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Panorama a look at the informal market for used motorcycles in colombia 2021

‘Yamaha RX 115 is sold without papers, not Soat, not mechanical technical review’. “He bought Honda Tornado papers.” ‘Motorcycle for sale to use on the farm’. Like these, thousands of messages are posted daily on Facebook and other social networks, for buy and sell of motorcycles, in which many Colombians find ‘the motorcycle of their dreams’.

It is impossible to verify the number of businesses that are specified through the networks, but these notices do shed light on the level of informality that occurs in the world of used motorcycles, especially in those of medium and low displacement, that is, of less than 250 cm3, in which, for up to a million pesos or less, it is possible to buy a ‘waterfall’ motorcycle, but functional.

A comparative look at the official statistics of the Unique National Traffic Registry, Runt, allows to establish that despite the fact that in Colombia each year more motorcycles are sold than private cars, the transfers of one and the other show great differences.

The informal business of used motorcycles

For example, in the 2020 In which the figures were down due to the effect of the covid-19 pandemic, 1,077,829 transfers were made. Of these, 40 percent were for automobiles with 434,623 and motorcycles followed with 31 percent, equivalent to 339,307.

That same year, cars, vans, motorcycles, buses, trucks and other vehicles were registered, 717,359. 72.3 percent of the registrations were for new motorcycles, which totaled 518,529 units, which became part of the universe of motorcycles that the Runt has in its records and which as of December 2020 totaled 9,419,374 59.

The informal business of used motorcycles

The informal business of used motorcycles

This figure obviously includes a high percentage of appliances that they only appear on paper, because as we have said on other occasions, they are already scrap metal or were abandoned by their owners in traffic yards or workshops, due to the impossibility of paying fines, taxes and expensive repairs.

This is one of the reasons why the wise popular phrase “broth is more expensive than eggs”, takes its true dimension. The owners of these motorcycles it is cheaper to buy a new motorcycle, even by paying it in installments with the energy bill, than claiming your old motorcycle.

The informal business of used motorcycles

The informal business of used motorcycles

Half a country without requirements or procedures
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However, they keep their registration documents or traffic license, that in the market they are ‘negotiated’ for 100,000 or 200,000 pesos, with which another ‘twin’ motorcycle can circulate without any problem, except of course, being careful with the checkpoints.

Although that’s not a big problem either. In 653 municipalities, that is, more than half of the national territory, where they live 8.6 million people, no control is made of traffic regulations, much less vehicles, according to information from the Transportation Activities Monitoring Center (Cemat), revealed by the Superintendency of Transportation, registered by this section in 2018.

Bajaj motorcycle assembly plant in Colombia.  La Tebaida, Quindío

Bajaj motorcycle assembly plant in Colombia. La Tebaida, Quindío

That means a motorcyclist can ride more than half a country. no driver’s license, no traffic license (property card), without Soat, without mechanical technical revisionWithout lights, without a helmet, and even with a few drinks between chest and back and nothing will happen to him, because there is no authority. That half-country is “a demilitarized zone for illegality and informality,” where most of the old motorcycles from the capital cities end up.

Another phenomenon that occurs in this gray area of ​​informality in the motorcycle market is that these are they ‘inherit’ between relatives or pass from one friend to another. According to the 2018 National Quality of Life Survey conducted by the Dane, the 89.8 percent of Colombian households he had at least one motorcycle.

This would explain the reason why many transfers are not recorded as there is also a ‘savings’.

In January, 41,486 new motorcycles were registered.

used motorcycles in Colombia, an informal business

Let’s see: The Soat for motorcycles less than 100 cm3 today costs $ 369,750; for motorcycles from 100 to 200 cm3: $ 495,900; and more than 200 cm3: $ 559,050. The mechanical technical review (RTM, which varies by model), averaged $ 149,000. The value of the traffic lights in Bogotá $ 61,000 and the value of the transfer process $ 83,500.

The costs of spare parts that the new owner would have to buy are not included so that the motorcycle is in optimal condition and passes the mechanical technical review. With these figures, if a person buys a 125 cc used motorcycle registered in Bogotá, they must have the Soat and RTM up to date and pay the traffic light rights to make the transfer.

In this case you would have to pay $ 789,400. That is to say, for someone who buys a motorcycle for about 2 or 2.5 million, paying that additional sum in paperwork is surely not very viable or possible because just to pay for the motorcycle it will already be sufficiently ‘celebrated’.

Motorcycle sales do not give up

motorcycle sales

And we are talking about Bogota, because as we mentioned above, more than half of the country does not have transit authorities, and less, organisms to do these procedures.

That’s why in Marketplace from Facebook There are motorcycles that sell “only with a letter of ownership”, who knows in whose name or with what legal ‘situations’ behind.

The important thing in this informal world is to have something to move or work on, and if something happens, it does not matter because it is not in the name of one and the problem will surely be for another.

The informal business of used motorcycles

The informal business of used motorcycles

The business of ‘premium used’

The fact that there is informality does not mean that this phenomenon extends to all motorcycles and their owners. And also on the internet there are serious sites where you can buy a used motorcycle with all its documents in order.

And in the market for high-end motorcycles or brands’premium‘, the rules are very similar to buying and selling used vehicles. Some dealerships like Autogermanian, importer of BMW Motorrad makes retakes of motorcycles of its own brand, with previous expertise, review of claims and tradition.

Autogermanian has a stipulated tour per year of 12,000 kilometers, which does not imply that a motorcycle with greater mileage to this, but the retake value is different according to the devaluation criteria.

Motorcycles used in Colombia

Motorcycles used in Colombia

The price It is established depending on the model year, the expertise that is carried out and the mileage you have using a criterion of percentage devaluation per year It depends on the type of motorcycle and its commercialization in the market.

For example, they explain, “a BMW R 1200 GS motorcycle derives its price from the equivalent new motorcycle (R 1250 GS); we subtract 15 percent in the first year and 10 percent in subsequent years; from this result we deduct the value of the arrangements resulting from the expert opinion carried out. The result of this operation yields a commercial value to which we apply a profit percentage that depends in part on several factors such as stock volume, series, model year, etc., and this result is the retake value offered to the owner “.

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