Classic market booms
Added on Thursday, December 3rd, 2009 by Carole Nash Editor | No Comments
Classic market booms
Classic bike sales are booming in a generally depressed two-wheeler market, reports Alastair Walker. The 100% sold stickers on the Neutkens BMW collection recently auctioned by Bonhams, also highlights the likely direction of the motorcycle market in Western Europe for the next few years.
Whilst new motorcycle sales continue to show declines of 20-30% in the UK, Germany, Italy and many other European markets, demand for classic motorcycles continues to grow, dramatically increasing the values of many older motorcycles during 2009.
An audience of over 1,000, with 320 registered bidders, attended the Bonhams sale held at the BMW Museum in Munich, Germany. Some 94 Lots were sold for around 1.3 million euros, with most being BMW machines collected by Willy Neutkens, the founder of the Motoport BMW dealerships.
A 1924 BMW R32 made an astonishing 109,250 euros, against a pre-sale estimate of 45,000 euros and many other bikes went for far more than their catalogue estimate. The same rise in values is being reported by dealers and auctioneers who specialise in classic motorcycles, both road and racing, right across the spectrum of European and Japanese makes.
WHY IS THE MARKET BOOMING?
Dealers like Bill Smith of Cheshire, who has owned many historic racing motorcycles over the last 45 years has no doubt about the two main reasons that classic bikes are in big demand;
“Firstly, anyone with money isn’t leaving it in the bank. Interest rates are pathetic and half the banks could still go bust, so wealthy individuals,` art collectors’ basically, are buying classic bikes to store as a solid asset. We know one guy who has race bikes stored in his house, he has no intention of ever riding them – they are like oil paintings on the wall.”
But Bill also sees older riders fuelling the future demand for older models which can hold their resale value far better than a new bike.
” We are seeing a good demand for modern classics too, most buyers now are aged 50-plus and they often collect several examples of one particular make or model. Older guys have made their money and they want to have fun on something that will hold its value long term.”
Kawasaki spares and restoration specialist Rick Brett agrees;
“Values on KH750s and KH400s seem especially strong this year, ” says the man who owns a large collection of the famous two stroke triples from the 70s, ” at one time you could pick up a nice KH400 for 1500-1700 quid, but really tasty ones are fetching £2500-£3000 and the early 750 H2 models can go for as much as £14K now. I can see values rising further, as bikers in their 50s, who grew up with the Japanese bikes of the 60s and 70s start collecting them as an alternative pension plan.”
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