INVESTMENTAuckland New Zealand
Investment Plates, aren't they just blue personalised plates?WHAT'S THE HISTORY?
In 1987 through the amendment to the Transport (Vehicle and Driver Registration And Licensing ) Act 1986 the Government allowed the personalisation of number plates.
The Government tendered the right to sell personalised plates on its behalf. The private company, Personalised Plates Limited was the successful tenderer and acts under contract as the sole and exclusive agent of the Government.
The company offered two types of plates. The first group with black or red characters on a white background, and the second group with blue characters on a white background known as Investment Plates.
WAS IT SUCCESSFUL?
From its start in 1989 to early 1996 the results were fantastic.
Then the wheels started to fall off.
WHAT WENT WRONG?
Why did a successful formula go wrong? Here is my opinion.
There were a lot of rules and restrictions when selling through Personalised Plates Ltd. For example they wouldn't sell if you hadn't held the plates for 12 months. The selling price for a new plate was set in stone (by law). The commission was quite high, for example on a $45,000 plate the commission was $5,500 OUCH! So what did people do? Go to the secondary market.
The secondary market was where sellers sold their plates privately whenever and for whatever price they liked. Because of the great returns up to that time, sellers could afford to drop their prices below set market prices and still make a good profit.
And as long as investors were prepared to sell their plates privately at below set market prices there would be few investors willing to buy new releases at higher list prices.
As Personalised Plates were getting less and less of the cake promotional advertising dwindled. I remember large billboards in Newton Auckland with for example "INVESTMENT PLATE XXXX SOLD FOR $XXXXX 150% profit in 12 months!! which was regularly updated with the latest sale........then absolutely no visible advertising almost overnight.
Most Investment plates were unissued or locked away; few ever saw them on a car.
The internet was still in nappies and TradeMe did not exist. People did not have access to a national listing of plates for sale on the secondary market. There would be plates for sale in different regional papers throughout New Zealand with potential buyers in other regions not knowing they were for sale.
The market was not established enough to weather the economic and political changes at that time.
Talk about Déjà Vu Look at the date of this letter
The type and style of Government was changing, MMP was being introduced. It was a distraction.
In July 1997 Personalised Plates Limited changed hands. As stated in an update letter dated 11th August 2003, "The pricing formula upon which plates were offered to the market by the old company means that we are unable in law to offer plates to market either first time or resale at prices less than or equal to the last sale in a series".
Only about 2,600 investors owning 3,700 plates are a very small proportion of the population having a direct interest in the plate market. Add to that many investors reside overseas and they don't have ready access to publications in New Zealand.
Experience with my plates tell me there is a generation of New Zealanders who don't know Investment Plates exist(ed). This has been caused by a lack of promotion, advertising and information.
WHY SHOULD INVESTMENT PLATES BE AN INVESTMENT?
Why should Gold be valuable - It is only useful in fillings and coating electronic terminals- and there is plenty for that purpose? But it is relatively scarce and supply is regulated.
Why should diamonds be valuable - the only real use they have is in grinding applications where clarity, cut and colour don't matter? But they are relatively scarce and supply is regulated.
Aluminium is a much more useful product from which we all benefit daily. It should be very valuable, but it is the most abundant metal in the earth's crust.
Scarcity. There are only 13,000 Investment plates in total. Only 3,700 of these have been released. They are scarce and their supply is regulated.
They are treated as an investment in 14 other markets worldwide that have been running for 30 plus years. See examples throughout this site.
The title remains with the legal owner-they are simply replaced if:
WHY IS THIS AS GOOD A TIME AS ANY TO INVEST?
WHAT TO DO NEXT?
We all need to promote curiosity and interest.
Potential investors need to know Investment Plates exist.
Get the plates on your car! That is why when you list with us we send you plate surrounds directing people to this web site.
Take advantage of any other promotional opportunities.
We will list the plate with your asking price.
We will get the website ranked as high as possible.
Examples Of Success In Other Markets...
Current WORLD record
Current UK record
Current Australian record
Hong Kong record