Brexit and classics
With the tumultuous decision of 52% of us in the EU Referendum to leave the European Union, we thought that we’d ask an expert about the state of the classic marketplace post-brexit. Paul Jayson of The Motorcycle Broker has been in the motorcycle industry since the Eighties and has some ideas as to how things are panning out. He says: “It is early days but one familiar pattern is emerging. I have been in the industry since 1988, so when interest rates went rocketing and property crashed, I started exporting to mainland Europe in those pre-internet days. What has been happening since June 24 is that I have sold a lot of really, super-clean, original and unrestored machines. There is also a high demand for high-end classic motorcycles, such as Brough, Indian, MV Agusta and Vincent. Decent sand-cast Honda CB750S are £30,000+ and CBXS have properly hit £15,000+ now. Why? When currencies are devalued investors run to tangible assets. Smart investors understand that more currency will be printed which devalues their cash reserves. So a tangible asset, such as classic motorcycles, classic cars, art, gold and silver are in limited suppl T ere man can’t print any more of them.” Paul says that only ready-forinvestment machines are doing well. Those that are not restored or not good condition and original are not fairing so well. “Or if they are,” he adds, “they are very inexpensive. I haven’t seen a motorcycle actually sell or reach its reserve on ebay for many months. ebay was a bloodbath for investment-grade classic motorcycles, but until the last few months old crap that needs a fortune spending on it has sold on ebay for more than an immaculate classic motorcycle needing nothing doing to it. “Investors do not scour ebay for their classics and I have not bought a classic motorcycle from their in five years, and for good reason: it’s where people sell their old crap, or lovingly disguised old crap. This is just my, and many other professionals’, opinion and has been learnt by bitter and costly experience.” We’d agree with that. For many of us who can’t afford the core older classics fetching daft sums, ebay remains a useful place to buy and sell and the prices of relatively inexpensive (£1000£6000) modern classics have been creeping up. Playing the investment game isn’t the of erich:wecnall least) off of a good investment bike. So what’s happening at the top-end of the market, post-brexit vote? “I am being contacted by foreign buyers seeking investment-grade classic motorcycles only,” explains Paul. “They don’t want anything requiring work. The UK investors I know with such motorcycles are not interested in selling and are happier to hold on to their machines, as they would rather hold on to such assets rather than swap them for cash, which is being devalued. They bought these machines as a five to ten year investment and they are being held in very strong hands.” With the modern world being better connected than ever with the internet, the market for such machines is bigger than it’s ever been, with people communicating, buying and selling from sometimes thousands of miles away from each other. Paul adds: “The weakness of the pound is also pushing prices up as most investment grade classic motorcycles are imported. The weak pound has forced up prices and customers are willing to pay extra to acquire the investment classic they want. Expect classic motorcycle prices to harden up even m the years to come.”