Why do classic number plates sell for so much?

The humble number plate came squarely into frame again this week after a black and white numerical piece set a new Australian record.

The Shannon Melbourne Autumn Auction played host to the sale of Victorian plate ‘101’, which sold for a record $510,000. It beat the previous best sale of $268,000 for a three-numeral plate bearing ‘124’ earlier this year.

The outright record for a number plate was the sale of NSW plate ‘4’ last year for $2.54 million.

As with those sales, the auction this week saw number plates overshadow classic vehicle values in high-stakes bidding – including historic Holden Toranas and Monaros. But why?

Shannons national auction manager Christophe Boribon said heritage number plates have spiked heavily in value because they are viewed as a demonstration of status and wealth.

“Heritage plates are considered collectible and as a piece of art by some people,” Boribon explained.

“There is also a bit of status attached to a historic number plate; if you’re driving around in your $100,000 Mercedes-Benz, and your neighbour rolls up in his $100,000 ‘Benz, the difference might be that you have a $200,000 plate attached to the car.”

Victoria and NSW feature strongest in heritage number plate sales, particularly the earlier plates which denote the very first vehicles to be registered in either state – as far back as 1910.

“A lot of those earlier plates were owned by significant families in their day,” explained Boribon.

“If you go through the earlier versions of Redbook, there are some really influential families that owned those plates. For example, the Hordon family in Sydney owned about five number plates between the father and the son.”

The investment potential of heritage number plates has been realised most in recent years, including instances where family members lucky enough to have inherited a historically-significant piece have offloaded them for big money.

“Those family members might have inherited those plates 20 or 30 years ago, and today they’re selling them for half a million bucks,” Boribon said.

The investment appeal of a number plate makes sense for many, especially when compared with a historic car: no registration, no insurance, no upkeep fees.

According to Boribon, the market for number plates is higher than ever before. He said the plate this week was valued so highly because the numbers were aesthetically and numerically pleasing.

“Numbers mean something, different numbers might appeal to different nationalities. Different numbers have different appeals,” Boribon explained.

“What you’re buying is a contract, the right to display those plates. With a numberplate you’ve got no overheads and it costs you nothing to hold it.”

Motorcycle number plates attract approximately 1/20th of the value of car number plate, according to Boribon. He reckons that, as it stands, plate number ‘1’ for a car in NSW or Victoria could attract bids of up to $5 million.