Refurbished bikes might save your profit margin – or business – this year

In the current economic climate, how do retailers win new customers and generate regular business?

In the second of a series of features with BikeBiz, Phillip M Lucas shares insights into the potential value of refurbished bike sales for bike shops of all shapes and sizes.

For wider context, second-hand is no new trend – used-approved (auto industry), pre-loved (apparel sector), refurbished (consumer technology), reclaimed (building industry) all generate serious revenue.

Here Lucas explores what the cycling industry is learning (and earning) from this wider societal shift, and why refurbished bikes might save your profit margin – or business – this year

Trendwatching: Refurbished bikes are the time-tested first step into cycling for many. Taking them seriously again as a retailer could secure the short-term to mid-term future of your business.

Digital platforms like Tuvalum in Spain, Upway (50k unit sales a year), and Les Rénovateurs du Cycle (both in France) have proven that second-hand bike sales work today when they’re done right. In the UK, Cycle Exchange and WeBuyCycle are trending up. Similarly, The Pro’s Closet in their USA has recently rebooted and returned to its core business: certified high-quality second-hand bikes, with real QC and resale credibility. 

These platforms operate entirely online – but does it all need to be online? How much potential business is floating past your shop in a DHL van right now, headed to someone else’s warehouse? During economic downturns, second-hand bikes are not a fringe category. They may now be a viable growth engine for sales, loyalty, and workshop utilisation in a slow new bike sales market.

TL;DR:

Refurbished bikes are maturing into a proper retail segment. The data shows it. The shop model can handle it when done right. And with smart trade-ins, service bundling, and warranty strategy, you can turn risk into repeat revenue.

Don’t make a market shift a missed opportunity.

Once upon a time, second-hand shop sales were more common. Perhaps, in sight of market softening, it’s time for independent shops to catch back up, and cash in. As both electrification and lease sales grow, so does the funnel of modern feeling second-hand bikes returning to the market. And as bikes gain in complexity (digital shifting, e-bike systems), consumer confidence is dropping on peer-to-peer platforms like Gumtree and eBay. Here are some eye-opening second-hand statistics:

• In France, new bike sales dropped 9% in 2024, yet second-hand bikes grew notably. They made up as much as 23% of total unit sales – about 1.3 million bikes, worth €740 million today, with a 10-year CAGR projection of 6.4%. 
• In the Netherlands, shop second-hand bikes average €950 – over 50% of new-bike ASP (€1,815) and nearly 40% of e-bike ASP (€2,574). Despite tight selection, second-hand sales still generated around 15% of retail market value and 30% of unit sales.
• In Germany, second-hand bike sales are growing at up to 5.1% CAGR: a clear sign that workshop-backed resale is becoming the norm, not the exception.
• In Belgium, new speed pedelec sales fell 12.6%, but second-hand sales jumped 20%, a surge tied to the country’s strong leasing ecosystem.
• In the UK, while new-bike sales slowed to their lowest point in 50 years, Cycle Exchange achieved a 40% CAGR from 18 – 23 and projected 20% growth in 24. 

These scattered datasets send a clear signal: the data is starting to align. In a period of shaky confidence and practical consumer behaviour, second-hand is going mainstream and the second-life market is maturing.

In certain categories, refurbished is now seriously competing with new.

Additionally, these figures show that second-hand doesn’t have to mean low-end: many retailers are focusing on high-quality, well-maintained bikes as an affordable peer to new purchasing, with the “high” second hand retail price made worthwhile by service, financing and warranty.

In Britain, where total new bike sales dropped by over 20% in 2023, the second-hand sector proved more resilient. Platforms like Cycle Exchange and WeBuyCycle have expanded operations, while Halfords and Decathlon increased investment in certified pre-owned bikes. Some estimates suggest refurbished bikes already account for 10-12% of UK retail unit sales, and growing. As quality and trust become the new currency, workshop-backed resale is emerging as a credible, scalable alternative –not just a fallback. Other English-language countries are likely to be seeing similar trends. It is a global economy, after all. 

Europe-wide, Decathlon has been focusing on second-hand sales activity for a few seasons now. If they were sharp enough to outperform the market when others contracted, their push into pre-owned bikes should make everyone else sit up and take notice. This isn’t just a fallback move—it’s a forward-looking one that brings a community that usually walks past your store, into it.

A missed opportunity?

