Bike-buyers have been told to "think twice'' before they purchase a brand new cycle. The warning came from a woman whose four-month-old cycle was recently stolen.

She gave the advice after she received a cheque from a local insurance company bike for more than a thousand dollars below the cost of a new cycle. The woman, who asked to not be named, said she bought the Yamaha RC 100 on November 22 of last year and it was stolen on March 16.

She said she bought the cycle for $2,578.60, which included $285 in insurance from BF&M. It was still under warranty when it was stolen but two weeks after the theft she received $1,519.20 from the insurer for a new cycle.

She said: "Do you know that BF&M are depreciating bikes on a daily basis now, as opposed to annually? And on a very high mark up? According to BF&M, bikes decrease in value by 50 percent.

"The insurance company gives the victims of such crimes the run-around for the little bit of money they give you, but yet they hold out their hand to take yours, and bet your bottom dollar it better be on time.'' She added: "Think twice before you buy a brand new bike and of course, you better check with Colonial or Argus first.'' However, BF&M vice president for technical services Ross Hillin said the woman should contact the company because her refund may have been calculated at 1999 rates for her cycle.

He denied that BF&M applied a 50 percent depreciation to the cycle in its first year, saying it would have been just 15 percent of the cycle's value.

And at just four months, or one third of a year old, the cycle depreciation rate would be just five percent, he said.

The formula used for calculating the refund to cycle owners who have lost their vehicles is the value of the cycle less the 15 or five percent of its value. Currently, RC 100s sell for $2,500.

A theft deductible, the amount the insurer bears for the loss of a cycle, is currently 25 percent of its value. For the woman's cycle that would be some $600. Mr. Hillin said: "Based on the information you have given me, that leaves some $1,780 which is more than the figure quoted by the letter writer.

It's difficult to comment further, but we do know that the cost of an RC 100 went up in January which is the base figure I used,'' he continued. "If your correspondent would be good enough to contact us. It appears there is a further $260 payable.''