Drivers buy personalised registrations instead of new cars

Despite a sharp slump in new car sales and soaring motoring costs, hundreds of thousands of drivers are still buying personalised registrations, according to research by online insurer swiftcover.com to coincide with the launch of the new ‘59 registration plate.

A survey by swiftcover.com found that 69% of drivers say their motoring expenses have increased in the past 12 months, whilst new car sales figures show a 21.5% drop compared with last year. Yet sales of personalised plates only fell by 4% in 2009 compared with last year.

However, the prices drivers are willing to pay for their personalised registrations fell significantly, with the average online price falling by 8%, whilst the average auction price crashed by 17%, swiftcover.com’s research found:

236,000 personalised number plates were bought in 2008/09, down from 245,500 the previous year

£80.6 million worth of personalised number plates were sold in 2008/09, a fall of £5 million on the previous 12 months

£350 was the average price for personalised numbers plates bought online, down from £380 in 2007/08

£2,500 was the average paid for personalised registrations at auction in 2008/09, down from a an average of £3,000 in the previous 12 months

Despite the significant drop in average sale prices, this year saw the highest ever price paid for a number plate at auction, with 1D selling for an amazing £352,000.

Tina Shortle, marketing director of swiftcover.com, says the relatively strong sales of personalised number plates shows that the UK remains a nation of car lovers. She explains: “Although new car sales are down over a fifth and our own research shows that motorists are feeling the pinch with their running costs, hundreds of thousands of drivers are still indulging in posh number plates.

“For many drivers personalised registrations add to the enjoyment of motoring. It is probably the case that whilst people might not be able to afford to buy new cars or update their vehicles at the moment, splashing out on a flash number helps to lift the gloom a bit and make motoring more fun.“

swiftcover.com’s survey also found that 64% of drivers blame the government and higher road and fuel taxes for the increase in motoring costs. But motorists told swiftcover.com that they are willing to consider a range of sacrifices to save their cars:

28% would sacrifice going to the pub instead of giving up their car
26% would stop buying electrical gadgets such as TVs and iPods
21% would stop having take-aways or eating out
15% would give up buying new clothes and furniture
36% would run their cars on recycled chip oil to save money on their motoring
13% would swap their nice car for a dirt cheap banger
6% would be paid to have their car covered in sponsorship adverts