Classic motorcycles outstrip inflation

Classic motorcycles outstrip inflation and continue to do so even in these challenging times. Classic motorcycle investment has always outstripped inflation because as the cost of living goes up, so does inflation, so does the number of investors seeking safe haven assets. This creates more demand, but unlike money, you can’t print more classic motorcycles. When the banks have their next crisis investors cannot have more than about £1,000,000 insured in banks, but when that happens classic motorcycles won’t get swallowed up by a crashing bank. This is why tangible assets like classic motorcycles, classic cars, watches and art continue to increase in value and outstripping even severe inflation. Profits from classic motorcycles are also tax free if part of a private collection and they’re highly tax effective to company owners.

Classic motorcycle investment outstrips inflation
The MV Agusta 750 Sport from 1974 clearly demonstrates The Motorcycle As Art.

Only investment grade classic motorcycles outstrip inflation

Only investment grade classic motorcycles outstrip inflation, because the market is continuously dividing, as I wrote several years ago here. The market has divided into investment grade classic motorcycles which set the tone for prices, whereas pretty classic motorcycles that are not investment grade tend to crash in value when times are hard, they also never reach the values that investment grade pieces do. An investment grade classic motorcycle needs to be as original as is possible and this varies for each type of machine. Service history is usually fake, as no one kept the service history of their motorcycles in the 1970s and 80s, especially when their machine was five or ten years old and not desirable at all, prior to it becoming a classic. Service history, even if it is genuine, often just means bills charged by franchised dealers who took the money but didn’t do the work on the bike. It’s about how good an example the machine is, how authentic and genuine the components and finish are. If the machine is mechanically excellent has a great relevance to the value of the machine, especially with MV Agustas, bevel drive Ducatis and Honda CBX1000s as all of these machines are exceptionally expensive to put right. 

classic motorcycles outstrip inflation
Brittens have proved themselves to be incredible investment increasing ten fold in ten years

Examples of returns on classic motorcycles

Examples of returns on classic motorcycles can be seen on our ROI page here, but I’ll give you some individual examples here. In this piece I wrote in 2014 here I said a Honda CBX1000 was about £12,000 and would reach about £20,000 by 2020. That was conservative, I was shocked that they’d gone from £5,000 in 2010 to £12,000 in four years and they’re still increasing. I believe that the Honda CBX1000 will hit £100,000 within ten years of this article. I wrote in 2013 about the Honda Sandcast here I said by 2024 that the Sandcast and 1972 Kawasaki Z1 900 would hit £30,000, (up from £16,000 and now £40,000 and £50,000 respectively), the TZ750 Yamaha would be £60,000 (up from £20,000 and now about £75,000+) and Carl Fogarty’s championship winning 916 Factory bike would be several hundred thousand pounds (it made around €650,000). Well these machines have all smashed my predicted price increases and we’re still two years short of the target date. Read this article I wrote at the beginning of 2019 and you’ll notice I was again overly conservative with my price predictions and bang on the money predicting which motorcycles would increase and why. Investors are seeking out the next classic car market and the motorcycles are proving themselves to be worthy contenders to safely park money. They take up much less space than classic cars and there’s no left or right hand drive issues around the bikes. They are also very easy to move from country to country and they’re beautiful to look at and great fun to ride.

Classic motorcycle outstrip inflation
Sure footed as it pitches into the corner and keeps delivering profits.

Classic motorcycle price predictions and which models to buy

Some classic motorcycle price predictions and which models to buy if you’re looking at classic motorcycle investment. This list is only for investment grade classic motorcycles and I will start at the top end of the market. 1974 Ducati 750SS Green Frame which will move into seven figures within ten years of this article. 1975 Ducati 750 and 900SS which will also hit seven figures within ten years of writing this article and is even rarer than the Green Frame. All of the Ducati round case series, the Desmosedici (which is already increasing steeply in value and will go over £500,000 within ten years. Ducati 916 SP and 996 SPS series, some 916 SPs will hit about 30-40% of the price of a Ferrari F40 within ten years. The Ducati 851 SP and 888 SP series are extremely rare and may well follow the 916 series and give them a run for their money. The MV Agusta 750 Sport will hit seven figures  within ten years. The Honda Sandcast and 1972 Kawasaki Z1 900 will hit £250,000 within ten years. The Laverda SFC750 will shadow the 1975 Ducati 750 and 900SS and I think Jotas will become very expensive. If you want a free Zoom consultation about investing in classic motorcycles, then get in touch as we are always happy to explain the market. We’ve never got it wrong before and there’s good reason for that, because we understand the market and how it performs in all financial conditions we’ve experienced so far. If you want investment grade classic motorcycles, call The Motorcycle Broker.

The Motorcycle as Art
The Laverda Jota will deliver great profits too.
Paul Jayson

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