There have been figures of 360% since 2010 bandied about, but is that really true? Here are the real figures of values customers have achieved since 2010, so you can make up your own mind. This is all legitimately tax-free and assuming that the machines in question are investment grade.
Value in 2010 Value in 2017
Laverda Jota UK spec £5,000 Laverda Jota UK spec £17,000
Ducati 916 SP low mileage £5,000 Ducati 916 SP low mileage £25,000
Honda CB750 sandcast £8,000 Honda CB750 sandcast £35,000 +
Honda CBX1000 Z £4,000 Honda CBX1000 Z £17,500
Ducati 900SS blue/silver £6,000 Ducati 900SS blue/silver £30,000
MV Agusta America £27,000 MV Agusta America £80,000
These are all figures that machines were bought for at those times and sold for in 2017. There are reasons behind these classic motorcycle price rises price rises, which are explained clearly. It is clear that this is just the beginning of prices starting to move towards much higher levels in the coming years. There are very few machines for an awful lot of buyers. There are a lot of wealthy people with a motorcycle license who don’t yet know that they hanker after such machines, but are waking up to them as their children leave home.
What is important is that the correct due diligence is undertaken on these classic motorcycles now, as once purchased, you own that machine. There are so many fakes and machines that look fantastic, but they will never be investment grade.
Will prices continue to rise at this rate? Look at the demographics in the above link (if you haven’t already) and you will see that there are so many buyers for each rare motorcycle in Europe alone. Also, classic car buyers are turning to motorcycles because they provide such excellent value and access to a truly global market, without the worry about left or right hand drive. I cannot stress how important this driver is for prices as the motorcycle market is tiny compared to the car market, so you will see so many new buyers making the switch from cars to bikes and this will speed up price growth profoundly. The other factor that will change prices beyond recognition, is China is entering the classic motorcycle market. China is the largest motorcycle market in the world.
Is this a bubble? No. For MV Agustas you have around 10,000,000 buyers worldwide, with the funds for such a machine, for only 360 available motorcycles. For Honda Sandcasts you have about 10,000,000 buyers with the money for only about 2,000 available machines. The classic motorcycle market has a very limited supply and more and more people are turning from classic cars to classic motorcycles for investment, for fun and because you can store them at a lower cost.
The figures are here, think this one through for yourself. This only applies to the correct make and model of classic motorcycle. It also only applies to investment grade examples and not every make and model of a certain age is a classic. It requires a deep understanding of the market, context and every single model of machine. If you are interested in investing in classic motorcycles, then call The Motorcycle Broker, and see how much fun such an investment like this can be for you. Then watch over time, as your investment grows.
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