How to Buy a Personalised Number Plate as an Investment
Buying a personalised number plate is more popular than ever and, since the DVLA began auctioning private plates, more than 1.2 billion have been sold. The process of purchasing your personalised plate is simple but, if you’re looking at buying the registration as an investment, there are a number of factors that you need to take into account.
Is a personalised number plate a good investment?
Most people who buy a personalised number plate see it as a fun way to add a unique and personal look to their car. However, others purchase a number as an investment in the hope that it will increase in value and they’ll make a healthy profit. If that’s you, check all the facts before you take the plunge.
You will need to look at a number plate as a long-term investment and, like any other investment, the value of your registration could go down as well as up. Even if it does go up, you are not likely to see its value rise quickly, so you need to be prepared to wait, possibly even for decades.
The type of numbers that tend to rise steeply in value are short numbers like 25 O, RR 1, and S 1; specific names such as B1 LLY, or DAV 1D; or humorous ones like ORG 45M. These are also the registrations that will cost you a lot of money to invest in, so you will need to have a healthy budget.
Personalised numbers are considered to be a luxury purchase and, during an economic downturn, their value could be affected. As that could be the time you want to cash in, you might have to be prepared to take a loss. In addition, finding the right buyer who is prepared to pay the price you’re looking for could take months.
On the plus side
Unlike other valuable investments, you don’t have to lock your personalised number plate in a secure vault where it will never see the light of day. Once you own the registration, you can register it to your car and enjoy using it every day. If you change your vehicle, you can easily transfer the number plate. Alternatively, you can transfer it to a retention document until you’re ready to sell it.
Tips for buying number plates as investments
Following these simple tips will help you get the best out of your investment.
- Know your budget and stick to it. Don’t be tempted to buy a plate you can’t really afford.
- Remember that the more rarity value a personalised number plate has, the more expensive it will be.
- Don’t confine your search to the DVLA website. Check out CarReg.co.uk where you can learn about the different types of personalised number plates they offer.
- Only deal with sites that are fully accredited with all the relevant organisations such as CarReg,which also has over 30 years of experience.
With this information, you can buy your personalised number plates with confidence, and enjoy them while you wait for their value to rise. Even if your registration doesn’t show a vast increase in value, you are very likely to get back at least what you paid for it. If you make a profit, it’s a bonus.