A safe investment in difficult times
Vintage motorcycles hold their values beautifully during Covid 19 just like investment grade high end classic cars and art will. Investment grade vintage motorcycles are proving to be a safe investment in these difficult times as well as in good times. As every other investment crumbles away, what makes these machines such a safe haven asset? As traditional investment vehicles disappoint and burn investors, people are thinking about what they want from their investment. A stock or share only has the value the market offers, but when all is said and done, all you are left holding is a piece of paper. If you have invested in art, fine wine, vintage cars or vintage motorcycles, you at least hold an asset of value to the owner that a piece of paper can’t deliver. You can enjoy a painting, a car, a motorcycle or you can drink the wine.
Are all vintage motorcycles holding up well?
No. Every machine we recommend investing in is doing exceptionally well. But others are not doing so well, which is why we never recommended them and refused to acquire them for customers. It comes down to what is a classic? This is a piece I will have to save for later, as it’s a fascinating subject. There have been motorcycle shops claiming that any Ducati with an R in the name will increase in value. that is simply not true. Others claim that as Honda CB750 Four Ks and Phil Read Replicas are doing well then the F2 Hondas will do well. Not true. The all two strokes will do really well. Not true. Others claim that the next trend is early Fireblades. You will never make much if you follow such advice.
What is holding up and making profits?
The rare, desirable machines are the safe investment. Ducati Green Frames, 750/900SS Bevel Drives, Round Case GTs, M V Agusta 750 S and America, Kawasaki Z1 900, Honda CB750 Four K series, Ducati 916/996 SP/S. Honda CBX1000s, the correct racing motorcycles, to name but a few, are all excellent investments that are holding up very well in trying times. The same is true of the classic car market, which is seeing some increase in interest, after going. little flat for the last few years. We were working with vintage motorcycles during the 2007/8 crash and we watched which models held their price. We also watched the classic car market as well and new limited edition Lamborghinis were dropping in value but proper classic cars held their own, comparatively. So these late Ducati Superlegerras will now fall further in value. You have to know the correct vintage motorcycle to invest in, in the first place, if you are going to make profits. Whiskey is another great asset that investors are turning to in such unprecedented times as these, as you can see here. Vintage motorcycles have been creeping into the mainstream and investors have been educating themselves, especially since this piece in last July’s FT How to Spend it. It seems that Covid 19 will bring in new investors as people seek something more stable as a buy and hold asset.
Invest in what you like
I always advise investors to take time to go through which motorcycles they like the look of with me, at the very least. Because we live in times of change, the world is unstable. The old rules no longer apply and no one knows what the future holds for us. During these times of change people are investing in tangible assets because you cannot print more of them. There is a finite amount of gold, silver, vintage cars, Picassos or Green Frame Ducatis. They can create more money, but they cannot create more Ducatis. Yes they could 3D print something similar, but they would not have the correct engine and chassis numbers and hey would be really quite different, no matter how much the technology improves. So invest in what you like, because you may be looking at it for some time and no one wants to stare at something ugly for a long time.
Buy and hold
Vintage motorcycles are a buy and hold asset, not something to flip. I spend my life turning flippers away and they always move onto eBay and moan when they lose money. The general rule of thumb is that you double your money in five years and over ten years the profits are far greater. By chance, some machines can double in less than five years but banking on vast profits in a short timeframe is the same as entering a casino. To make sure that the market is your friend you must be happy to hold your machine for at least five years. If you want the really large profits, then hold for ten years and you will mimic what smart investors achieved in vintage cars between 2003 and 2015. They made outrageous returns because it was the heyday of the vintage car market. They will also enjoy massive profits as China enters the market and transforms it like it transformed the art market.
The perfect pension plan
Vintage motorcycles have proved themselves to be the perfect pension plan for numerous people. Profits are tax-free and returns are magnificent for those who are patient and who understand that their machine will go up, provided they have chosen the correct one and that it’s investment grade. Investment grade vintage motorcycles behave very differently to the run of the mill old motorcycle. 92% of vintage motorcycles are not investment grade and finding the 8% that are has become extremely difficult. You won’t find investment grade vintage motorcycles on eBay, in the same way you won’t find Picassos on eBay. Investment grade pieces are always sold through brokerage or change hands directly between collectors.
Make sure it’s investment grade
Make sure your vintage motorcycle is investment grade or you’ll be sorry. We are constantly turning away vintage motorcycles because they are not up to standard. It’s not just about the correct engine and chassis numbers, a motorcycle is far more complex than that. It’s about authenticity and being as close as possible to how it left the factory. There is no formula, every motorcycle is examined on its own merits and it depends on what is available in the market. It’s about context.
How do I invest safely in vintage motorcycles?
We have not bought a machine at auction in over a decade and for good reason. We have helped people out who have and they never buy there again. We don’t buy from private ads or eBay, because it just doesn’t work. To maintain our standards we need any vintage motorcycle we buy for at least four weeks. It takes that long to get it set up correctly and to chase out the bugs that are always rife in any vintage motorcycle. Many investors get scared out of the market by buying their first motorcycle and finding they have a black hole that they keep throwing money into. At The Motorcycle Broker we locate the correct motorcycle, which is investment grade and you pay what the contract says, which we agree in advance. We sort that motorcycle out for you for the price stated in the contract. There is no black hole that you keep throwing money into. You buy an investment grade vintage motorcycle at a fixed and agreed price with a no quibble warranty.
Quality and time delivers profits
Profits are not delivered from a mindset of how little you paid for your investment grade vintage motorcycle. Profits are delivered by the quality of your investment grade vintage motorcycle. Quality costs, there are no bargains to be had, and you have to pay for quality. Time delivers profits, not scrimping on the purchase cost. Anyone who invests in art will confirm this and if you want a Picasso you will have to pay for it. Those that seek to pay the least possible amount for their investment grade vintage motorcycle, always end up finding out why it was so cheap. For quality investment grade vintage motorcycles, or for an entire vintage motorcycle collection, call The Motorcycle Broker on 01803 865166. We offer motorcycle storage, motorcycle concierge services and we even sell your vintage motorcycle for you.
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