What I Learned Collecting (and Investing in) Vintage Motorcycles: A Beginner's Guide

For most people, just affording one motorcycle is a luxury. However, for some, being able to have a street bike and a vintage/collector's bike is a possibility. This is a story about how you can buy a motorcycle to love for a few years and then resell it for more than you paid. (OK, maybe for what you originally paid.)

Over the years, I have skipped the week at a warm weather “all inclusive” resort and put my "holiday" money into another collectable motorcycle. I am far from being rich. But I've been able to buy, enjoy and resell a few bikes over the years. Some of them have been enjoyable to own/ride and when I sold them, they made me a few bucks. It wasn’t part of some investment portfolio but it did turn out to be a nice way to have fun and make a buck.

Is this something anyone can do?

The Norton Manx & Vincent Rapide

Many years ago, I was offered a Norton Manx road racer for $7000. That bike is now worth $40,000. Sadly, I didn’t buy that bike. Five years ago, I was offered a Vincent Rapid 1000cc vintage street bike for $23,000. It would now sell for $45,000. I didn’t buy it.

I didn’t have a spare 23 grand but if I did, I likely wouldn’t have gambled it on a vintage motorcycle. Instead, I would have made 1.5% in a GIC investment fund offered by my bank.

GIC fun factor is zero. Riding a Vincent to a bike night, priceless.

Bimota DB1

I had an opportunity a few years ago to buy a brilliant white Bimota DB1 with low miles and a soulful Ducati V twin motor. The owner only wanted to see it have a good home. All for the price of a nice used car. I passed and left my money in a low payout bank product.

See a pattern here?

I appreciate that buying an expensive motorcycle that doesn’t have an immediate ride to work use is not affordable for everyone. Sure there is the storage thing to consider and also what you tell your significant other who now thinks you are foolishly throwing money around.

The Auto-Bi Greyhound

In 1983, I bought a 1909 Auto-Bi Greyhound motorcycle from the estate of the original owner. The Auto-Bi Greyhound was an advanced single cylinder motorcycle that had been made in Buffalo New York. I sold it two years later after I needed to pay for a new bathroom. In it’s unrestored original condition, that bike now would bring between $60,000 and $75,000. The bike was sold to an American collector who drove non-stop from Iowa to buy it. The famous Henry Ford Collection in Michigan has one. Yes, I should have kept it. At the time, doubling my money sounded like a good idea.

So you might not stumble across a pre WWI motorcycle any time soon. But it doesn’t have to be a complete motorcycle. In the 1980s, you could buy an Italian-made road race motorcycle drum brake front wheel for around US$400. Today there are sellers on Ebay listing similar racing wheels (Fontana, Oldani, etc.) for over US$1,400. A thousand dollar profit.

Dellorto SSI

I visited a motorcycle shop in Philadelphia, PA in 2007 and found a brand new Italian made Dellorto SSI remote float racing carburetor sitting on a shelf. I shelled out US$350 and it came home with me. Today, it will bring somewhere between US$700 - $1000.

There are opportunities to invest in something that will appreciate. While there may be a few people who do this kind of buying and selling just to make money, most do not. I am an enthusiast. I am not in it for the money and I am not a ’motorcycle business’. But it is nice to know that I'm not throwing money away with my hobby.

Characteristics of a collectable motorcycle

Well now, what is the point to this story? I found my next “buy it now” motorcycle recently. One that has hit the bottom of the market and is poised to appreciate. Here's what to look for in a classic motorcycle to invest in:

1. A limited number of bikes made
2. A cult following already
3. The one you want has low mileage or even very low mileage
4. Look for high performance or racing machines; sorry but most ‘cruisers’ and ‘touring’ bikes are not going to be good investments. With the exception of many pre-1960 machines, most collectable motorcycles are performance or racing machines. Want an example? A 1977 Harley Davidson Sportster is worth $3,500-$4,500. A 1977 Harley Davidson XR750 dirt track competition bike is worth $20,000-$35,000. So concentrate on racing or sports motorcycles.
5. Similar machines are already showing up in collections
6. Something you like too!

Here are my pics for what to buy right now

Keeping a collectable motorcycle isn’t for everyone. Hell, it isn’t for hardly anyone. However, if you’re the exception, I have my suggestions for something to look for. I have three suggested motorcycles to buy right now. The asking prices for these motorcycles have already hit the bottom of the market and will begin to appreciate according to my official crystal ball.

Honda NSR400 - not a big seller for Honda when they came out. The similar era two stroke street bikes from Yamaha (RZ500) and Suzuki (RG500) have already become classics and are bringing over $10,000+

Honda RC51- the big V twin Superbike was raced successfully in the US, Canada and around the world in World Superbike. Honda didn’t do the “one of” numbered edition like Ducati. Just because Ducati called a bike “one of XXX” and put a little plaque on the triple clamp, it doesn’t make it that special in hind sight. The RC51 came with magnesium covers when few other companies risked using this material. The Nicky Hayden version seems like the best one now that Nicky is no longer with us.

Yamaha RD350LC- the first liquid cooled two stroke street bike from Yamaha. Fast, fun and reliable. Everyone who owned one loved them. Sadly, most owners modified the heck out of them and then raced them to death. Spend the extra for an all original version.