LIGHTNING GOES UP LIKE A FLASH
Anyone lucky enough to have a bit of extra cash and looking for a secure investment might consider the obvious options – a work of contemporary art, some fine wine, pop memorabilia, ceramics, even original Star Wars toys.
For most petrolheads, the prices of classic cars, which have sky-rocketed recently, now put many out of reach. Take the Porsche 911, for example, originally launched in 1963 and every edition of which has subsequently gone up in value. Last year, a 1997 911 GT1 Evolution sold for £2.4million.
According to the Knight Frank Luxury Investment Index, classic cars have achieved almost 500% returns over the past 10 years, outperforming art and wine by more than 100%. So what about motorcycles? A study by Bonhams Auction House, of London, for GoCompare Motorbike Insurance, found bikes are potentially a very worthwhile investment, with some excellent returns.
A classic motorcycle is considered a ‘wasting asset’ by HMRC, which means there is no capital gains tax to pay on any profit.
And, of course, a bike is physically tangible and has that all-important emotional connection for many of us. So, what should you go for?
Budget is probably the biggest consideration, but the trick is to buy something now which is going to become more desirable as time goes on. Of course, if money was no object…
A record for the highest price ever paid for a motorbike was set in January of this year when a 1951 Vincent Black Lightning sold at auction in Las Vegas for £657,652.
That’s an appreciation of a huge 4,475% on its original value, adjusting for inflation.
Number two on the most valuable list is a Brough Superior 800cc BS4 Project, which sold for £331,900 – an increase of 2,666%.
At the slightly more affordable end of the scale, Bonhams looked at a 1975 Triumph Trident 750, with just seven miles on the clock, valued at £13,800 – an appreciation of 98%.
Or how about a 1976 Benelli 750 CM3, worth £14,650, an increase of 52%? Ben Walker, of Bonhams, said: “It is fascinating to see how the values have increased since the machines were new.
“Knowing what we know now, it would be great to step back in time and buy them when new…” It certainly would. In the meantime, I’ll keep dreaming of the day I stumble across that old barn, wander inside and throw off a dusty tarpaulin to reveal an immaculate neverridden Vincent Black Shadow… and then discover the owner would love me to get it out of their sight.
To see the full list, visit gocompare.com/ motorbike-insurance