The recent trend has been towards purchasing private number plates purely for investment purposes and it definitely makes sense. Obviously, it is important to point out the fact that investments can either go down or up, but on the whole, chances of making money are high.
The fact that interest rates are currently historical means that you will not be making any serious returns saving your money in banks. However, before you head out to buy the first old cherished plate you find, it is important to first understand what makes a private number plate valuable.
Dateless Number Plates
Dateless can refer to two things: the plate itself is actually dateless and that it can hold value forever – think of the very early plates with just one letter and one number – M 1, S 1 etc. The plates are undatable, don’t require a celebrity/fashion trend to make them work, and have a striking visual impact.
Obviously, it does not need to be one number/letter combinations with the most expensive plate sold in the United Kingdom was 25 O that was fitted to a Ferrari 250 GTO SWB after the buyer paid £518,480 for it. He later admitted that he wasn’t willing to let it go even if it was in the £1 million area.
The number would still say 25 O as opposed to 250, technically speaking, but we can comfortably assume that the buyer has sufficient funds left over to get himself some ‘show’ plates made.
Higher Value, Even with Use
You can find a bank account that offers a high rate of interest on savings or tuck away some money into an investment scheme; irrespective of the rate of return, your money is still tucked away where it cannot be used.
The same applies to numerous other investments such as gold, jewelry, property, and even to a certain extent, cars – using them or even being able to use them is impractical, but with a cherished number plate that you can stick on your vehicle and drive a million miles, but it will not affect the value.
It is really one of a handful of investments that isn’t affected by use, which means that you can derive pleasure from it all-day, every day without having to worry about impairing its value.
What Makes an Investment?
Truthfully, there are certain rules that define what makes a good investment, but sometimes you get lucky with celebrities, fashions, or social trends and discover that your previously mundane plate actually has some value.
Dateless plates, both in terms of hiding your car’s age or the plate itself being dateless have been previously mentioned, but generally speaking, number plates with fewer characters always tend to be worth more and have more visual impact on your vehicle, which in turn should translate to higher value.
Names are one of the most common themes, as are soccer clubs, car brands and nomenclature, as well as the initials of people with a single number; usually the number 1 is ranked highest, but if you have a fleet of vehicles or would like it to appear as though you have a fleet, you are basically free to pick up just about anything you want.
Whatever your choice or reasoning might be, a cherished registration hardly ever loses money, and on the whole, it will always gain, and you always have the option of putting the plate on retention if you currently lack a suitable vehicle for it, it is actually an incredibly simple process.
Is there any reason preventing you from getting that investment or finishing touch?
Duncan Bannatyne is a professional investor on the popular UK TV show ‘Dragon’s Den’, but besides his multi-million-pound businesses, he also invests in number plates. He actually confesses to having made some money on them and believes that they are some of the easiest things in the world to buy and sell. James Caan, Bannatyne’s fellow Dragon agrees.
Looking back over the past decade, Caan agrees that the prices of private number plates have on the whole been rising. For him, it is all about making a return on investment, but even more important – the fact that they are unique, the only one of its kind in the world, is what makes it ‘fun’.
You have probably seen celebrities of all sorts buying private number plates, but in all honesty, that has more to do with vanity than investment, so when some of the most famous investors in the United Kingdom claim that it is actually possible to make some good money with them, it definitely pays to listen.
Our specialty at newreg is the supply of cherished registrations. If you are unable to find anything suitable, contact us and let us know exactly what you want. Our knowledge of the industry means that we usually know where to start looking.
If you are looking at a private number plate purely as an investment, we can also help. We will give you the best advice regarding what you need to be looking for, the potential ROI of your investment, and we will even handle all the paperwork for you – it is a quick, easy, and simple process.