Private number plates, also known as personalised or private plates, have become increasingly popular among vehicle owners as a way to add a personal touch to their cars. However, many people have also started to see them as a potential investment opportunity, with some plates fetching eye-watering sums at auction.
In this article, we will explore whether private number plates can be a smart investment opportunity, and what factors people should consider when deciding whether to buy one for this purpose.
Potential returns
Firstly, let's consider the potential returns on investment for private number plates. While some plates have sold for astronomical prices, it's worth noting that even the more modest ones tend to appreciate in value significantly over time. In general, the most sought-after plates tend to be those with a short combination of letters or numbers, as well as plates that resemble popular names or words.
Heritage
Another important factor to consider when buying a private plate as an investment is its heritage. Early plates, known as ‘dateless’ since they bear no indication of their date of issue, are the most desirable and also have the added advantage that they can be assigned to any vehicle regardless of its age. A dateless plate is one which starts or ends with a number.
Those that may have an interesting provenance will also be more valuable to collectors.
Purchase cost
It's also important to consider the cost of purchasing a private plate. While some plates can be bought for a few hundred pounds, others can cost tens of thousands of pounds or more. It's crucial to consider the potential return on investment and the length of time it may take for a plate to appreciate in value enough to make it worth the initial cost.
One potential advantage of investing in a private plate is that it can be a relatively stable investment compared to other options like stocks or real estate. While the value of a plate may fluctuate over time, it's unlikely to suffer the same drastic drops as other investments during a market crash. However, it's worth noting that this stability also means that potential returns may be lower.
Purchasing a private registration gives you the right to keep it as an intangible asset or display it on a vehicle. In either case, unlike most other investments, there are no storage, maintenance or insurance costs
The enjoyment factor
Finally, it's worth considering the personal enjoyment factor when buying a private plate. While it may be tempting to buy a plate purely as an investment, it's important to remember that you will also be using it on your car. If the plate doesn't have any personal significance to you or doesn't make you happy every time you see it, it may not be worth the investment.
In conclusion, private number plates can be a smart investment opportunity for those who are willing to do their research and choose a plate that has the potential to increase in value over time. It's essential to consider the age and any historical significance of the plate. Ultimately, anyone considering investing in a private plate should weigh up the potential financial returns with their personal enjoyment of the plate before making a decision.
You can read more on our number plate investment page which includes examples that show how much the value of registrations can grow.
