Man pleads guilty to stealing $100K in bikes from Lance Armstrong storage unit

[AngryScientist]

Originally Posted by 54ny77

Has nothing to do with income spectrum. Ever live in a small place:

Very wealthy people don't generally live in small spaces...

I would have guessed LA had enough space in his houses/garages to store this kind of stuff; but obviously I'm wrong.

[rothwem]

Originally Posted by 54ny77

Storage is an amazing business. No tenants to complain about clogged up toilets and loud neighbors. And if they don't pay, ya get to lock the door.

Enh, I've got a couple friends that owned storage unit facilities and sold them, its a much more active investment than people realize. I've got a two unit rental property and I really only have to do anything with it during tenant turns, which happens every couple years.

Storage facilities often have 50-60 units, and leases are typically month to month, so there's more turnover. It was so much work that one of my friends had to pay someone to staff the facility, and that was a giant pain in the ass.

So yeah, I guess the lesson is that its more work than it seems like.

[rwsaunders]

It would be funny if they stole the 7 Tdf jerseys, then returned them.

[Derosid]

Originally Posted by peanutgallery

What -7 has stolen from others had much greater value

Agreed.

[prototoast]

Originally Posted by Baron Blubba

That insurance estimate reeks like when people visit my shop and ask me to write them a quote for insurance on the value of their ancient Calfee Dragonfly with Sram Red 10 speed and first gen Zipp carbon wheels that should have been responsibly retired a long time ago, which they accidentally left on their roof rack while driving into the garage.
"Cost me $13,000 new! Top of the line! Classic! And that was in 2006 money! Today a bike like this has gotta go for at least $18Kay!"

I disagree with this. Because of his celebrity, any bike that he rode immediately has a higher value, and it sounds like they have a track record of auctions for his old bikes to support this.

I will note that the one bike that was not listed as being written by Armstrong, is just a frame valued at $500, which is much more in line with the market.

[benb]

Originally Posted by AngryScientist

Very wealthy people don't generally live in small spaces...

I would have guessed LA had enough space in his houses/garages to store this kind of stuff; but obviously I'm wrong.

I don't think he even lives there anymore.. he definitely had to downsize.

[54ny77]

Self-storage units help with the issue of occasional grease splatter on frames... when one has tight living quarters....

[unterhausen]

I'm amused that I was going to recommend the person that needed to temporarily store bikes get a storage unit. Still seems like an okay idea.

We had a storage unit for a while, then I got rid of it and figured out other places to store everything. Then MiL sold her house and moved into memory care. She didn't want to get rid of some of her stuff, so we got a storage unit. I didn't move much of our stuff into it, and when she passed I gave everything away. The storage unit business seems to depend on raising rents on existing customers an unreasonable amount every year. Just not enough to get people to reassess if it's worth it.

The funny thing about the storage units we used was that they were built by the guy who owns the local Harley dealer. It has been obvious for years that the last section of 322 that is still 2 lanes needed to be widened. So what this guy did is build as much stuff as he could as close to the existing road as he could. When Penndot released the candidate routes for the 4 lane roads, all of them left his property untouched. He immediately put all his buildings and the storage units up for sale. In the past, I have seen recommendations that people build storage units in places where they think there is going to be demand for the land later. I'm not sure that's a great idea, it does require some work of the owner.

[JedB]

As much as I hate thieves, I'm enjoying the irony of this scenario.

[NHAero]

Originally Posted by 54ny77

Self-storage units help with the issue of occasional grease splatter on frames... when one has tight living quarters....

You need to use wax instead of grease when cooking.

[sg8357]

Originally Posted by JedB

As much as I hate thieves, I'm enjoying the irony of this scenario.

The thieves claimed they were forced to do it,
in order to maintain their credibility in the Thieves Guild.

[LadyDog]

Originally Posted by Peter P.

Shouldn't your quote be based on current replacement value vs. original cost?

I have an "Actual Replacement Value" clause in my insurance which means if my 1997 Bilenky.

Yes, if one has replacement cost value, the settlement would be to repair/replace with like kind in today's terms.

If you have actual cash value, depreciation is factored in. Unfortunately your 1997 Bilienky is likely not worth too much after 17 years.

[Baron Blubba]

Originally Posted by Peter P.

Shouldn't your quote be based on current replacement value vs. original cost?

Good question. As others have said, in my experience it is policy dependent.
Some policies will replace the bike based on its depreciated value, and some on its new value.
Where it gets sticky is when a bike is 20 years old and has an actual value of maybe $1000 in its current condition (but that's market dependent so actually not relevant), and could be replaced by a superior bike for significantly less than the bike cost in say, 2005.
This is really the insurance company's problem, yes. And if the policy clearly states they will compensate the owner of the bike for its original value, no matter the age or condition or circumstances, then it's a clear cut case for me.
However, in less clear cut situations, I am very wary of committing fraud and overvaluing a bike because someone insists that their bike was once worth $13k (and sometimes then dares to claim that the bike has appreciated in value), when replacing the bike with something vastly superior would cost significantly less.
What I usually write is, "The 2005 Dura Ace rear derailleur (for example) on this bike originally cost $350. This derailleur is no longer being manufactured. Replacing it with a current-generation Dura Ace rear derailleur would cost $500."
I'm using parts and $ values as examples, I'm sure they are not accurate.

All I'm really saying is that it rubs me the wrong way when people try to beef up their numbers for insurance claims. I do my job, charge appropriately, and let the bike owner and the insurance people hash it out. If I'm called upon to explain in more detail, I do --this has only happened once or twice out of 20+ quotes I've made.

[54ny77]

Funny thing is rarely ride my mtb. It sat a year or two. It was, in a word, nasty. Took several scrubbings with simple green and dawn to remove the film. Gave me dishpan hands....

Originally Posted by NHAero

You need to use wax instead of grease when cooking.

[NHAero]

Originally Posted by Baron Blubba

Good question. As others have said, in my experience it is policy dependent.
Some policies will replace the bike based on its depreciated value, and some on its new value.
Where it gets sticky is when a bike is 20 years old and has an actual value of maybe $1000 in its current condition (but that's market dependent so actually not relevant), and could be replaced by a superior bike for significantly less than the bike cost in say, 2005.
This is really the insurance company's problem, yes. And if the policy clearly states they will compensate the owner of the bike for its original value, no matter the age or condition or circumstances, then it's a clear cut case for me.
However, in less clear cut situations, I am very wary of committing fraud and overvaluing a bike because someone insists that their bike was once worth $13k (and sometimes then dares to claim that the bike has appreciated in value), when replacing the bike with something vastly superior would cost significantly less.
What I usually write is, "The 2005 Dura Ace rear derailleur (for example) on this bike originally cost $350. This derailleur is no longer being manufactured. Replacing it with a current-generation Dura Ace rear derailleur would cost $500."
I'm using parts and $ values as examples, I'm sure they are not accurate.

All I'm really saying is that it rubs me the wrong way when people try to beef up their numbers for insurance claims. I do my job, charge appropriately, and let the bike owner and the insurance people hash it out. If I'm called upon to explain in more detail, I do --this has only happened once or twice out of 20+ quotes I've made.

I'm pretty sure my policy is replacement value.
So - custom Bingham with top components should be easiest to value. How that works out on a 52 year old Bob Jackson is an interesting question. And then other bikes are in the middle. Is replacement value for my 2016 Supersix finding another Supersix with top components of that vintage or a bike that is comparable today (top tier race bike)?