In recent years, many questioned whether motorcycles are inherently cheaper than driving a car. As the prices of gas and insurance go up, the reasons to ride motorcycles are only adding up.
Financially, there has never been a better time to buy a motorcycle – if you’re a millennial, that is. Ok, obviously motorcycles don’t cost less if you’re a millennial but let me explain.
On average, millennials entering the workforce earn 20% less than baby boomers (born 1946-1964) did at the same age.
On top of this, 75% of millennials entered their adult years during the biggest recession since the 1929 crash. So, millennials have less money and more debt than previous generations.
As a result, millennials are buying fewer homes and cars, and have less in savings for the future. This is where motorcycles come in – simply put, they’re cheaper than cars.
Your money will always go further when buying a motorcycle, compared to buying a car.
Let’s take the best-selling car in the U.S. in 2016, the Toyota Camry, and RideNow’s most popular street bike of 2016, the Yamaha FZ-07 as our examples.
The current Toyota Camry starts at $23,495 and, depending on what options go for, can cost nearly $35,000.
A new Yamaha FZ-07, on the other hand, costs just $7,199, or $7,499 if you opt for a model with ABS. Straight away you’re saving at least $16,296.
Of course, cars and motorcycles come in all shapes, sizes, and prices but the relative price gap stays the same. So, while you could pay over $20,000 for a motorcycle that’s ready to cross continents, you could pay 10 times more for a top-of-the-range car.
After buying your vehicle, keeping it full of gas is the next biggest expense, and, considering people in the U.S. drive an average of 29.2 miles per day, it’s not cheap.
The average car in the U.S. gets 24.8 mpg but the average motorcycle gets about twice that.
Take the Yamaha FZ-07 as an example again, it returns an estimated 58 mpg, whereas the baseline Camry gets around 28 mpg.
So, if you start making your daily commutes by motorcycle instead of a car, you could easily save half the amount you spend on gas each year.
Ok, so insurance isn’t as clear-cut as everything else since insurance prices differ depending on where you live.
For example, in Jacksonville, Florida, a 24-year-old riding a used Honda Shadow Spirit 750 would pay around $71 per year for insurance – this would provide them with minimum liability coverage. But, It would cost the same 24-year-old $830 per year for minimum liability coverage on a 1998 Honda Civic.
It’s a similar story on a financed 2013 Honda CBR250R. The rider would pay an annual bill of $297 for collision and comprehensive coverage.
Getting the same level of coverage on a financed 2007 Mazda 3 would cost them $1,558 per year. That’s $1,260 in the difference – money that can go towards your riding gear.
But not every state provides such favorable insurance quotes for motorcycles. In California, the financed 2013 CBR205R would cost around $1,940 per year to insure, and the 2007 Mazda 3 would cost less, coming in at $1,544.
In some states, motorcycles are a lot cheaper to insure but this isn’t the case everywhere. So, before you buy anything, check what the insurance is like in your state.
Motorcycles do require more maintenance than cars but not necessarily more expensive maintenance. The Motorcycle Industry Council (MIC) found that motorcyclists spend, on average, $138 on maintenance per year.
The MIC also found that over half of motorcyclists perform regular maintenance tasks themselves or with help from a friend, which definitely contributes to the low annual maintenance costs.
Tires are something you will have to factor in and need to be replaced every 4,000-11,000 miles. The type of motorcycle you ride, and how you ride it, will play a major part in determining how much you spend on tires per year.
A MIC survey found that motorcyclists, on average, spend $105 per year on tires.
Ultimately, this area is quite subjective and really depends on what kind of motorcycle or car you own, and the quality of the parts you use to maintain it. But, it is possible for a motorcycle to be as cheap or cheaper than a car to maintain.
Fuel, insurance, maintenance – these costs are indicative of both cars and motorcycles, but there are costs you’ll incur with a motorcycle that you wouldn’t with a car:
Firstly, there’s the gear. Don’t put this off, get all your motorcycle safety gear before you start driving.
You could easily be looking at $600 for your gear, and double that if you’re buying top-of-the-range. But, once you buy it, you have it and you don’t have to upgrade every year.
A motorcycle training course is also recommended. It takes a lot of practice and skill to ride a motorcycle safely, and a training course will get you off to a solid start.
You can also take advanced courses to strengthen and control your skills. Courses are around $300 but, like the gear, once you have it you don’t need to get it again.
These upfront expenses will probably cost you close to $1,000, which is off-putting for some people.
The thing is, the money you’ll save annually by riding a motorcycle will easily cover these expenses so, ultimately, you’ll still be in the green.
Riding a motorcycle can be an expensive hobby or a cheap mode of transport, it really depends on what you want and how much you want to spend. Either way, it’s a considerably cheaper way of getting on the road, compared to a car.