Cars on Contract

No matter if private number plates make you laugh out loud or cause you to raise your eyebrows, there is no discounting how popular these have become in recent decades.  Interestingly enough, the concept has been around over 100 years dating back to the inception of the vehicle identification system.  They are now considered to be a very popular vehicle accessory.  Additionally, the private “number plates for sale” market has grown into a multi-million pound industry here in the UK.

It follows then that some individuals would view these as a viable investment since there are already some very valuable ones currently in existence.  Long before the UK government had a clue as to their popularity, many dealers were already engaged in the trading of these types of number plates.  Furthermore, individuals today are prepared to pay whatever they have to in order to purchase the private number plate of their choice. 

What is interesting is that since 1989, UK vehicle owners have spent well over £950 million on private number plates at auctions just to get the private registration plate of their choice.  The benefit of these sales is that the funds accumulated from these auctions go directly to the Treasury, therefore helping the British economy.

The primary reasons that people have become interested in private number plates, and investing in them, is the fact that market and value trends have become quite significant in recent years.  These trends have witnessed a very significant increase in the value of private number plates, hence the current popularity in this form of investment.

Although being sometimes regarded as an unusual description for private number plates or private registration plates, the terminology “cherished number plates” has come into usage to describe this specific kind of car registration plates.  From a collectible standpoint the cherished number plate has become a viable form of investment. Some motorists and dealers who wish to realise a profit on these whenever they sell or trade them to vehicle dealers or individuals are active in the market.

Ironically, certain letter or number combinations have literally become legendary as a result of their increased popularity.  So it stands to reason why they are seen as a very viable investment from a collector’s standpoint.  Individuals get extremely attached to their cherished number plates because of the fact that they are typically viewed as an expression of one’s lifestyle or personality.  Unfortunately, previously banned letter combinations or words (e.g. SEX) are now allowable, hence some people’s distaste for the practice.

People normally shop for cherished number plates that contain letters that represent their initials or numbers that relate to their date of birth; this is common with celebrities and the more extrovert type of car owner.  Some businesses also seek out index marks that reflect the name of the business.  Although the practice of obtaining personalised number plates is often viewed as just a hobby or possibly some type of profit making occupation, most individuals are very serious about their private number plates and do actually ‘cherish’ them.

Mark Humfrey found himself dreaming of the perfect personalised registration plate when H plates became available in 1990. He though the perfect plate to signify his surname would be H3 UMF as it could be read Humf-three, a play on Humfrey. However, at the time his car was too old, as government legislation does not allow the transfer licence plates to a vehicle that makes it appear younger than it actually is. In order to be able to display his dream plate he would have to purchase a brand new car, which he was not in a position to do.

As luck would have it, Humfrey looked up his perfect plate again in 2000 and it was still available. By that time he had a newer car on which to display the mark. He fondly remembers a family holiday when, by chance, he glanced at the BMW stopped beside him at the traffic lights and saw the plate H2 UMF. He tried to make eye contact with the other driver, but he was oblivious. He also missed an opportunity to take a photo of his registration sibling.

Humfrey has since purchased a BMW 525 with a great licence plate that he has not felt the need to change, M525 NKN. However, he has not given up his love of personalised plates and when he accidentally stumbled across E525 JOY he knew it would be perfect, as his wife’s name is Joy and her maiden name was Evans, so that plate was ideal in every way. In fact, Mark considers it fate.

Registration plates in Italy have changed many times over the past century. Back in 1903, the first plates bore the name of the vehicle’s city of origin followed by a number, but this system only survived until 1905.

From 1905-1927, registration plates were white with a numeric province code displayed in red. This code was suffixed by a progressive number, specific to that province, which was displayed in black.

Between 1927 and 1976 Italian registration plates were black with white digits and there was a difference between the dimensions of the front and rear plates. The format of the registration mark was a two-letter province code followed by a numerical progressive code of six digits or less, unique to that province. The order of the province code and progressive code changed between 1927 and 1932.

The system was altered again, between 1976 and 1985, where the front played followed the same system as before, but the rear plate was split into three sections. The first contained the progressive code, while the last two portions, which had orange letters on a black background, contained the province code.

In 1985 Italian number plates changed colour, when black digits on a white background were introduced. The front plates were also enlarged and the province code followed the progressive code as per the rear plates.

The most recent amendment was introduced in 1994, when the indication of a vehicle’s place of origin was removed. An alphanumeric system was implemented in its place, following the format of two letters, three digits and a two-letter suffix.

For many, acquiring their first private registration plate leads to many more purchases throughout their lives. This has certainly been the case for self-confessed number plate enthusiast, Ash Raine. In fact, Ash admits that he has been desperate to own his own personalised plate since he was just twelve years old. He remembers being impressed by some family friends who had them and decided that he too wanted the status that went along with displaying a personalised plate on his own car. He obviously had a few years to wait.

Ash finally received his first car, as an eighteenth birthday present and almost immediately was on the lookout for the ideal registration to transfer to his new set of wheels. He eventually settled on V88 AJR, as it combined the year he was born with his initials.

With his enthusiasm for number plates undiminished, Ash realised that he should be able to source a plate with his name on it. Over the course of the following years he spent a considerable amount of time searching for the most appropriate ‘ASH’ plate. What he discovered, however, was that ‘ASH’ plates were selling for thousands of pounds and he could not justify the price at that time.

Finally, he found his justification when he completed his degree in May 2009. As luck would have it, Ash found the plate, ASH 74R, the day he received his results. He is understandably delighted with his new private number plate, which is proudly displayed on his Vauxhall Corsa Sxi.

