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Worth more than a Ferrari: The number plates that sell for millions
When it comes to alternative investments, we’re all familiar with the value of classic cars. Ferraris, Lamborghinis and Mercedes are not only a status symbol, but a truly compelling alternative asset class.
But if you thought cars were a status symbol, wait until you hear about the market for heritage number plates.
If you thought cars were a status symbol, wait until you hear about the market for heritage license plates.Credit: Fairfax Media
The vintage number plate market exists all over the world and is prominent in Australian states such as NSW and Queensland. But Victoria may be the most prestigious of all.
The original 285,000 number plates, now known as heritage plates, were handcrafted from steel and vitreous enamel; a durable, reflective, corrosion-resistant alternative material. Today, some of these plates are selling for millions.
Why are these number plates worth so much?
First you have to understand that the value isn’t in the plate itself. It’s in the right to publicly display the plate.
Heritage plates are an instant ticket to semi-fame. Nobody else has them, and getting one is extremely difficult. Even billionaires can’t easily buy one.
People will actually crawl the streets of Melbourne and Sydney looking for rare number plates. It’s called “platespotting”, and entire Facebook groups are dedicated to it.
Valuing number plates follows a simple rule: The lower the number, the higher the value.
When the very first single-digit heritage plates were released in 1932, numbers 1 through 6 were reserved for Victorian government officials. But there was a problem – the governor, premier and police commissioner of Victoria couldn’t decide which of them deserved to get number 1.
Instead of working toward a compromise, they decided to lock the plates up in a safe instead.
Fifty years later, the plates were sold off in “The Great Plate Auctions”. The biggest draw was VIC #1, which sold for $594,000 (inflation-adjusted) to a retired mechanic.
Fast-forward to today, and half a million is just a drop in the bucket. Check out these prices:
- Single-digit plates are worth $3 million to $10 million
- Two-digit plates: $900,000 to $3 million
- Three-digit plates: $500,000
- Four-digit plates: $200,000
- Five-digit plates: $100,000
- Six-digit plates: $40,000
The nine single-digit Victorian heritage plates are basically impossible to get. Nobody is selling. Families who own them view these as a “holy grail.” It has been decades since any of these have sold.
But that hasn’t stopped the market from developing. Plates with two digits and up routinely come up for auction, and demand is massive.
Valuations are similarly high for heritage plates in NSW, with 3-digit plates regularly valued upwards of $500,000, and single-digit plates – such as #4 – selling for multiple millions of dollars.
The heritage plate market today
The lowest-number Victorian plate to be sold in the past decade was #14, which sold in 2022 for an astonishing $2.27 million. This means there are 13 more valuable plates out there that have never hit the market, and probably never will.
The ‘VIC 1’ number plate, owned by Peter Bartels. The plate is worth up to $10 million.Credit: Instagram/heritageplates.
Auction results show just how hot the heritage plates market is today. In 2019, plate #916 sold for $108,000. Three years later, a similar plate, #929 sold for $570,000, more than five times higher.
The #1 plate has changed hands many times over the years, but the most interesting story is from the then-CEO of Fosters, Peter Bartels.
When Bartels left the company in 1992, he made a smart decision. Instead of receiving a lump sum severance package, Bartels asked for the #1 plate, which was owned by the brewery.
In 2007, Bartels received a written offer for the plate at $1.5 million. Just four years later, The Age reported the asset was likely worth more than $2 million. Today, it’s more like $10 million (but good luck getting him to sell it).
What about fraud?
You can easily order another number plate when yours gets damaged. So what’s to prevent folks from legally ordering and selling dupes?
Well, the dynamics of this market are such that creating a replica would be pointless. Remember, when you buy a heritage plate, you’re really buying the right to display it publicly. The actual plate itself doesn’t really matter.
And as a buyer, if you slap a plate on your car that you are not entitled to display, you’re asking for trouble. Not that it’s stopped wannabes from buying fake heritage plates using “I’s” for “1’s” and “O’s” for “0’s”
So how do you buy heritage plates? Getting your hands on one takes a lot of work.
Single-digit plates seldom go to auction. Private sales are also quite rare (though they do happen). Most of the ultra-valuable plates only become available once the owner dies.
If you’re looking for a unique, exotic alternative investment, heritage plates should be right up your alley. But good luck snagging a low-digit one.Credit: Ken Irwin
In Australia, one auctioneer has become the biggest seller of heritage number plates: Shannons. They’ve run most of the major Heritage plate auctions over the past decade.
This is a special and underrated alternative investment market.
Classic cars get all the attention, but these heritage number plates are worth even more. The returns for long-term holders have been incredible, and unlike cars, there’s no insurance, maintenance, storage, or depreciation!
Shannons is your best starting point. In fact, a big auction happened just in May, where Victorian plate number 52 sold for $1,457,000.
If you’re looking for a unique, exotic alternative investment, heritage plates should be right up your alley. But good luck snagging a low-digit one.
In the meantime, you can always go “platespotting,” and hope to find someone who doesn’t understand their value and is willing to sell.
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
Stefan Von Imhof is the co-founder of alternative investing community fund Alts. His favourite alternative investments are vacation rentals, cashflowing websites and, especially, vinyl records.