Cycle News is a weekly magazine that covers all aspects of motorcycling including Supercross, Motocross and MotoGP as well as new motorcycles
Issue link: https://magazine.cyclenews.com/i/1491247
VOLUME ISSUE JANUARY , P123 at Iconic Motorbikes in Santa Monica and there was a brand new, uncrated RC sitting there that had just been sold for… wait for it… $265,000. That repre- sents a staggering 165 percent increase in value in just eight years, far outstripping even most real estate, even though that too has seen some incred - ible value hikes in recent years. And, a family friend used to own an original Matchless G50 that had a purchase price of $8000 in the late 1980s. He would end up selling it for $60,000 about 30 years later, making for a pretty serious return on investment (ROI). Motorcycles have always been investments of some sort, whether it be financial or per - sonal, but as much as we love them, they should be consid- ered in a separate class when compared to traditional forms of investing like stocks and real estate. "If you're just looking at the ROI, there are better ways to park your money," says Iconic Motorbikes' Abhi Eswarappa, frankly. "But very few invest - ments are as fun as motor- cycles, and it's amazing that someone can snap up a Honda RC30, enjoy it for several years, and put a few miles on it while knowing that the bike is gaining value at the same time. "The demand in the market has been surprisingly strong and has remained so," Eswarappa continues. "During the pandem - ic, consumers stopped traveling and had extra money to spend on motorcycles, cars, watches, you name it. The bike market was one of many that got much stronger during Covid. I suspect it will soften slightly soon, but my partner Adam Tromp and I both are frequently stunned by the demand we're seeing for our favorite motorbikes out there. With that said, we don't push motorcycles as an investment vehicle, and have frequently recommended clients against purchasing with that in mind. We just want more people out there riding." The collectable scene is in a transition for the average punter, as the bikes I loved as a kid are now the bikes people are start - ing to pay attention to. "There are bikes like the first year Hayabusa, first year R1, or a ZX-7RR N1 that have already started to dramatically increase in value but I believe they have plenty of room to grow in the next few years," says Eswarap- pa. If you're really trying to maximize your investment, you'll need to look a bit further in the future (and you'll have to hold on a bit until the values go up). Possible contenders in that situ- ation would be the 2005 Suzuki GSX-R1000, 2009 Ducati 1098 R Bayliss, 2009 Harley-Davidson XR1200 (ideally with the race kit), 2010 BMW S 1000 RR, 2014 BMW R nineT, 2015 Kawasaki Ninja H2 and H2 R, 2015 Ya - maha R1M, 2015 Aprilia Tuono V4 1100 Factory (I have a soft spot for the 2017 livery with a touch of green), 2017 BMW HP Race, and if you've got the cash: a 2015 Honda RC213V-S." That list is admittedly sport - bike-heavy, however, it's the complete opposite end of the collector spectrum that's gain- ing the really significant dollars. The recently held Mecum auction in Las Vegas broke the record for the highest price sold for a motorcycle with a 1908 Harley-Davidson 'Strap Tank' selling for a whopping $935,000, eclipsing the 1951 Vincent Black Lightning, which sold for $929,000 at the 2018 auction to an investor in Australia. In the end, I guess your motorcycle investment vehicle of choice comes down to two things: what you like and how much cash you've got. I'd love to have enough cash to buy a 'Strap Tank' but it's also not the type of bike I'm into, which, if looking at it purely from a financial perspective, is good because there's zero emotion in it for me. What I'd want is Britten, as I'm sure you would, too. And given the current rate of change, I bet it wouldn't be long before one of the 10 made Brittens sells for the magic $1 million mark. In that sense, yes, bikes are a good investment choice, but in most cases, as Abhi says, classic bikes are best to be enjoyed for a bit and moved on, hopefully for a nice little profit. CN