The pros and cons of investing in a private number plate

Purchasing a new car is always an exciting moment in your life, and if you read our July article on how to choose the correct route, you’ll already know the pros and cons of the various options.

Read more: How to purchase a car: The pros and cons to help you decide which route might suit you

Once you’ve found your new set of wheels, you might start thinking about how to make it your own.

For some, this might mean selecting a distinctive colour or changing the interior.

For others, it’s about adding a sense of individuality with a private number plate. While this can be a fun way to personalise your car, it requires careful consideration.

So, if you’re weighing up the idea, here’s what you need to know about purchasing a private number plate, and the potential benefits and drawbacks of doing so.

There are several routes available to you if you wish to purchase a private plate

Before purchasing a new private plate, it’s vital to be aware of the cost.

Prices can start from around £200 for a new, less distinctive plate, while some of the more eye-catching numbers can get incredibly expensive.

Indeed, according to Regtransfers, “JB 1” is the most expensive plate in the UK, valued at £608,600.

There are typically two main ways to purchase a private plate.

1. From the DVLA

The Driver and Vehicle Licensing Agency (DVLA) typically holds nine private number plate auctions each year. They’re held online and run for seven days at a time.

You can check the dates of any upcoming auctions or register as a bidder through the DVLA Auction website.

Alternatively, you can search for a private plate on the DVLA’s Personalised Registrations website and purchase a new one outright.

Then, when you purchase one, you’ll usually get a V750 certificate of entitlement to prove you have the right to put your new number on your car.

2. From a private dealer

You don’t necessarily have to go through the DVLA to purchase a private plate. Instead, you could simply buy one from a private dealer.

This could include a firm specialising in dealing with plates, or someone wanting to offload their old number.

If you buy a plate that’s been used before, the seller will provide a V778 retention certificate. This – as well as physical ownership of the number – proves you have the right to the plate, even if it isn’t attached to a vehicle.

As such, it’s vital to ensure you have the correct paperwork before handing over any money.

Buying a private plate could offer individuality, and might even be a wise investment

One of the main benefits of a private number plate is its ability to create a personalised identity for your vehicle.

If you’re especially proud of your new car, a personalised registration could be a distinctive way to stand out from the crowd.

Some people also view private plates as an investment.

The BBC reveals that more than 1.2 million private plate transactions took place in 2024, up from 500,000 in 2014.

As demand rises, so do the prices of private plates, meaning you could potentially turn a profit. Just remember there’s no guarantee of this.

If you’re a business owner, a private plate could act as a sort of mobile marketing. You could, for example, incorporate your company name or slogan into your reg number, creating brand recognition wherever you go.

Private number plates can be incredibly expensive, and might even make your vehicle a target

While the thought of a private plate can be appealing, it’s important to be aware of some of the potential downsides.

Perhaps the most significant is the cost.

Prices can vary from a couple of hundred pounds to hundreds of thousands – a significant investment for a purely cosmetic addition to your vehicle.

Hoping to turn a profit in the future might also be risky. The market for private plates tends to be unpredictable, and what seems desirable today might become unfashionable over time.

There are also potential security concerns to keep in mind.

A highly distinctive plate might be easier for other road users to remember, which can make your car more noticeable.

This could increase the risk of unwanted attention, whether from thieves or in situations such as road rage incidents.

The rules surrounding private plates are strict, and making a mistake could prove costly

If you decide to go ahead with your purchase after weighing up the benefits and downsides, it’s essential to ensure that you understand the rules.

UK number plates must follow strict formatting requirements, including the current spacing, font, and size.

The only typeface permitted is the “Charles Wright 2001” font. Any creative tweaks, such as altering the spacing to form a new word, could make your plate illegal, resulting in fines of up to £1,000 and even having the registration withdrawn.

You also can’t use your plate to make an older vehicle appear newer than it actually is. For example, displaying a plate with a later year identifier on an older car would be illegal.

In this instance, your car could automatically fail its MOT. Or, in more serious cases, the police might seize your vehicle until the plate is corrected.

It’s equally important to be vigilant of fraud when buying or selling a private plate. Scammers will sometimes take money from you without supplying the plate, or use stolen certificate details to transfer ownership illegally.

You should never share images of your V750 or V778 documents, either, until money has changed hands. If you do, scammers could assign the plate to their own vehicle or sell it to another buyer.

With all this in mind, it may be prudent to only use a reputable seller or conduct all transfers of ownership through the DVLA.

Get in touch

We are here to help you manage your wealth and confidently work towards your long-term goals.

If you’d like to find out more about how we could help you and your family, please get in touch.

Please email us at info@logicfinancialservices.co.uk, call 01491 612 754, or drop into the office.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.