Demand for classic race cars foreshadows demand for motorcycles as the value of racing machinery is spotted by investors. As we work with some very high value classic cars off-market, we have really noticed a shift in the market. Investors are now hunting down classic racing cars with history, as they offer great value and plenty of headroom. I have been writing about the value offered by classic racing motorcycles since 2019 here. These machines are seriously undervalued and waiting to follow the lead of the classic car market.
Middle East demand
There is a lot of Middle East demand and also some demand from young tech business owners. I have recently written about the demand from these new buyers who are involved in the tech industry here. Blockchain is drawing them into the collectibles market rather than buying machines from dealers. There has always been a healthy classic car and motorcycle trade in the Middle East too, but now there is a lot of focus on racing machines with provenance. This could be due to the tax advantages of using historic machines to advertise companies, but it appears to be because these investors are spotting the value in racing cars and racing motorcycles.
Top end of the market is very lively
The top end of the market is very lively with classic cars and classic motorcycles offering a great safe haven. Covid, Brexit and other such instabilities are making the stock market and even property feel really quite unpredictable. Tangible assets have performed well not only in the good times, but also in times of great instability. Bonds, shares and fiat currency can all be diluted simply by issuing more. However, the number of Ferrari GTOs, 250 Europas, MV Agusta 750 Sports and Ducati green frames are limited and will never increase. Even if they were to be 3D printed into perfect replicas, they don’t have the correct engine or chassis numbers.
The classic motorcycle market always follows the classic car market
The classic motorcycle market always follows the classic car market, as prices have clearly demonstrated. Although motorcycle prices still have a long way to go to catch up car prices, in spite of the steep price increases over the last ten years. As such, over the last ten years classic car investors have started investing in classic motorcycles, because of the great value they offer. It is easy to see which classic motorcycle compares to which classic car, the parallels are clear. The trends in the classic car market always arrive in the classic motorcycle market fairly promptly.
Now is the time to buy classic racing machines
Now is the time to buy classic racing machines as there is a lot of money chasing very few machines. Only ones with a provable history and provenance are of interest. Cars or motorcycles with a rumour of being raced by someone famous are not of interest, as it can’t be proved. Championship winning cars and motorcycles are high up on the agenda. If you want to invest in classic racing motorcycles, call The Motorcycle Broker.