Motorbike Collection

[Vito]

Hi folks

I am currently a freelance consultant largely working alone with the occasional opportunistic sub-contracting. I am in the process of recruiting some perm staff as I now want to grow the business into something more sustainable.

I am also keen to build some asset value in the company and would like to consider building a collection of 'future classic' motorbikes...in the way some companies invest in land and property.

My theory is that as a motorcycle enthusiast this would represent a fun and tangible way of saving...it carries some risk of course, but so does all investment offering attractive returns.

What are the downsides of this through the company?

Has anyone else done anything similar?

Thanks in advance

[TykeMerc]

I suppose the main downsides are:-

1. Justifying to HMRC that the collection is a business interest (should they come asking) which should be rational to overcome
2. The collection will be a company asset and not yours so will need more specialist insurance, storage and if they were to be used in any way I don't know how that would be treated, Benefit in Kind?
3. If sold the profits are company profits and not yours
4. If you close the company then the collection would have to be sold for a fair price as company assets

[Dearnla]

Just pay yourself by dividend and buy your own.
Try:-
Suzuki gt380 gt triple . . . very original un-restored on eBay (end time 20-Jan-11 11:13:38 GMT)
or:-
SUZUKI GT 750 on eBay (end time 24-Jan-11 10:05:23 GMT)
Or:-
SUZUKI GT250 X7 1980 on eBay (end time 28-Jan-11 18:28:02 GMT)

2 - geddit?

[TestMangler]

I thought the point was that they were 'future classics'.

The three you mention could really be considered classics currently and therefore, overpriced.

[Fred Bloggs]

I thought the point was that they were 'future classics'.

The three you mention could really be considered classics currently and therefore, overpriced.

You're falling into the trap of thinking "old" = "classic". Of those three, two of them were total POS bikes even when new and age will not have been kind to them. GT750, fair enough. Not a great bike but quirky enough to be a "classic". The problem is, just which bikes will be true future classics? I have a 1990 Buell RS1200, one of only a few made and completely original. A classic? Possibly. Value? Almost worthless (cost new in 1990, £13995!). A good prospective future purchase now that Buell are gone? Maybe.

[Dearnla]

The trick is picking a point at which to buy.
For example, a '98 R1 in original condition is definitely going to be worth collecting, but you're already looking at £2-3k for one now. Maybe its predecessor, the FZR1000EXUP should be considered, but £1k will still only buy a POS but £2k should get you a minter. Is that worth it?
If you want something cheap, what about an RF900 or GSX600F? Hardly classics....

[xchaotic]

I guess that's the idea of growing a collection - you make some bets/gambles as to which ones are going to be worth much and as with any other item you buy when they're low and sell high.
Currently 'cafe racers' are all the rage again and as such are peaking in value, and I would say they're not that old.
I think there's definitely going to be some sentiment for late 80s/early 90s unrestricted racing monsters that had no ABS, hardly any electronics but already crazy performance.
When you look at the specs the 2011 models of R1 etc are barely faster than '98 model, and probably what they shaved with carbon, they replaced with a GPS unit or some other electronic gizmo.
SO yeah, I'd say go for it, but buy it with your private money or maybe set up a separate business in the right category of auto trading.

[Fred Bloggs]

Originality is everything. You have to be completely anal about it, but that's where the money is longer term IMO. You're right the earliest models that were seen as "mould breakers" in their time are the ones to go for. Looking back it's the early Z1's that are worth the money now when totally original, and later Z900's, Z1000's are nowhere near as desirable for example. Follow that line of thinking and yes, a totally original and unmolested very early R1 is probably worth buying (if you can find one).

[xchaotic]

One bloody thread and I'm wasting my afternoon on ebay scouting for a for some classics...

Now, which was the first Kawasaki to feature that green-in-your face paint?

[Fred Bloggs]

One bloody thread and I'm wasting my afternoon on ebay scouting for a for some classics...

Now, which was the first Kawasaki to feature that green-in-your face paint?

My money would be on H1R race bike followed by H2R race bike followed by KT250 trials bike. Just a guess though, for pure road bike, I don't know.