TOTNES, England, Oct. 16, 2020 /PRNewswire/ -- Classic motorcycle investment is profitable, fun and subject to one's domicile of residence, is legitimately tax-free.
A drive through the residential streets in any town at the weekend will reveal open garages as families mow lawns and undertake house maintenance. A surprising number of these garages will also contain a motorcycle. Some owners are already two wheel aficionados, some rely on a bike for cheap transport, and others will very often have an older machine tucked, unrestored under a tarpaulin in the corner. Even now, relatively few of these owners are aware of the surge in classic bike prices, and often sell them on without realising how the market has changed.
Tax Free Investment Returns
Classic motorcycles are great fun to own and great value. Even today, there are still unique machines out there, stuck in the back of a garage. Like investing in art, classic cars and wine, all profits are 100% tax-free if part of a private collection. A tax efficient form of inheritance that can also provide tax breaks for smaller company owners.
The other big advantage is the fact that there is no left or right hand drive, which gives sellers full access to the global market.
However, the prices of classic Japanese and Italian machines from this era are about ten years behind those of classic cars, a fact that hasn't gone unnoticed by classic car investors and dealers.
There are also two further factors driving the classic motorcycle market from this era towards a massive price explosion. The first is to do with demographics.
Throughout the 1970s, until motorcycling became more difficult to access with a two-part test, new motorcycle sales in the UK were at 270,000-300,000 a year. The numbers bottomed out at 53,000 new bikes a year in 1993. Sales picked up substantially in 1996 due to the grey market reducing the cost of a new bike, but the dizzy heights of new motorcycle sales of the 1970s and early 1980s have never been reached again. So these baby boomers who grew up in the 1970's motorcycling culture riding 50cc Yamaha Fizzie sports mopeds are now affluent mature adults, many of whom wish to reconnect with those halcyon days.
The second factor is of course China, the largest motorcycle market on the planet, which has now opened its borders to classic motorcycles for the first time. This will have a profound effect on the market, as most of the population in China either rode a bicycle or cheap motorcycle / moped for everyday transport. Over the next ten years, millions of new investors in China will drive classic bike prices higher.
Investing Into Classic MotorCycles - Interview
Investor relations and PR guru Alan Green also happens to be a lifelong motorcycle and classic bike enthusiast.
In a recently recorded interview, Alan and Paul Jayson, better known as The MotorCycle Broker take a look at the substantial tax free returns on offer from certain classic motorcycles, and run through some examples, including a Kawasaki Z1 900, an Allen Millyard special Kawasaki 1000, and an MV Agusta 750s.
Alan and Paul also look at the rapidly appreciating six cylinder Honda CBX 1000, after which Paul looks at three rare Ducati motorcycles that have provided spectacular investment returns - the Ducati 750 Sport Z Stripe, the green frame Ducati 750SS and the Carl Fogarty World Superbike winning Ducati 916.
The episode finishes with Paul providing some takeaway points for investors to consider when purchasing a classic motorcycle.