom motorcycle appraisal and find out what it’s worth these days. Here are some of the ways that knowledge can help.
Your Customization May or May Not Add Value to Your Motorcycle
There’s a misconception that any form of customization adds value to a motorcycle. It’s true that a customization may enhance the look of the cycle, or make it more comfortable to operate, but that’s no guarantee the changes add anything to the actual market value. Fortunately, an appraisal can tell you what those changes have done, if anything.
There’s a chance that the changes did enhance the value of the cycle in some way. You may also find that they had no impact at all. There are situations in which the changes you made actually lowered the market value. In any event, you do want to know what the value is for a number of reasons.
You May Be Carrying More Insurance Than You Need
The value determined by the appraisal can make it easier to evaluate the current amount of insurance coverage that you have in place. If the market value has decreased, it may be time to discuss the idea of adjusting the policy so that you no longer carry protections that were once needed, or even adjust the value used to determine the premium.
Essentially, you’re taking the appraisal results and utilizing them to bring your coverage more in line with your needs. Since the policy may allow the insurance provider to pay out based on actual cash value or market value, you may find that some adjustments leave you with adequate coverage in the worst-case scenario while lowering the premiums.
Or You May Need to Make Some Changes to Your Coverage
Perhaps the value has increased and you want to expand the coverage so that there’s enough to cover a complete loss. Using the results from the custom motorcycle appraisal, you can talk with the agent about adding something to what you already have in place.
If the value has increased, you may find that it’s a good idea to move away from stated value coverage and go with guaranteed or agreed value coverage. The latter is more likely to ensure that you would receive enough from a total loss to replace the cycle with something similar enough, minus some of the modifications that you made.
The Appraisal Results Provide Guidance on Setting a Sale Price
Your future plans may include selling the cycle. If that’s the case, how will you go about setting a price that’s likely to attract the attention of interested buyers? Using the appraisal results is one way to determine what you’re willing to accept in the way of offers.
The appraisal details provides the rationale for the asking price that you set. Use it to demonstrate why your price is fair. If the buyers agree with you, the cycle won’t be on the market for long.
Consider having an appraisal done at least every couple of years. Doing so helps you stay on top of the current worth, something that may help you in more ways than one.