Classic motorcycle market R.O.I. 2020
Classic motorcycle market R.O.I. 2020 demonstrates that the bikes perform well during COVID for many good reasons. Looking back over 2020, we are all well versed in the nature of the chaos that year has caused in investment markets. The instability has created a firmer demand for investment grade classic cars, fine wine, wrist watches and, most of all, classic motorcycles. It was interesting to watch the classic motorcycle breakers run out of parts for many machines, as home restorers were paid to stay at home and …..restore. Many investors took to the streets on their motorcycles and enjoyed the socially distanced joy that two wheels brings. As an enjoyable asset class, the motorcycles came into their own. In this piece I will only glance back at up to December 31st, as Brexit has increased prices even further and still demand is stronger than ever, so I will deal with that in another separate article. Demand for investment grade classic motorcycles became far stronger and we have never been busier. Prices for non-investment grade examples softened substantially and the divide between the investment motorcycles and everything widened, as noted at the beginning of the pandemic in this article. Most investors have accepted that all classic motorcycles are not equal and you have to pay for quality.
Classic motorcycles that have risen the most
The classic motorcycles that have risen the most is a most eclectic mix of machines. This is a really good sign, as it shows that they are being taken very seriously by investors globally.Having looked back and updated my article looking back at the ROI of classic motorcycles in 2018, all of the predictions I made have come to pass. It’s no surprise as the data we use proves and there’s plenty more headroom for incredible profits. The Bevel Drive Square Case Ducatis have increased by around 85% since 2018 for the 1976 model. Round Case Ducatis have performed really very well, as awareness of these beautiful motorcycles is raised. Investors are still not totally switched on to how rare these motorcycles are and how much value they offer, but times are now changing. Ducati’s iconic modern classic, Desmosedici, has performed very well and will continue to do so. It is the only Ducati built after 2000 that I advocate. As predicted, Honda’s iconic CBX1000 has now gone past the £30,000 mark and continues with strong demand. Kawasaki’s Z1 900 1972 is becoming very costly to find an investment grade example and demand is very strong for this machine. Honda’s CB1100RB is becoming very costly as investors become aware of this incredibly rare homologation special. The price of RBs has already doubled since 2018 and investors are now becoming aware of how hard it is to find an investment grade example. One great surprise has been the motorcycles built by Allen Millyard. It was an inevitability because his profile is now so high due to him being featured regularly on Henry Coles’ The Motorbike Show. Investors are waking up to his fantastic creations and his motorcycles are incredibly rare. He very rarely sells anything and they will always command large premiums. As predicted in this article I wrote back in 2013 (towards the end of the article), racing motorcycles and especially Yamaha TZ750s have offered incredible returns for motorcycle investors.
Classic motorcycles that have not performed well
I have never been an advocate of investing in Ducati’s Superlegerras because they are too new and we are investment brokers not speculation brokers. With the exception of the Desmosedici, most motorcycles present themselves as classics once they’re at least twenty five years old. So far, investors have lost money on the Superlegerras, especially on the 1199. Small to medium capacity British motorcycles are not doing so well, due to demographics. The UK manufacturers built vast quantities of Bonnevilles, Commandos etc and exported them globally. Many owners are now reaching the end of their lives and there just are not the people with the desire to own these machines. It means there are more and more coming into the market with less and less buyers for them, as predicted in this article written in 2013 (towards the end of the article). Vincents and Brough are performing very well indeed, but they must be investment grade. The same happened in the classic car market with pre-war cars. Big capacity pre-war cars sell very well, but small and medium sized engined cars have really suffered. This is all about demographics, as you can see in this article I wrote back in 2015.
To understand the market contact us
If you want to understand the classic motorcycle investment market, or to source investment grade classic motorcycles then Email, call or book a Zoom with The Motorcycle Broker. Email [email protected] or call 01803 865166
Look out for part 2 of this article coming soon to Inside Line members only.
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