Number Plate Investment
The following information should not be taken or construed as financial or specific investment advice.
If the enjoyment you get from owning and displaying a personalised number plate on your vehicle ever subsides, you may one day become curious about what you might get were you to sell it.
The good news is that, for most plates, you'll probably find you're able to return a profit on your purchase.
This may get you thinking - is investing in number plates a good idea? The answer is a resounding 'yes'. Certain registrations have proven to be very sound investments, and a simple 'buy and hold' strategy can produce a significant return.
The demand for personalised registrations shows no signs of slowing down. The following chart shows how much money the DVLA have taken from the sale of cherished registrations going back to 2011. Every year has seen growth (even through tough recession years), and in the space of 10 years their portion of the market has more than tripled in value for them from around £85 million to over £300 million.
Personalised plates are as popular as ever, and they're bringing in a lot of money to the Government coffers.
Data supplied by https://www.gov.uk
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As any good investor would, you'll want to perform some due diligence before investing your cash. There are a number of questions most investors need to answer before putting their money into anything.
Investment Top Tips
The best time to buy a reg is when it's first released
You'll never get a registration for less than the price it sells for when it's first released. Every time it changes hands, the newest owner will add a markup - nobody wants to sell for a loss! - so the asking price of the registration will always creep up.
Dateless registrations have proven to bring the best returns
Whilst other plate formats are capable of bringing in a positive return, the biggest gains are to be had with dateless reg.
Buy for an audience
You may find a registration like LXZ 2653 available for a mere £50 - but think about who may want to buy that in future. The registration doesn't visibly spell anything, LXZ aren't initials you'll find many people sharing, and the number 2653 isn't a great match for a vehicle make/model or an important date or similar (perhaps 2nd June 1953?).
So who will you be able to sell this to? Perhaps if you have a series of LXZ plates with sequential numbers you may appeal to someone who has several vehicles, but otherwise you're, at best, looking at breaking even when selling this down the line.
Compare this to a registration like JS 95 which has an awful lot more potential. JS are amongst the most popular initials in the UK, the 95 is a nice number that could easily represent a date/year of birth, or relate to something else significant. The reg is also very short and distinctive compared to current standard reg. The potential appeal is far greater, so it should be easier to find a buyer.