The Coronavirus is driving money into vintage motorcycles. Well who would have seen this coming? Not me. The Coronavirus has been causing turmoil in the stock market, as you can see here. The money that comes out of the stock market needs a home, as banks are no longer considered safe, since the crash in 2007/8. Property isn’t offering the returns it once did, as how high can prices go? Gold is not being seen as the safe haven investment it once was, as you can see here.
Investors are looking for profits.
Who would have thought the Coronavirus would be driving money into the vintage motorcycle market? This is the time when new asset classes attract attention, especially as the planets are aligning so well for vintage motorcycle investment. In July 2019, the FT’s How To Spend It published this piece about how vintage motorcycles are an emerging asset. Classic cars are having a well earned breather and investors are seeking a less developed market. The vintage motorcycle market is less developed than the car market, but it’s just gaining traction, and there are great profits to be enjoyed. For investors to throw some money at a buy and hold tax-free, non correlated asset, such as vintage motorcycles is now a no brainer. Our phones are hotting up with such new clients who are diversifying into motorcycles once they understand there’s no left or right hand drive. They get excited that they can move these motorcycles around as a truly global asset class and they love our motorcycle storage rates and motorcycle concierge service.
Vintage motorcycles are a perfect alternative investment.
Vintage motorcycles are a perfect alternative investment as they take up much less room than classic cars. They are easy to move globally and they are tax-efficient for companies, wasting at 20% p.a. and being tax-free for individuals on profits. Although they are a buy and hold asset and investors are running for cash, they work perfectly for a percentage of a portfolio. Investment grade vintage motorcycles have increased well over the last decade, but they are still at the bottom of their curve. A 1974 Ducati 750SS “Green Frame” (The Ferrari GTO of vintage motorcycles) is between £150,000 and £200,000 and the MV Agusta 750S (The Bugatti of vintage motorcycles) is up to £130,000. These are nowhere near the values of the equivalent classic cars (US$75,000,000 for the Ferrari and US$40,000 for an equivalent Bugatti here). There is a powerful demographic drive for vintage motorcycles as you can see here, from people in their forties, fifties and sixties. What ever your view on vintage motorcycle prices, it’s obvious to see how incredibly under-valued they are and how there are definitely big profits to be had.
Finding the Bugatti or Ferrari GTO of vintage motorcycles will make kings of small players.
Finding the Bugatti or Ferrari F40 of vintage motorcycles will make kings of small players. Having that market knowledge is the key, but bagging enormous profits requires more than that. Although there are only around 50 investment grade Ducati “Green Frames” or MV Agusta 750Ss in the world. There are around 800 examples of each to choose from. If you have the information which isn’t in the public domain and understand through decades of experience a genuine investment grade vintage motorcycle of either of these examples, then go and find one. But if you don’t know absolutely definitely for sure how to know you have an investment grade piece, then you need to find the one place that will assist you and there is only one place to go.
Buyer beware and engage the help you need.
MV Agusta built 450 750Ss and Ducati 410 “Green Frames”. It appears there are around 800 of each in the market, as there are people who slyly fake these motorcycles. Most of the remaining pieces are not investment grade or are converted differing models and some are just built from scratch. The Motorcycle Broker has access to factory records and other information not in the public domain. We have also been involved with such exotic machinery since 1994. You get a full due diligence file with your machine, proving it is investment grade and it goes through our rigorous workshop procedures. This is the only way to safely buy an investment vintage motorcycle which will increase in value. If you want to invest safely in the vintage motorcycle market, speak to the vintage motorcycle market expert. Speak to The Motorcycle Broker on 01803 865166.
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