Investing in a U.K. Vehicle Cherished Registration Number

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I carefully chose the word ‘investing’ as although the primary purpose of purchasing such may not centre around investment, as with every non-consumable purchase one would normally expect to ?always be able to sell on. This is usually the case here, but not always.

A vehicle cherished number is not a tangible asset, but more of an intellectual property right: A right to use a number owned by the D.V.L.A., but only so long as it chooses. That right can be cancelled at any time with no right of appeal. To have your right cancelled would be extremely unusual, and if it happened it would normally be because the number had been misused eg. incorrect spacing of letters, or misleading coloured studs being used to change letters. ?A first offence would not usually result in forfeiture. But fines can be severe.

Who sells cherished registration numbers? They are either sold as virgin (never used before) numbers by D.V.L.A. on a 'Certificate of Entitlement' or they are sold by private individuals on either one of two ?types of certificates: ?a ‘Certificate of Entitlement’ - by someone who purchased the registration without assigning it to a vehicle, or a ‘Retention Certificate’ - a certificate holding a registration once used on one or more ?vehicles but now transferred off the last vehicle onto a holding certificate. ???

Both types of certificate facilitate you potentially buying the same rights in the registration, but with a Retention Certificate there is no way of discovering if any misuse fines (‘strikes’) have occurred in the past, and on buying a registration you buy its hidden history. Usually two or three strikes result in forfeiture even when there has been a change of ownership. There can be no strikes running with a Certificate of Entitlement as the registration has never been on a vehicle.

Are there any other pitfalls to avoid? ?Yes, a U.K. registration will indicate vehicle age. You may only assign it to a vehicle that old or newer, never older.

Only buy if you have a vehicle immediately ready to assign it to. Do not wrongly imagine that you can have your name substituted for the last owner’s name on either type of certificate. ?D.V.L.A. simply hate the public holding registrations on certificates long term!

Before you purchase a certificate check its expiry date. Certificates expire every ten years or so, but are renewable. Once the registration is allocated to a vehicle there is no renewal cost. Renewals solely relate to registrations held on certificates. ??

Most certificates come with the D.V.L.A. ￡80. assignment (to a vehicle) fee paid but check yours for such an endorsement..

Selling a personalised ?registration is difficult for several reasons:? It is a buyers’ market as supply massively exceeds demand.? Impressive sales outlets are limited as few sellers of auction vehicles ever deal in registrations. ??

I will only mention one more danger as this article is only meant to outline the topic:

Avoid the private seller who declares that the registration is on his vehicle, but as soon as the vehicle sells he will transfer the registration to you. Once D.V.L.A. receive notice of vehicle sale they will automatically pass the registration on to the buyer of the vehicle. Even if the same day they receive an application to place the registration on retention. Yes the seller might get away with it (i.e. passing the registration on to you) but such is far from being certain. Weeks of argument and uncertainty can arise, and there is no appeal from the D.V.L.A’s actions. In vehicle law it is god.

More than 99% of registration sales are smooth and problem free. I have possibly spent too much time on rare potential pitfalls. But, it is always someone else’s fault if something goes wrong has almost become a British maxim! 'You didn't warn me against that!' So, preferably buy from an ?established registrations dealer.

Are cherished numbers a good investment in terms of return? That is a difficult question to answer. Such is because it is hard to separate currency inflation (never believe government statistics) within increased sale prices, and what is the emotional cost if the registration possibly takes years to sell? Best to buy with a view to using the registration for life.

A purchase tip? The older the registration the more vehicles it can potentially be assigned to / the more the potential buyers as and when you decide to sell, all else being equal.

? Ivan Sanders, 2023

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