Hit the open road on an investment that really sets pulses racing
EVEN those not born to be wild can enjoy the fullthrottle thrills of making a shrewd investment in a motorbike. Values of some of the most sought-after classic bikes have risen more than 300 per cent since 2010, according to website The Motorcycle Broker.
This explosion of interest is fuelled by a rise in nostalgia from bike fans who are keen to buy a piece of history linked to their youth, often investing in bikes from the 1970s to the 1990s.
Iconic models of this era from makers such as Ducati, Honda, Kawasaki and Yamaha have recently been grabbing investor attention. For example, a Ducati 916 from the 1990s costing £5,000 six years ago now sells for up to £25,000.
Primary school teacher Bridie Giraud, 49, from Totnes in Devon, believes it is the sense of freedom and connection with nature that riding a classic motorbike offers that is the major attraction.
Investment returns, she says, are a bonus. She owns a 1980 Yamaha XS1100 bought 18 months ago for £7,000 but now worth £10,000.
Bridie says: ‘I love my motorbike. It is a joy to ride such a classic and I can ride all day long without feeling uncomfortable. It makes me feel both young and free.’
She adds: ‘The beauty of such classic bikes is that they are also relatively reliable. I budget £300 a year to keep it on the road. Usually it is just new tyres or a battery that needs replacing.’
Bridie also budgets a further £200 a year for insurance as the bike is so valuable. Comprehensive cover is vital as replacement parts are hard to come by and any accidents could have a huge impact on the investment value of a bike.
Bridie is a mem- ber of The Vintage Japanese Motorcycle Club which offers her invaluable advice and details of qualified bike specialists if she needs them. Membership costs £25 a year while her bike is insured through company Carole Nash. As a club member she gets a ten per cent discount on her bike premiums. As with any insurance it is important to compare deals before signing up to a particular insurer. But you will usually get a discount as a bike club member. Visit arn1e.co.uk for details of hundreds of bike clubs.
Bridie garages her bike every night to keep it in top condition while the security provided by being kept in a locked garage helps keep her insurance premiums down.
Although she loves riding the bike, she always keeps an eye on its investment value. An extra appeal of motorbikes for enthusiasts like Bridie is that they are deemed ‘wasting assets’ by Revenue & Customs. This means there is no capital gains tax to pay if a classic bike rises in value. Paul Jayson, who runs The Motorcycle Broker, warns against buying investment grade bikes over the internet or via a private sale, especially if you are a first-time collector. He says it is best to buy through a specialist dealership, even if it costs you more.
Such dealerships will inspect a bike to ensure all parts are authentic and that the condition is as good as claimed. This will cost about £250. Any supporting documentation to verify a bike’s authenticity and previous mechanical work also adds to its value.
Jayson says: ‘For many people who grew up in the 1970s and 1980s the first bike they rode was a 50cc Yamaha FS1E – known as a “Fizzy”.
‘All youngsters needed was a provisional driving licence and £200 to buy the freedom the bike brought. Today, one of these fun starter bikes in pristine condition can sell for £5,000.’
He adds: ‘Many riders progressed on to proper bikes and these now hold the greatest allure for investors. Among the most sought-after is the Ducati 916 or 996.
‘Today, condition and authenticity is key. It is only pristine versions, preferably with original parts, that are worth a lot.’
British models from the 1930s to the 1960s, including Triumph, Norton and BSA, still have a diehard appeal among motorcycling enthusiasts and can sell for five-figure sums.
For example, a 1949 Norton 500T can fetch £15,000; a 1957 BSA A10 £10,000; while a 1960 Triumph T120 Bonneville £20,000.
British makes such as Brough, Velocette and Vincent often have an appealing pedigree. A 1935 Velocette MSS can sell for £15,000 while a 1954 Egli Vincent can command a price of £50,000. An original Brough discovered collecting dust in the garage
could fetch more than £100,000.