New Number Plates Could Cause Price Swings for Cars
Drivers are warned of potential price shifts for petrol, diesel, and electric vehicles following the recent introduction of new number plates in the UK.
The new “25” identifier, which rolled out on March 1st, marks the latest update in the number plate system. Experts are now analyzing the impact this change will have on both new and used car prices.
Richard Evans, a spokesperson for webuyanycar, stated that the release of new plates tends to push down the market price of many cars. “By monitoring the value of most car makes and models over time, we’ve seen that the industry average price of a vehicle usually falls when a new plate is released,” he explained. However, not everyone agrees.
Evans also noted that nearly a quarter of drivers (23 percent) believe that new registration plates make secondhand cars more desirable.
Number plates are updated twice a year, in March and September. The next change will introduce the “75” identifier in September. Historically, car sales tend to spike in the months leading up to these updates.
In 2024, UK car sales in February and August were about 30 percent of the sales volume seen in March and September, the months when new number plates were released.
Evans cautioned that the valuation decrease for vehicles varies depending on the car’s age and model. Vehicles can lose anywhere from 15 to 35 percent of their initial value in the first year alone, with the potential for up to a 50 percent drop after three years.
Sue Robinson, Chief Executive of the National Franchised Dealership Association, offered guidance to consumers purchasing new vehicles at this time.
The current number plate system, introduced in 2001, uses the first two letters to indicate the area where the car is registered. These are followed by a two-digit code reflecting the six-month period of registration and three randomly assigned letters.
For example, a car registered in London would have “L” as the first letter, followed by another letter ranging from A to Y. The system excludes the letters I and Q to avoid confusion with the numbers 1 and 0.
Sam Sheehan, motoring editor at cinch, shared that each new plate launch includes a list of banned combinations to prevent offensive or inappropriate registrations from being used.
“It’s very important to stay up to date about number plate rules. Not only is it about staying safe on the road, you could land yourself a fine if you don’t comply. From design to visibility, there might be some surprising rules drivers don’t know about.”
