Over the past 25 years or so, private number plates have proven to be a very good investment. Part of the reason is that during the late eighties as well as the early nineties our disposable income has encouraged us to spend on extravagances that we would not normally have bought. Bigger and more expensive cars, holidays abroad and even personalized number plates. Another reason is that the prices of such personalized registration numbers have grown to such an extent that they are now considered investments.
When the DVLA started selling number plates way back in the early nineteen nineties, number plates such as 4 A and 11 B were sold for £6800 and £4000 respectively, however they are for sale today for £120,000 and £95,000. The ground breaking record of the most expensive number plate ever sold in history worth £10m today. Property prices or gold has not increased in value quite so much, so it’s clear to see why the trade in private plates has grown to such a level.
The best type of plates for investment reasons has to be individual plates. Whilst all plates are classed as individual, the types of plates referred to are ones that spell names or words and also the number plates that have the single number 1.
Number 1 plates are considered the ultimate car registration in more formal circles. Number 1 is considered to be the best and therefore they attract the highest retail prices. In fact the difference in price between number 1 and number 2 can be as much as four to ten times depending on the initials.
Names are also very unique as if they spell a word perfectly without any misrepresentation, they can sell for significant prices. Some of the most expensive registration plates sold at DVLA auction have been nameplates. DAV 1D sold for £50,000 back in 1991, G1 LLY made £70,000 in March the year before and APR 1L sold for £46,000. For investment purposes, car registrations that include names are always one of the soundest purchases.
If you are thinking of buying private number plate to invest and make a profit you must simply find out what is on sale as direct competition to the plate you are selling. If you are new to the game, then you probably won’t be VAT registered which is a big bonus when fighting for a sale as most buyers are unable to reclaim any VAT that is paid unless they are buying for a company or a business. Always make sure you have a contingency in the price as almost every sale will result in some negotiation and therefore if this is not factored into the price you will be haggling away your profit. It’s worth also noting that the first offer is sometimes the best offer.