It is common that the value of your car will automatically decline as it ages. However, the same does not happen to the number plate displayed. It even gains more value if it is a private one. It’s seen as an invaluable investment by most people, and they will spend money to acquire one. Despite it being a lucrative business, the value fluctuates more like stocks and shares. It is, therefore, not straightforward for one to determine the value a plate can gain.
People will get vanity number plates for many reasons most common being vanity. Others just want to showcase their name initials or those of their companies. Whatever the reason, chances are, their value will increase by default over time.
So why invest in one? You have to understand that each number plate is unique and it will remain so forever. Once you get a personalized or vanity number plate, you are guaranteed that the value will only go up in time to the growing desire for being the only single factor in which to sell the number plate. When you make the investment the sentimental value that will be attached to it as time passes by will constantly grow. Its value in twenty years will be double its value in ten years.
You don’t need to be rich and famous.
Although buying vanity number plates is a practice for the rich and famous, average people are gradually picking up the practice especially with the aim of making investment returns from them. There has however been a sluggish trend in its popularity because ordinary people thought it to be a celebrity affair.
If you are planning to make your initial investment in this booming business, you should familiarize yourself with the most attractive number plates; the ones that will gain value soon after purchasing. These are number plates starting with popular names such as Chelsea, Sarah, and John among others. Due to their commonality, the possibility of most people competing on them increases their value.
Successful investments:
Someone might think that it is all stories and there is no real evidence to support the claims. Take for example the VIP 1 number plate which was originally purchased by John Paul II for £62000 in 1979. A few years later, the same number plate was bought by Roman Abramovich the billionaire Chelsea FC owner for £285000. The number plate had gained over £22,000 in a couple of few years.
ELV 1S was sold at £75000 in 1990, and it now has an estimated worth of over £150000. ATT I4H which in October 2015 was sold for £1101 and two months after the initial purchase in December of the same year the same was sold for £8670.
The F 1 number plate which was purchased in 2008 by Formula 1 tycoon Afzal Khan for £440,000 has an estimated value of over 10 million. The list of these successful investments in private number plates goes on and on. You can now tell that the return on investment is huge and can be gained in few months and grow in value as time passes.
Booming business:
The impact that this growth in popularity is creating cannot be ignored. More and more people are opting to have personalised number plates as opposed to having ordinary ones. That has led to an increase in dealers in this business who are competing to have a piece of the pie. Take for example in 2014 when the most expensive vanity number plate “25 O” was sold for a staggering £518,480. The value of this plate number is expected to increase with time, and it can be worth more than double five years to come. This shows that there are no limits to the amount people are willing to spend to have customised number plates that make them feel good about themselves. The secret is getting a shorter number plate; the shorter the initials, the more value. There is also the competition factor that is contributing to the increase in value. Celebrities and the rich are in a race to outdo one other.
Conclusion…
The customised number plate is a good investment with huge returns with time. If you are thinking of buying one, check what the market has to offer here. You just have to know where and what to look for to reap big in this business. There is also an observed growth in its popularity with ordinary people. The growth has not shown any signs of slowing down. Therefore, it’s not too late to get started.
By: Jake Smith
Jake Smith is the founder of AbsoluteReg.co.uk, who specialize in dealing private number plates and share love for cars.