According to recent reports, between 500,000 and 600,000 new motorcycles are bought each year in the United States. Used bikes are just as popular. After all, they’re generally less expensive than new ones, so they’re more affordable for people who want to own a motorcycle but don’t quite have the budget for a new model.
Of course, for some people, buying a bike from a dealership like American Motorcycle Trading Company isn’t just about riding; it’s an investment. In those cases, classic and vintage motorcycles are often the best choices. Those bikes make great investments for several reasons.
Appreciation
Most vehicles depreciate over time, and motorcycles are no exception. That being said, some classic and vintage models stray from the norm. They actually gain value as they age. That’s especially true of rare and particularly iconic models. Harley-Davidson’s 1936-1947 Knuckleheads, the 1970 Ducati 750SS, Kawasaki Z1s from ’72 to ’75, and 1959 through 1970 Triumph Bonnevilles are a few prime examples. Some specific bikes from the 1980s and ’90s are quite valuable as well. Those that have been well taken care of or properly restored tend to be more valuable than those that are on their last leg, but some bring unbelievable returns as is.
Rarity
Another reason classic and vintage motorcycles make lucrative investments is their rarity. Much like modern models right now, they were a dime a dozen in their day. Over time, though, many of them have disappeared. Some crashed while others simply reached the end of their lives. Either way, they’ve made their way to junk yards where they’ll never be seen again. That means the few that are still out there are more valuable, and the fewer there are, the more valuable they’re bound to be.
Nostalgia and Sentimental Value
Sentimental value and the nostalgia behind classic and vintage motorcycles make them a great investment as well. They can represent numerous aspects, including important points in automotive history, key moments in motorcycle racing, and different periods of pop culture to name a few. There are even models out there that people associate with specific movies, celebrities, and other iconic elements. For some people, a certain model may simply remind them of their teenage years.
Either way, because of these factors, there’s a diverse market for classic and vintage bikes, and it’s not limited to motorcycle enthusiasts. There’s a good chance it won’t be overly difficult to find a buyer, and people are willing to pay a premium for them. If you happen to own the right model, you’re bound to turn a profit on it.
Tax Incentives
In addition to those factors, it’s important to mention the potential tax benefits of investing in classic and vintage motorcycles. Older motorcycles, even exceptionally valuable ones, may be exempt from capital gains taxes when you sell them. That means you’ll be able to keep more of the profit for yourself. That’s not the case with certain other investments, like gold, stocks, and cryptocurrency. If you buy one from abroad or sell it to a buyer in another country, you may not have to pay quite as much in import taxes, either.
Investing in Classic and Vintage Motorcycles
If you’re looking for an exciting investment opportunity, classic and vintage motorcycles are a fantastic choice. Whether you’re a bike enthusiast, a profit-driven investor, or both, certain motorcycle models are known to not only hold their worth but gain value over time. They have rarity, nostalgia, and sentimental value as well as purely practical benefits, and there’s an ever-growing market for them. Of course, if you find one to invest in, you may end up not wanting to let it go.