As this shift accelerates, and more e-bikes enter the second-life cycle via leasing returns and maturing ownership cycles, resale and trade-in programs will only become more central to the business model – especially for shops looking to serve both new riders and long-term customers.

Meanwhile, we know that price-sensitive first-time buyers often massively underbudget. They end up on sub-£1,000 bikes not built for daily use (cheap, under-spec’d, poorly assembled). Or they chose uncertified online e-bike kits – the fires from which have become the darling of The Sun et al.

This customer group of first-time or budget-conscious buyers could become reliable, ongoing business for your shop if you offer solid, service-backed second-hand options. And if you apply a structured and cost-defined sales-and-service bundle idea explained below, even high-mileage riders like food couriers can become worthwhile, loyal customers when supported with the right service-and-warranty bundle.

When that terrible quality new bike fails – spectacularly or otherwise – so does the whole idea of cycling as mobility: They drop out. Back to cars. Back to transit. Back to frustration.

That’s where you come in. With the right trade-in and reconditioned bike offer, you can:

• Offer better bikes at realistic price points
• Build trust with advice, guarantees, and real QC
• Turn first-timers into repeat customers, not just one-time headaches

How retailers can not just participate – but compete

Add a smart trade-in system to your shop, and suddenly you’re creating full product life cycles in-house. Your current customers, weary of spending money in today’s climate, have an extra impulse to get the new dream bike through a trade-up. You then offer their old bike (serviced, warrantied and reconditioned) to new, more price-sensitive buyers. You’ve gained two transactions, cleared stock, and added workshop revenue in the middle. 

We know the risks. We’ve all burnt fingers on second-hand bikes before. But that’s no reason to walk away: Instead, investigate what past mistakes really cost you and price in the risk. When you know your margins, you can price and offer 6-, 12-, or 24-month warranties with confidence.

A way to mitigate that is to add a trade-in value-add to your new bike sales strategy: yes, integrate second-hand into every new sale. Explain to buyers that if they bring their bike in for a yearly checkup, they will qualify for your value-boost trade-in plan, where an additional 10% is added to trade-in value and you guarantee trade-in for any next purchase. 

This is smart because urban riders are masters at thrashing bikes. They treat maintenance like a myth, their bikes live out in the rain, and they ride with brakes half-working and chains rusted stiff and somehow don’t “notice” until the wheel is buckled to the point it jams on the fork, or the chain snaps. A reason to visit you yearly that generates workshop income, is welcome for both your bottom line and their safety.

Recreational bikes are part of a trade-in policy, too, and they can be a goldmine. Plenty of good-quality first-generation 29” MTBs, road bikes, and hybrids are sitting unloved in garages, collecting dust. Trade-in programs can bring these back to life and open up value-packed options for new mobility riders, enthusiasts, fitness riders, and weekend adventurers. “Trade in your old unused MTB for a gravel bike / urban ebike”. In doing so, you use old product to unlock a dream for the new trend. Advertising on a window may well stir interest in people who previously walked past your window, certain you had little to offer them. 

Of course, not every bike should be accepted in trade. Set clear standards. Quote realistic values based on actual repair costs. Don’t be afraid to say no: Some bikes are better off as parts donors or recycling material, so be comfortable knowing where to draw the line. Low and mid-level 26” MTBs, recumbents, DIY e-bike retrofits, and 2005 e-bikes with their original battery are not your future sales funnel. They’re dead ends. Focus your energy on bikes with resale, reliability, and relevance. And if you don’t know your average cost to recondition, find out now: A trade-in offer needs to be an immediate offer to compel sales conversion; a 24h response time will mean cooling of consumer purchase desire. The customer will walk, literally. When they could have ridden if done same day. 

At the same time, retailers are gaining relevance in second-hand sales thanks to e-bikes. Battery health and support is becoming a defining threshold and cornerstone of sales. Most major resale platforms now treat 80% battery capacity as the QC pass/fail point for e-bike refurbishment. That’s surprisingly generous; leaving room for many resale opportunities that may have been prematurely written off, or for you to set 90% (maybe 400 charging cycles in?) as your limit to explain why your shop purchase really is a premium refurbished option (you’ll need to instruct trade-in customers to come with a fully loaded battery, and use a micrometer for current/voltage/resistance and basic training to estimate battery health). If a battery’s healthy enough and the motor checks out, you’re likely holding a valuable mid-tier or commuter e-bike that just needs a fresh owner (and an upsold extended warranty, perhaps).

