Paul Jolly reveals the billion-pound business behind cherished number plates

Private plates, or to give them their correct title, cherished marques, are a feature to be seen on many of our cars and the business is worth billions of pounds.

In fact nearly £3 billion since 1989 when DVLA started to sell numbers and is now a veritable cash cow for the Treasury. This government department has cleaned up here and as a business model, it knows no equal. Consider the facts.

Firstly, this is a total monopoly on the sale of registration numbers. No one else can sell from the bank of previously unused numbers, or older numbers that got returned to DVLA when cars were scrapped, exported or written off. 

Secondly, there are armies of clever folk at DVLA working out smart combinations which will appeal and have value when launched via the online auctions. These previously unused registrations sell for many thousands of pounds.

Thirdly, the raw material cost is zero. The number plate is created out of thin air and at all times, the plate actually belongs to DVLA. You simply own the right to display the number plate.

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Fourthly, transfer fees and retention fees (£80) continue to earn DVLA money each time the plate is moved from car to car or placed on retention with this revenue stream often earning as much each year as the sales.

Fifthly, I nearly forgot, all sales proceeds attract a further 20% Vat for the Treasury, once again!

Oh, and sixth, all registrations and the entire system is enshrined in law.

Famous numbers include COM1C (Jimmy Tarbuck) MAG1C (Paul Daniels) MOV1T (Cliff Richards).

Glamour model and sex symbol Fiona Richmond had FU 2 on her E Type Jaguar and Tory MP Gerald Nabarro had six plates from NAB 1 to NAB 6 adorning his luxury cars.

High hitters include K1NGS (£185,000) 51NGH (£201,000) DEV1L (£240,000) KR15HNA (£180,000) with 250 selling for £400,000 probably now on a Ferrari 250.

Recent figures show DVLA sold £150million worth of plates and £110million of fees in 2023.

Wouldn’t it be nice if just some of these funds filled our lethal potholes.