The best classic car investment is a classic motorcycle

The best classic car investment is a classic motorcycle and no wonder when you look at the returns. We have gone through the data with various experienced investors in the classic car market and it’s clear that the best future profits will come from classic motorcycles. When you look at the 1974 Ducati 750SS green frame, or the MV Agusta 750 Sport, you can see machines which have increased several hundred percent over the last ten years. However, they are both at a fraction of one percent of the value of the equivalent classic car. The green frame Ducati is clearly the Ferrari 250 GTO of classic motorcycles and the MV Agusta is the 1930s Alfa Romeo 8C, especially with half an Alfa 8C motor in it, of classic motorcycles.?

The comparative values are US$300,000 for the Ducati and ￡150,000 for the MV Agusta, that is if you want an investment grade example. They can be picked up for less, but you will find that you get what you pay for and it’s far less costly to buy an investment grade example right now. If you do try and source an example which is not investment grade in the hope that you can find parts later and bring it up to spec, you will very likely be disappointed. Read my article on LinkedIn about buying an investment grade 1974 Ducati 750SS "green frame" and you will see why. Many of these machine were extremely rare to start with, there are many fakes in the market and they had unique parts which are just not available now. Fakes are exposed by expert buyers who have access to information which is not in the public domain about these machines.

Who would have guessed that the last Ferrari 250 GTO would have sold for US$70,000,000 in 2018 when one sold for US$31,000,000 in 2010 and US$3,500,00 in 1996 as you can see in this article?https://www.bbc.co.uk/news/newsbeat-16926423??No one would have imagined that a Ferrari 250 GTO sold in 2000 for US$6,500,000 would reach such dizzying heights five years ago over an eighteen year period (as you can see what this one sold for in 2000 in this article??https://driving.ca/ferrari/auto-news/news/this-ferrari-may-have-just-become-the-worlds-most-expensive-car?. Ferrari 250 GTOs are continuing to rise in the off market as some are considering a sale. The green frame Ducati now selling for just US$300,000 is clearly the Ferrari 250 GTO of the classic motorcycle world and will clearly go into the millions of pounds in value for an investment grade example over the next ten years.

The Alfa Romeo 8C in this link sold for US$19,800,000 in 2016?https://www.glenmarch.com/auction-cars/show-backup-image/4967?and off market prices are rising. The MV Agusta 750 Sport is clearly the Alfa 8C of the classic motorcycle world and investment grade examples can still be scooped up for ￡150,000. There are many more examples of classic motorcycles that are just a fraction of one percent of the equivalent classic car and it is clear that they will have to move to well beyond ten percent of the value of the equivalent classic car. Many experts believe that the motorcycles could well end up at 20-40% of the value of the equivalent classic car, just as they are for new motorcycles. Prices for investment grade classic motorcycles have already increased, due to a demographic drive we wrote about eight years ago in this article in this link?https://www.themotorcyclebroker.co.uk/what-is-driving-the-prices-in-japanese-and-italian-classic-motorcycles-from-the-1970s-and-80s-heres-some-hard-facts/?Many of the classic motorcycles which are being chased down by investors are much rarer than the equivalent classic cars. Most people throughout the world started life on motorcycles through the 1970s and early 80s, but the superbikes were produced in very small numbers. Motorcycles had a much tougher life than cars from this era and very few are left in investment grade condition today. Demand has increased over the last thirteen years as classic motorcycles start to become a respected tangible asset, just like the cars.

Since 2017 classic car investors have been starting to enjoy classic motorcycle ownership, because of the incredible value the bikes offer and the future returns are obvious to see. The motorcycles also offer a larger global audience because they are not affected by left or right hand drive. They take up far less space than the cars and are easier and more cost effective to move around the world. Motorcycles have struggled to shake off their oily rag and Hell’s Angel image from the minds of investors who have memories of cold wet nights on their motorcycle in the 1970s or 80s. However, with motorcycle brands such as Harley-Davidson and Ducati having grown into lifestyle brands since the mid 1990s; motorcycles have come much more into the awareness of the public as machines of great beauty. They are appearing in television programs, films and adverts with Kiera Knightly appearing on a classic Ducati for a perfume company. More and more companies are wanting to be associated with beautiful motorcycles and the slightly unbridled theme and edge they offer.?

Women motorcyclists have increased global sales by 35% between 2008 and 2018. Many of these female riders are, surprisingly, over sixty years of age. The average age of motorcyclists is now fifty years of age, so there’s clearly a need to get young people back on bikes. This is a challenge being taken on by the Vintage Motorcycle Club of GB, which I am working on with them to ensure more young riders enjoy the magic of two wheels. The cost and restrictions of accessing motorcycling has reduced the number of young riders taking up this joyous past time, but action is being taken in the industry to address this.

We work in the parallel market by wholesaling new motorcycles to meet export demands, as well as specialising in investment grade classic motorcycles. China has been snapping up as many new motorcycles as can be acquired. Most people in China start on a motorcycle, and have done for many decades. They have the largest motorcycle market on the planet with sales of 20,000,000 new motorcycles a year. Until 1997 they were riding small capacity Japanese motorcycles until the importation was banned overnight to stimulate home market manufacturers and to elicit more foreign currency reserves through exporting their machines. Restrictions on importing new motorcycles have now been dropped and demand is extremely high for new machines. It won’t be long until they are allowed to import used motorcycles and with that, classic motorcycles and classic cars. China understands the collectibles market better than most and once the demand starts for classic motorcycles and cars, prices will become unrecognisable.

India is another enormous motorcycle market with sales of 16.2 million a year and they are demanding new motorcycles only for their parallel market. The Indian market is more restrictive with large import duties, but there is still enormous demand for new motorcycles only, especially large capacity BMWs. Like China, used motorcycles cannot be imported into India but this will change over time. The collectibles market is not so popular in India as it is in China, so the demand for classic motorcycles will take a lot longer to establish there, but it is an inevitability.?

The classic motorcycle market is developing quite quickly and will offer unimaginable profits and joy over the coming decades. This is a global market and what is most surprising is that prices for the top of the market classic cars have not climbed higher quicker. There were only 39 Ferrari 250 GTOs built to begin with, yet there are over 3,000 billionaires on the planet. How long until we have the first billion dollar classic car sale? Not as long as many believe I suspect. Classic motorcycle prices are ready to explode and have got so much head room, that now is clearly the time to get into this exciting market. Looking for bargains is not the way to ensure that you acquire an investment grade classic motorcycle or car. Bargains are bargains for a reason and being a guardian of history, which is what ownership is all about, is all about authenticity. Who wants to own a fake Van Gogh? It’s not about how cheaply you buy the vehicle, it’s about how much you sell it for when the time comes. Try to save a few thousand here and there will only end in tears. It is clear that the best classic car investment is a classic motorcycle for the best possible future returns. If you’re interested in acquiring an investment grade example of any classic motorcycle, contact The Motorcycle Broker.??