This process of recalibration of second-hand bikes as a market is already happening in the UK. Shops like Cycle Exchange, WeBuyCycle, and others are building real businesses by focusing on economically viable trade-ins. On the flip side, some chains and LBSs are testing programs that filter out non-viable stock early (e.g. battered £150 supermarket bikes, worn-out 26” models) or redirect them to charity, parts, or scrap. The trade-in model is evolving fast – but it’s grounded in selectivity, not generosity. Yes you read that right: Smart retailers are using “trade in” working to entice even buyers with wrecks of bikes into the door and treat the “trade in” object cost as a simple marketing cost deducted from the transaction. Last of all, stripped down to a minimum – there are B2B programs that mean you too can simply send unfixed bikes to the online platforms like those listed in the opening of this article to outsource the risk and work while still capturing a trade-in new sale value. 

You already have quite a funnel for these sales. If your workshop is overbooked with tired old bikes, that’s not a backlog; its a sales funnel. Many of those bikes shouldn’t be fixed – they should be replaced. With a properly rebuilt ride and the right payment and warranty conditions, that starts a new customer relationship. If 10% of your second-hand buyers return to buy new second-hand bike again, that’s future revenue you own. Your second-hand customer base sees 90% one timers, but a 10% quiet growth with each round.

Financing and Warranty: Turn sold features into trust builders

And yes—financing is increasingly available and important for second-hand bikes. In many regions, banks and credit providers are starting to treat certified refurbished bikes just like new ones. That means better access, higher basket sizes, and easier conversion at the point of sale.

We can take a page from the second-hand car industry without becoming Mr. Wormwood (yes, Matilda’s dad). Offer buyers real peace of mind with a 6-month standard warranty, and the option to upgrade to 12- or 24-month service-backed packages. Want that 24-month warranty? Make it conditional on half-yearly or annual servicing in your workshop, which is invoiced and booked. Just like with the new bike sales trade-in value concept, that’s not just protection for the rider. That’s predictable pre-loaded workshop turnover and repeat footfall for you.

The mathematics is not difficult: A refurbished bike sold at £950 with a 30% margin (£285), Plus 2 service visits at £60 with £100 in parts, could offer a lifetime gross profit potential of £450+. Close that off with a junkyard marketing “trade-in” discount for the next bike, and you have a new lifecycle that justifies even a trade-in on a trade-in.

A playbook for trade-in success

A second-hand bike is a part of an entire value chain and should be integrated into your business process holistically. Bring customer lifetime value concerns into your processes ASAP: Ensure a new sale (usually completely detached from anything second-hand) includes it as an end-of-lifecycle value add that boosts your workshop in the meantime. 

Meanwhile Integrate second hand sales with calendar-planned maintenance to offer otherwise inviably long warranty, while boosting your workshop’s turnover again (perhaps only 20% of the buyers will do this – but that is new business you have secured, and protection from unjust second hand warranty claims from customers who don’t uphold the deal).  Don’t treat the sale as a one-and-done. Treat it as the start of an upsell and service journey. Done right, this turns every refurbished bike into a loyalty loop, not just a price-point play. This isn’t charity. It’s smart business. It’s how you turn your mechanical know-how into a real competitive advantage over online-only sellers.

Second-Life Retail Strategy: the 4 Levers

1. Trade-In Design: Set criteria, track refurb costs, evaluate bike condition, offer same-day quotes
2. Sales Packaging: Price refurbished bikes to reflect condition + warranty
3. Service Lock-In: Link warranty extensions to 6–12 month checkups
4. Funnel Activation: Use overbooked workshop and CRM tracking of trade-ins as lead sources

With a critically slowing market, trade-ins should no longer be considered fringe. When well executed, they’re a growth lever hiding in plain sight – an engine for new sales, deeper relationships, and lifetime value. Retailers who act now can capture both market share and margin before online players eat the rest. The model exists. Now it’s up to you to adapt it to your floor.

Yes, reconditioning and warranty carry costs, but they’re manageable with planning. By tracking average refurbishment costs and setting clear resale tiers, shops can manage margin risk while building a second reliable revenue stream and offering quality at compellingly accessible price points, which is a sales argument sorely needed in today’s economy. 

Bikes with your support don’t die, they circulate. Make sure they circulate through your shop.