Going through the options the market offers seems to only really deliver risk, fear, tax implications with any guaranteed interest barely worth thinking about. So why are so many people raiding their pension pots and investing in classic motorcycles and classic cars? Are they just profligate and foolish, or do they know something the rest of us don’t know?
They know something the rest of us don’t know. Yes the classic vehicle market is filled with pretty old vehicles that bring a glow to our hearts, but they won’t offer anything other than losses when times get very tough. But, if you know the market and buy the right machine there are great profits to be made. Also, all of those profits are legitimately tax-free. No strings, no clever schemes, they are chattel, which means that they attract no income tax and no capital gains tax. If you want proof, here is a letter from H M Revenue and Customs stating classic motorcycles are tax-free to collectors.
The classic car market has a lot of customers chasing too few cars and now everything is classed a classic. It feels a little bloated, but it is driven by the demography of the baby boomers. It just means when things get really tough, what is considered a classic now will just be considered a very pretty old car and will devalue. However, the classic motorcycle market is less developed and the demographic is changing. The old boys who grew up with British machinery are reaching the end of their lives and the baby boom generation are hankering after the emerging market classic motorcycles they grew up with. As the classic car market is now reaching a bit of a peak, before taking a breather, buyers are now starting to look at the classic motorcycle market for value and they will start to look to the value provided by the motorcycle market. The trickle will become a flood as car buyers realise the value bikes provide, as well as unfettered access to a global market. The cars are limited by left and right hand drive which motorcycles don’t suffer from.
From this emerging market a few people have been enjoying incredible returns, far greater than property and the market is still very underdeveloped. One customer paid £20,000 for a machine in 2012 and has just sold it for £150,000. Another paid £10,000 for one of my machines in March 2012 and has sold it for £28,000. These machines still have a long way to go until the market has reached its peak and for very good reasons. Those reasons are driven by demographics and cost of restoration. Then there’s a factor that will make this market go completely parabolic. China. The largest motorcycle market on this planet and which has not allowed imported motorcycles since 1999. However, this is going to change some time soon. But I never look at this phenomenon until it has happened, even without China these machines will have to increase in value by vast amounts. Also remember that the people who bought these machines, they are not fools. They understand that they will vastly increase in value.
Apart from enormous tax-free profits, such machines are incredibly reliable and great fun to own and ride. There are very few British motorcycles from the 1950s, 60s or 70s that can be ridden to Italy and back without severe, inconvenient and costly engine surgery. Emerging market motorcycles will only require and oil change after such a journey. Many such motors a re good for 100,000 miles before being rebuilt.
I am getting more and more customers giving up paying money into a pension pot. Instead they are taking finance on an emerging market classic motorcycle and paying the finance on that machine instead of into a pension pot.
I am not claiming that I can guarantee you that you too will enjoy financial alchemy of turning £20,000 into £150,000 in two years. I cannot guarantee anyone anything. But what I know about classic motorcycles, and with nearly thirty years in the industry, I can say that substantial tax-free profits, far outweighing anything financial services have to offer, can be enjoyed over the next five and ten years. I can also say that the sooner the market is entered, then the greater the profits.
If you would like to know about enormous pension returns, the best pension returns, tax-free and you are curious about classic motorcycles as an investment there is only one place to go. If you would like to know more about investing in classic motorcycles, require a discussion about what will rise in value, and what will not, and to understand what an investment grade classic motorcycle is, then contact The Motorcycle Broker here. It’s a great site with actual ROI charts from previous years, classic motorcycles for sale, services including appraisal, sourcing machines, with more blogs and videos.
The Motorcycle Broker. Helping others to invest safely, and tax-free, in classic motorcycles.
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