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When it comes to investing, the first thing people think of is in stocks but, it's possible to invest lucratively in private number plates. This is done by purchasing a popular name, group or initial and holding on to it for an extended amount of time until it becomes sellable. Many people would pay for the opportunity to have a long-sought-after nameplate displayed on their car.
Is investing in private number plates a good idea? Yes, actually, as registration of plates has continuously gone up over the years with no signs of stopping. There has been a significant growth every single year, with the market doubling over five years from 85 million to almost 250 million. There are many websites that you can buy personalized number plates from in the UK, including the DVLA and Absolute Reg.
Doing some research before investing is a good idea, so let's go over some questions you should consider.
Reasons for Investing?
When investing in any business, stocks or collector's item, it is difficult to determine whether the market will stay. You should invest in nameplates that will likely turn a profit and don't have sentimental value to you. If you buy something you'd want to put on your own vehicle, it will be harder for you to sell. Make this a business instead of a passion project, and you'll make more money.
How Long will you Hold on to a Name Plate?
Turning a profit may take some time, and renewing a plate may cost you more money than you bargained for. If you see the nameplate hasn't turned a profit yet, you may have to wait another 10, 15 or 20 years until it does. You won't want your nameplate to expire, or else holding on to the plate would be useless. Find a plate that you're sure will maintain value and renew it regularly.
Are You Prepared for the Risks Involved?
Any investment comes with some degree of risk. Your investment could be worthless in a matter of years, and since number plates are considered a luxury item, it's difficult to know where nameplates will be in the next few years. The good news is that plates are still very profitable, and likely will for an extended period of time unless a global recession occurs.
What can change?
Registration can exist on certificates or on the vehicles themselves. If registration is assigned to a specific car, there are no renewal charges as of the date this article was written. But, you don't have to put it on a vehicle. This way, the certificate will exist indefinitely; however, you don't want your registration to expire and lose your right to the plate.