Snowmobile Economics:

Trading in to buy new

Contributed by Mike Carr

Published: March 19, 2010

FACT: The true cost of buying a new snowmobile has decreased 3% from 1996 to 2007.

How's that?

Let's look at the facts. U.S. Census data shows that the national median family income was $35,172 in 1996 (one of the best snowmobile sales years in the last 20) and $50,233 in 2007 (most recent year for data).

A 1996 Ski-Doo MXZ 600 (583) cost $5,999, about $6,450 after taxes. The price for a new snowmobile in a similar spot in the 2007 market, an MXZ 600 H.O., was $7,349 or about $7,800 after taxes. That means, in relation to the median family income, the cost of buying a snowmobile was actually 3% more in 1996 than it was in 2007.

Yes, it actually cost less to buy a snowmobile, relatively speaking, in 2007 than in 1996! Not to mention today's snowmobiles are the most technologically advanced sleds ever built!

For snowmobilers the recreational value of our winter passion is significant, if sometimes difficult to quantify. We endure yearly challenges in pursuit of our sport, including nature's sporadic snowfalls. However, it's more than worth the time and expense to enjoy another season on the snow, especially if we're on a new sled!

Excitement, expenses, and calculations
Some of the best things in life are free, unfortunately, motorized recreation is not. Buying, maintaining, insuring and operating a snowmobile isn't cheap. But, there's nothing like riding your own new sled!
Today's machines are the best ever made and there are dozens of models, features and price points (see our annual Buyers Guide and Interactive Buyers Guide on this Web site).

Snowmobiles run the gamut from entry-level starting at about $5,500 to high-end offerings with an MSRP north of $12,000.
But owning a sled isn't like buying a stock. You can't always consider cost/benefit ratio and return on investment. We know we're going to enjoy the ride!

However, in today's market it's smart to understand the budget you'll need, so let's run some numbers. These are only estimates and include the basics you'll need to get started, with a new machine. You can supply other dollar amounts and inputs that fit your own situation.

Let's assume our brand new liquid-cooled 2-stroke 600cc mid-range sled will cost about $9,000, plus a 5% sales tax of $450. Naturally, we'll want to add some extras to that (studs and/or various accessories), so figure we invest another $550 to spiff it up a little more to our liking. Our out-of-pocket cost is around 10 grand.

If we finance the purchase, there may be some interest expense and possible fees, but rates are currently low and zero financing deals are available from some manufacturers, so we'll ignore that aspect for now.

Now let's figure we run our snowmobile for four seasons (although you may easily do more with today's sleds), and rack up about 1,200 miles per year. That's slightly above the national average. Then you trade it in for some new iron with about 4,800 miles on the clicker. If we swap our machine after those four seasons and receive a trade allowance of $4,000 for it, the depreciated cost of ownership for the four seasons is $6,000.

Fair enough, but what about the other costs of running this snowmobile for four years?
If we're averaging 15 mpg, that's 320 gallons of gasoline purchased. We'll use an average of $2.80 per gallon, for a total fuel bill of $900. Barring any accidents or catastrophic engine problems, the cost of oil, spark plugs, belts, carbides/wear bars, coolant, hyfax and other essentials might run about $400 for those four seasons. So, total operating costs would be about $1,300.

Add to that state registration costs ($100 for four seasons) and four years' membership in a local snowmobile club (about $100, and the best bargain in this equation), and we've added another $200 to the tally.

Insurance will run about $400 per year, with collision, liability and uninsured operator coverage. That's $1,600 for four seasons. Standard mechanical maintenance and repairs might run about $200 annually, with the first year being covered under warranty. That means about $600 to keep the sled in top operating condition.

Now let's do the math to compute total "expense-per-year," and the "per-mile" cost. For the overall tally we add ownership cost ($6,000), fuel ($900), consumables ($400), registration and club dues ($200), insurance ($1,600) and maintenance ($600). That comes to $9,700, or about $2,425 per season. The cost per mile, at 4,800 miles, is $2.02. If our choice is a 4-stroke model, the equation changes somewhat (higher initial cost, greater fuel efficiency, less oil consumption and maintenance and longer engine life), but the conclusions are similar. It would make sense to measure the 4-stroke over five or six years of operation, due to its longer life expectancy.

The right decision
Yes, the above is a considerable expense, and it doesn't include the cost of a trailer, clothing, or other necessary gear. If you travel to go snowmobiling that adds cost. The numbers are higher if you choose a more expensive model, run it less than four seasons, or ride less than 1,200 miles per year.

Likewise, if you buy a less expensive model or keep the snowmobile longer than four years, do all the maintenance yourself, your costs can decrease. And you could go in with a buddy to buy a trailer so you both can haul your sleds on trips. Ultimately snowmobiling is better as a group activity anyway!

And for our money, NO OTHER MOTORSPORT compares to snowmobiling! The thrill of gliding through the woods, pushing powder or climbing a mountain is incomparable, whether you ride 300 miles per season or 3,000, on the latest sled or an older model, it's all about having fun, and that's not something you can put a price on. For many riders, snowmobiling is the last bastion of true freedom.

There's more good news too!

This is a tremendous buyer's market, with reduced prices and attractive incentives that deserve attention if you're considering a new sled. Of course, if the math really concerns you, there's one sure way to reduce your cost per mile … ride a lot more miles!

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