You can drive into profit as number plate prices boom
...but it’ll cost you MILLIONS if you want to show you are No 1
THERE has been a surge in demand for personalised car number plates during the pandemic – turning many of them into shrewd investments. The increase in sales has helped the value of the most sought-after plates rise in price, creating a multimillion pound industry where they can change hands for anything from £150 to £200,000 – or more.
Russell Palmer is a director at plate trader CarReg. He says: ‘With so many people forced to work from home, there has been a boom in business – with people discovering that personalised number plates can prove shrewd investments. Thanks to regular online auctions and sales, there is no need for buyers to step out their front door.’
Interest is fuelled by many people wishing to personalise cars with a registration plate that means something special to them – with letters and numbers that look like they spell out a name or cherished word. Those plates rising most in value include fore names that have attracted a growing popularity.
Jack is a Christian name that has been popular among new parents in recent years. A registration plate ‘JAC 1K’ that sold for £8,700 in 2008 could now sell for as much as £50,000, according to Palmer.
Registration plate ‘MEG 4N’ went for £12,500 in 2003. But following the marriage of Meghan Markle to Prince Harry, it has since been valued at £45,000.
Another winner is the plate ‘ BOR 15 N’ that was snapped up for £650 in 2013 but sold last year for £2,000 – after Boris Johnson became Prime Minister.
A key attraction is that a plate can stay with an owner forever – and be transferred to any new car driven. The transfer fee is £80 and can be done online using the Driver & Vehicle Licensing Agency (DVLA) website.
If a plate is not going to be put on to a car, a buyer must fill in aV 750 certificate of entitlement or aV 778 certificate of retention. They pay £80 – and another £80 if the plate has still not been used after ten years. Failure to properly register the car number means a registration plate can fall back into DVLA ownership.
Plates go back to 1904 when it was first required to have a vehicle registered. Early registration plates before 1963 – after which date recognition letters at the end of plates came in – are most sought after. These so-called ‘cherished’ plates come with a combination of up to three letters and four numbers. Low combinations are the most valuable.
Such examples can sell for £100,000 or even more. Palmer owns car registration plate number ‘1 RP’ that he inherited from his late father who shared the same initials. The plate was bought for £10,500 in 1995 and is now valued in excess of £150,000. He says: ‘ It can be particularly appealing if you have a name such as mine that has been passed down through the family – as it means something special.’
Between 1963 and 1983, plates had age letter identifiers at their end. This was switched in 1983 to be at the front of the plate and this practice continued until 2001.
Since then, the third and fourth digits on a plate have been used to identify the year of a car’s registration – changing every six months.
In March, it becomes ‘21’ and then in September ‘71’ – 21 plus 50.
A ‘21’ plate can be reserved via the DVLA at gov.uk/personalisedvehicle-registration-numbers.
Novelty entertainment value is another reason people might snap up a plate – though the DVLA is wary of combinations that can be turned into swear words, cause offence or have sexual connotations. The agency has even banned the use of plates that refer to coronavirus. So, for example, ‘COV 1D’ has been withdrawn. A risqué ‘80 OBS’ slipped through the censor net and was snapped up for £10,000 in 2004. Today, it might fetch £20,000.
The DVLA started selling private plates in 1989. Next year, it will run at least seven sales auctions in conjunction with car auctioneer BCA. For details, visit dvlaauction.co.uk.
An alternative to trawling through the DVLA database or taking part in an auction is to go to a specialist trader such as CarReg, Cherished Numbers or National Numbers.
These companies specialise in trading personalised plates, so should be able to help find what you want. Buyers can expect to pay a 10 per cent premium.
Crooks also operate in the market. They not only sell phoney plates but tamper with existing plates to make letter and number combinations look more appealing with altered sizes. This includes using unauthorised fonts and plate screw fittings. The laws on licence plate spacing and sizes are strict and if a registration plate is breaking the rules, the driver may face a £1,000 fine. Buyers and sellers should only deal with a reputable trader who is signed up to either The Institute of Registration Agents & Dealers ( MIRAD) or the Cherished Numbers Dealers Association ( CNDA). These have codes of conduct aimed at weeding out rogues. Damian Lawson, a manager at the DVLA, says: ‘The easiest way to buy or assign a personalised regi stration i s to use our online service. There are mo r e than 5 0 mi l l i o n variations available on our website – so hopefully an endless combination to suit any person’s taste or budget.’ toby.walne@mailonsunday.co.uk