To qualify for the retention scheme, both the donor vehicle and the receiving vehicle must be available for authenticity inspection. Only testable vehicles are valid for participation in the scheme, which means that vehicles such as tractors and battery-operated vehicles, for example milk floats, cannot participate. A valid MOT certificate, if the vehicle is three or more years old, must be submitted along with the application for retention.

Vehicles must hold or be in the process of acquiring, a valid licence (tax disc). Applications may still be considered if the licence expired less than six months from the date of the application. However, this concession will not apply if the licence was surrendered voluntarily for a refund.

The retention document, V788, is only valid for a twelve-month period. If, during this period, the number plate is assigned to a vehicle then a replacement tax disc will be issued and the MOT certificate for the vehicle will be endorsed with the new registration mark. The DVLA will also issue new registration documents to the registered keeper detailing these changes. It is imperative that your insurer is immediately notified of the changes.

If you are planning to sell a vehicle with a private registration plate, which is subject to a retention application, it is necessary to await receipt of the documents confirming that the process is complete before you do so, otherwise you may lose entitlement to the mark.

Prefix registrations are easily recognisable by the single year identifying letter at the beginning of the plate, which is followed by one, two or three digits and three letters. An example of a typical prefix registration plate is T9 WTB.

Originally, the final three letters were used to identify where the registration was issued. In the case of this example, the WTB indicates that it originated from Liverpool.

The numbers in prefix registrations have no other purpose than to differentiate one registration plate from the hundreds of others with the same prefix and suffix letters.

The prefix on this type of registration plate is used to identify the year the vehicle was manufactured. With regards to the example registration, T9 WTB, the ‘T’ identifies the year of manufacture as 1999. An ‘A’ prefix identifies the year 1983, B identifies 1984 and so on. From 1999 onwards, there were two registrations released each year. The prefix letter format ended with the Y registration in 2001. There were no I, O or U prefix registrations, while the ‘Q’ prefix indicates that the age and origin of the vehicle is unknown.

Prefix number plates can only be applied to a vehicle of the same age or older and it is not possible to use a prefix registration to make your vehicle appear more recent than it is. Therefore, the example registration T9 WTB could be used on a vehicle manufactured in 1999 or later. It could not be applied to any vehicle manufactured prior to this date.

The market for personalised registration plates continues to grow worldwide and this is particularly true for those affluent members of society who are willing to pay extraordinary amounts of money to secure their dream plates. However, in addition to being mere status symbols, such plates are often considered unique investment opportunities.

Single number registrations, which are available in some countries, carry a particular prestige, especially the number 1, which is unique and bestows the owner with a certain degree of kudos.

Here, we take a look at some of the most expensive plates purchased around the globe.

In February 2008, the registration ’1′ sold for a staggering £7.25 million in Abu Dhabi, United Arab Emirates.

Only slightly less popular were the numbers 5 and 7, which sold, again in Abu Dhabi, for £3.5 million and £1.58 million respectively.

A registration bearing the number ’18′ sold in Hong Kong for £1.56 million.

One of the most expensive registrations purchased in the UK was F 1, which went for over £440,000, while S 1 sold for just over £400,000

Personal name initials always prove popular choices for registration plates. This would explain why 51 NGH was purchased for £254,000 and MR51 NGH sold for £101,050

RU55 ELL was purchased, presumably by or for someone named Russell, for £79, 314.

Quentin Wilson, a former ‘Top Gear’ programme presenter, has commented that the purchase of a personalised registration is, “better than money in the bank.”

Individuals looking for a personalised registration plate can use the DVLA site, or there is a range of registered dealers who have their own websites. This allows anyone to search online, at their own convenience, to locate the ideal plate.

Personalised registration plates vary greatly in terms of cost. Anyone looking for a plate consisting of a three-letter combination will find that they are readily available and are generally quite affordable. However, registration marks with only one or two letters are rare and as such, can be much more expensive.

The market is huge and there is no end to the options available. At any one time there will be millions of combinations available to search through. Of course, you are limited if you have one particular registration mark in mind, as each one is unique. Also, many marks no longer exist, as when a vehicle is scrapped or written off, the registration mark is no longer in use and not available for purchase.

If you are looking for something specific from a personalised registration plate, remember that names and initials are always in high demand. However, many use this unique format to showcase their hobbies and interests or to promote their businesses.

It is also common for purchasers of personalised registrations to seek to hide the age of their vehicle. Many registrations can do this for you, but you cannot make your car appear newer than it really is. Northern Ireland registration marks can also be transferred onto UK mainland vehicles. Many of these contain the letters I and Z, which UK plates do not; this opens up many more combinations of letters and numbers.

The DVLA offers prefix, suffix, new-style and dateless registration plates for sale on their website, www.dvlaregistrations.direct.gov.uk. All available plates are viewable, but a fee of £137 is payable if you wish to purchase a list of them. You can request a copy of this list by sending your payment to DVLA Personalised Registrations, C2E, Swansea SA99 1DN.

You can only use the plates on a vehicle of equal age or newer. You are not permitted to carry them on an older car in order to make it appear to be a more recent model. For this reason, it is important to know the issue dates for prefix, suffix and new-style registrations.

DVLA will not resurrect old and void registrations for sale. This includes the registration plates from scrapped or written off vehicles. However, if there is a particular plate you are interested in, you can register your interest with DVLA and they will inform you if the current position on the resurrection of plates changes.

Similarly, there are no current plans to offer Q registrations for sale. Q registrations have long been used to identify that the origins or age of a vehicle are uncertain. The Q mark is a consumer protection measure and a change to the current rules surrounding these being unavailable for purchase, transfer or retention would adversely affect the degree of protection offered. To allow the sale of Q marks would be costly and it is likely there would be little return, as they would only be eligible for assigning to a limited number of vehicles.