It is possible to invest in Classic motorcycles, but people should only do so if they know about the machines and never put themselves in a position where they have to sell quickly. It is becoming clear, that there are three powerful sectors of emerging markets in the world of the classic motorcycle. Firstly the 1960s-1990s Japanese classic motorcycle. Secondly the Italian sports motorcycle from the 1970s-1990s. Thirdly the off road motorcycle from 1960s-1980s.
These markets are exploding and have enormous ground to make up on the British motorcycle marques and they will cover that ground rapidly for three reasons. Firstly the generations of buyers of British machines, inspired by nostalgia, are ageing and dying. Yet the generations of buyers of the new emerging classic motorcycle markets are acquiring more wealth, their children have left university and they are concerned about safe havens for their wealth (It has already been hinted that the theft of bank balances in Cyprus is the new template for bank bail outs in Europe).
The nostalgic drive of the Japanese and Italian machines people our age drooled over as adolescents make them desirable- far more desirable than the anxiety and lack lack of interest of leaving our hard earned cash stuck in a suspect bank.
Secondly there are limited supplies. There are only 35 Honda CB750 Phil Read Replicas left in the world of 150 made. There were only 299 Honda CB750 die cast machines ever produced. There were only 500 Ducati 916SPs, 996 SPSs, Honda RC30s ever produced.
Finally, the cost of restoring these machines far out weighs their value and the availability of parts has now dried up in many cases. Another factor is that these machines are reliable and fun to ride. How many 1970s Triumph Bonnevilles can manage a trip to Italy and back without self-destructing? Yet a well restored Kawasaki Z900, or even RD250 will manage it requiring only a cheap service once home.
Since 2008, many of these machines I’ve mentioned, along with the moto cross and trials motorcycles from the same era, have increased in value by 100%, have a limited supply and have an enormous amount of ground to make up, with more people chasing each machine every day that passes.
It is always far more economic to buy a machine which is restored over restoring a machine yourself or paying for a machine to be restored. And machines in incredible unrestored condition are always going increase in value, in the long term, over a restored machine- it’s all about the patina.
But the most important point is, buy what you like, ride it, maintain it well and enjoy it. Never put yourself in a position where you have to sell quickly and you will probably see your machine increase in value. Also, as our countries are printing more money, they are devaluing our currencies- look at the Japanese Yen! You can't print more Yamaha XS1100s, Suzuki GS1000s etc etc. Enjoy your bikes and you may well increase what ever hard earned cash you put into them. But most of all enjoy these wonderful machines and get them back out on the roads.
Posted: 12/04/2013 at 08:55
