I used to own several motorbikes in my 20s: 1) A Honda CBR 600R, 2) a Ducati 748, and 3) a BMW 1200C cruiser. Each one was a thrill in its own way. Once you start riding you realize there’s no other better method to get around town. Unfortunately, no matter how great a rider you are if a bad driver mows you down, it’s game over. I remember watching my buddy pop stand up wheelies going from 50 mph up to 95 mph on the highway. They were crazy!
Then one day my buddy came into work with his right arm in a cast. He apparently flipped his motorbike upside down on his latest standup wheelie one footer attempt. Thank goodness he wasn’t run over by the car behind him! I knew from that day on my motorcycle riding days were numbered. When I turned 30, I decided to give up motorcycle riding and just drive a rugged old SUV instead. I wanted to live beyond my 40s.
Motorcycle Costs
Despite my little story I understand the desire to own a motorbike as a three motorbike owner myself. They are a big time rush. Besides, from a personal finance angle, owning a motorbike is often times much cheaper than owning a car.
There’s a lot of backlash from my 1/10th rule of car buying which states that one should spend no more than 1/10th of their annual gross income on the purchase price of car. As a result, I introduced the net worth rule for car buying which states that one should spend no more than 5% of their net worth on a vehicle. Surprisingly, there was much less push back from the community. The new rule was really a way to help justify my desire to afford a new Range Rover Sport. The rule also helps retirees in general with high net worths but low incomes to justify their spending.
Although I included car suggestions such as a 7 year old Nissan Sentra or 10 year old For Escort for someone with a $100,000 networth or less (<$5,000 car allocation), I forgot to include motorcycles. You can get some great second hand 600-1,000cc motorbikes for $5,000. You can also buy brand new 150-250cc Vespas for under $4,000. Although not very manly for men, they get the job done.
One of my favorite features about motorbikes is their gas mileage. You almost always get over 50 mpg and maintenance costs are minimal. The only thing else you really need to buy are motorcycle protective clothing, a helmet, and motorcycle insurance. So long as you don’t get in an accident, all is good! Even parking is free or much cheaper than a standard car.
To Be Young And Courageous Again
If I was in my 20s and just starting out on my wealth building journey, I’d totally buy a motorbike. They are so convenient, fun, and cheap compared to owning a car. You can even learn to do the mechanical work yourself. Alas, I’m older and much more conservative nowadays. It’s all about driving a tank to protect my passengers.
For those who are thinking of getting a motorcycle, I highly suggest you also take out a nice term life insurance policy. You never know what will happen on the windy road.
Recommendation:
Check for lower insurance rates. Auto insurance is the second biggest expense to owning your car. Esurance is the leading online market place to help you find the most affordable and reliable auto insurance. They get you comparison quotes to make sure you’re getting the best deal. You can easily purchase auto insurance straight from their website if you like what you see. It is very important that everyone gets at least basic liability car insurance. You can total your car and be fine. But if you total someone else’s car and injure them, they can go after you for ALL your assets and wipe you out! Check for a better auto insurance quote via Esurance today.
Regards,
Sam
We were in Paris last month and we were blown away by the amount of motorcycles! I’ve seen a lot of vespas, but Paris was big on the motorcycle group. I understand the appeal. I would totally ride one down cramped city streets instead of big bulky cars. I just dont know how they do it in the winter!
Never really been a motorcycle guy. If I’m going to expose myself to the air and elements, it’s going to be by pedal power. You can still get messed up but I’ll be going much much slower if it happens. However, I do like the commuter advantages that a motorcycle could bring like gas mileage and HOV privaledges.
Yeah, small cars and motorbikes are the best for big cities like SF, NYC, LA etc. One time I was gunning my 600CC R6 down H3 in Honolulu to 140mph and I almost smashed into the railing b/c I had never gone that fast before and almost couldn’t turn in time. Freaky. Once is enough!
I wrecked a dirt bike once in high school and that was enough of the two-wheeled, motorized vehicles for me. We have a gentlemen in our church in his second month of recovery from a broken pelvis (and other broken bones) that he sustained in a motorcycle accident after being hit by another driver who wasn’t looking. The doctor who worked on him specializes in pelvis surgeries…says he sees one motorcycle accident a week.
Ouch. I loved dirt bikes and totally wanted to ride around and do those jumps as well. My parents would have killed me first though!
5% of my net worth is -$4500. Anyone want to pay me to take their car off their hands? :)
There is one big downfall to using a motorcycle for your commute: you are totally exposed to the elements. One of my coworkers has a Harley as his only mode of transportation. During that week of rain that Denver had before the flooding, he was pretty miserable.
I have my eye on a 3 wheel car that is coming out next year. Because of the number of wheels, it is classified as a motorcycle in some jurisdictions.
Motorcycles are fun to ride if the conditions are right and the drivers around you are safe. I’ve ridden on them before when I was younger, but it’d take a lot more for me to get on one now, especially in a place like SF. There are so many bad drivers in the city and I’ve been one too many close calls with bikers getting swiped. I have several friends though who are in their late 30s that still ride and have no plans to give up their bikes.
I used to love the ease of commuting on a motorcycle. As you know, Sam, motorcycles are allowed to use the HOV lanes in California. I also used to ride dirt bikes in So Cal and Baja. I was even an amateur roadracer back east and then in California. I have stopped riding, though, due to chronic health problems that make riding difficult, and because I do want to be around to see my kid grow up.