Are Personalised Number Plates A Good Investment? |
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Matthew Kirkman
March 9, 2013
Without a doubt, DVLA cherished plates are becoming increasingly popular these days. With the increased demand, prices for these plates have increased dramatically over the past decade. Actually, they increased so much that many people are now seeing personalised number plates as a private investment opportunity. So how do you decide if getting such plates is a good investment for you?
Here are some points you should consider before jumping in:
There is no guarantee that personalised number plates will continue to be popular. Like all investments, there can be no guarantee that the plate number will continue to increase in value and thus, investing in personalised number plates is a risk. Then again, no good investment comes without risks.
Plates are a luxury purchase and their value may be affected by economic conditions. The sale price could be affected, and it could take much longer to sell. However, in a favourable economic climate, personalised number plates that were bought at a lower price during a recession may prove to be an excellent investment.
There are countless personalised number plates for sale at any time and you should be aware of the fact that you will be competing with an enormous number of other personalised number plates for sale. Thus, you need to price your private registration number well against other similar plates.
Your plate may decrease in value in the short term, but this should not deter you from thinking about plates as a good form of investment. Depending on how you buy your registration number, its value could drop initially. It may take several years to recover before you start to see a profit. This is usually the case if you buy through a broker, who will add a premium to cover the commission costs.
Personalised Number Plates may take some time to sell and you should keep this in mind when making an investment. A private number plate is an asset that generally cannot be converted into cash quickly. Some plates may be sold directly to a dealer, but you will get a much lower price. Otherwise, be prepared to wait for several months if you do not want to lose out. Typically, this applies if your number plate is valued at more than five hundred pounds.
A DVLA transfer fee is applicable to a number plate and this may vary from vehicle to vehicle. If you need to hold onto the number plates for more than a year, an annual renewal fee of twenty five pounds is payable, so you should take this into account in your calculations.
Having considered the above points, if you decide that investing in number plates is good for you, then you should act quickly, as a recession is a good time for such investments. Contact a reputable company in order to get the help you need to purchase personalised number plates as an investment.