Firstly, has Brexit damaged the market?
No. If anything it has strengthened the market for investment grade classic motorcycles. Machines which are not investment grade are not selling as well as well as before, but the real investment grade ones are increasing in value. You can read more about it in this article here. Since writing this article, investment grade machines are starting to rise in value at a far faster rate than the pound has been weakening.
What have customers actually made in terms of profit?
I started The Motorcycle Broker because a friend asked me to find him motorcycles worth up to £30,000 in 2010. He paid £27,000 for a 1979 Laverda Jota, a 1969 Honda CB750K0 sandcast, a Ducati 916 SP, a Honda CBX1000 and a 1978 Ducati 900SS. In 2017 his collection is now worth at least £133,000 and all of his profits are completely 100% tax-free. I purchased a machine in my own private collection for £13,000 in 2012 and sold it for £43,000 in 2015. So you can see that the model works and produces very high returns and is clearly one of the best investments around. These machines will continue to rise in value due to demographics, as you can read in my article here backed up by hard data and facts.
Have any customers lost money buying from The Motorcycle Broker
No. However I always point out that if you think you’re going to make a fortune in a few months or a year, then don’t do it. The market doesn’t move like that. This is a five to ten year project to realise proper returns. Machines increase in value, have a breather for a while and then increase in value again. They do not just go up on a daily basis.
Do classic motorcycles really offer better returns than London property or mutual funds?
If you buy the right investment grade classic motorcycles, they are genuine and in the right condition, then yes many do. Just look at the example above. And they are less hassle than renting property and loads more fun to ride and own. They are far more interesting than a share in a mutual fund.
Classic cars and classic motorcycles
Just look at classic cars to see where classic motorcycles are heading. You can fit eight classic motorcycles in the same space that one decent sized classic car takes up. In 2008 Chris Evans bought his 1959 Ferrari GTO for a record £5.6M. He reportedly sold it a few years ago for £18M. No wonder he’s smiling, he tripled his investment in a few years and all of it, every penny, was a tax-free investment! Just like a classic motorcycle. There are many reasons why these baby boomer classic motorcycles will rocket in value over the coming years, and are already offering fantastic tax-free returns. See more about this on the page on this site classic motorcycle investment.
Some ROI Charts
Some ROI figures of established classic motorcycles
One of the strongest emerging market motorcycle brands is Ducati. Here is a chart to consider for this powerful brand. There are very good reasons for this and I believe, along with other classic motorcycle experts, that this trend will continue and there is still plenty of room for far greater growth. Some models are predicted by classic motorcycle analysts and classic motorcycle experts predict that some models will reach £250,000 within 10 years.
The Honda Sandcast in the chart below is demonstrating that some of these Japanese and Italian machines are just beginning to realise their true investment potential.
There are signs in this chart, to those that truly understand this market, that there is an explosion in prices coming.
These Yamaha machines have a long way to go to realise their full investment potential. Understanding this market is the key to understanding what will rise, having analysed the previous sales data that these charts offer. Also, due diligence is absolutely vital to make sure that you have an investment grade machine.
Emerging market off road classic motorcycles.
Many people invest in classic moto cross and trials motorcycles for numerous reasons. One driver pushing collectors towards competition dirt motorcycles is that DVLA are becoming more demanding about motorcycles which are kept on a SORN. Many collectors are becoming weary of the bureaucracy and like dirt bikes, because there is no record of them with DVLA. They are also incredible fun to ride.
One of the under estimated brands of the dirt bike world is Bultaco and Montesa and I believe that these machines will explode in price once old memories are stirred. however they have been performing respectfully enough.
I think you will agree that, classic motorcycle investment is one of the best kept secrets to high return tax-free investing. To understand more about this exciting, tax-efficient, high return and fun way to invest, feel free to call and find out more.
Important legal notice
I am not registered with any financial authority and am not qualified, or allowed, to give financial advice. The views on this website are only my personal opinions and are in no way offered as financial advice. You must make your own decisions regarding any investments.