If your car is also your pride and joy, you probably spend at least part of your disposable income on improvements and modifications.
There’s definitely nothing wrong with that – we all need to spend a bit of money on the things that we love. But did you know that, if you think carefully about how you improve your car, the changes you make could also be investments for the future?
Personalised car registration numbers are a great way to make your vehicle stand out on the road, but they also have excellent resell value. This makes them an interesting investment option, as unlike most luxury accessories you might buy for your car, you’ll be able to make back your money – or potentially even increase it – when the time comes to sell
Choosing your number plate
The most desirable number plates are those that are very short, or that clearly spell out a popular name (e.g. ‘DAV 1D’). Historically, the value of these types of number plate has tended to rise quite steeply, so if you have room in your budget to purchase one then you may be able to make a lot more money in years to come.
The cost of these may be prohibitive for some, but even if you can’t afford one of the rarest registration numbers there’s no reason to despair. Even the more ordinary personalised number plates typically go up in value over time, so although you’re unlikely to see the same profit margin, you should still make money in the future. At the very least, you can hope that you would get your money back if you decided that you no longer wanted to use the registration.
Benefits of investing
One of the best things about a number plate as an investment is the fact that you can show it off without worrying about damaging its value. Because the investment value is tied to the registration number itself rather than the physical plates, you’re not taking any risks by using it for your car while you wait for the value to rise. If you change your vehicle in the future, you’ll be able to transfer the registration number to the new car and continue using it.
Items such as numberplates can be used alongside more traditional investments to diversify your portfolio. This means that you’re spreading your risk and therefore hopefully covering any potential losses.
The value of an investment is never guaranteed, and the price could go down as well as up. With car registration numbers, you’ll need to be able to find a specialist buyer when the time comes to sell – somebody who’s looking for your specific number-letter combination. This can make it slightly harder to sell, although you shouldn’t have too much trouble if you’ve chosen a number with mass appeal.
This means that investment in number plates won’t be right for everyone. However, for those who are also interested in owning luxury accessories for their car, it’s a great way to get your money’s worth.
How to buy your number plate
When it comes to buying your number plate, make sure you have a clear budget in mind before you start. Then, you can use a dedicated dealer to find a number plate that suits both your car and your investment goals. For instance, CarReg offer number plates in a range of different formats and price points to suit any buyer. They will also be able to discuss your purchase with you ahead of time, so if you want some expert advice before you but then it’s a good idea to go through a reputable dealer.
The process of buying your new number plate is relatively straightforward. After you’ve chosen a number and paid for it, you’ll receive a document confirming ownership. There will then be a small amount of paperwork needed to transfer the number to your vehicle. You don’t need to transfer it immediately, so if you’re not planning to use it for your car just yet, that’s fine too.
Assuming you do want to display the plates on your car, the final step will be to have the plates made by a local manufacturer. Then you can use them proudly, while keeping the documentation safe at home.