In the year 2017, there were 2,540,617 car purchases and 374,968 (14.76%) private number plate registrations. Further, in the same year, the DVLA recorded annual revenue of £111 million which is an 8.8% rise from the £102 million recorded in 2016. The figures above show that for every seven vehicles purchased, at least one driver bought and installed custom plates. Going by the data above, it is safe to assume that the value of private reg plates is set to increase by almost a tenth annually.
Considering that the current number plate format used by the DVLA is set to be used up to 2051, it is also safe to assume that the value and popularity of private plates is set to continue growing. Based on the data we have presented; it is safe to say that speculation on private registration plates is set to be one of the safest and most profitable investments.
If you are a novice speculator looking to dabble in private number plate investing, we have compiled a few tips to get you started…
1. Make Small Investments Initially
The best thing about investing in private plates is that you can choose the budget you want to work with. We recommend that you start small preferably by buying plates from the DVLA auction site. For as little as £250, you will be able to familiarize yourself with the market and the process of purchasing private plates. Once you have familiarized yourself with the market and purchase process you can start building your portfolio gradually.
2. Build a Diverse Portfolio
You may want to buy a private plate valued at £50,000 but the thing you should ask is; how long will I need to hold onto the plate before I can sell it for a handsome profit. With such a capital outlay, wouldn’t it be better to buy several cheaper plates that you sell for larger profit margin? Ideally, you should build a diverse portfolio so that you are not left with high-value plates that will be harder to sell.
However, if you have the cash to finance the purchase of high-value exclusive plates, go for it by all means.
3. Consider Current Trends
To understand which plates will most likely be most valuable in a few years, check the trends in the private plate market. To find out about current trends, check out the monthly and annual sales records that are released by the DVLA and other private plate dealers. Try and identify popular names, locations and careers that are often used or searched for by plate buyers. Remember that private plate details do not need to be pronounceable as long as they have a symbolic meaning. Ideally, you should plan ahead and buy desirable plates whenever they become available.
