Businesses could be losing money on buying or selling secondhand business cars.
Because the new number plate system is misunderstood.
A 2006 06 registered BMW 318i saloon is worth £900 less than the same car with a 2006 56 plate, says car auction company BCA.
Businesses may also fail to register that there are three number identifiers in circulation each year. In 2008, for example:
- January and February plates are identified by 57
- March to August plates are identified by 08
- September to December plates are identified by 58
“Although the new registration system has been in existence since 2001, it seems many motorists just have not got to grips with it,” commented Tim Naylor from BCA. “The age of a vehicle has a significant impact on its value, so it is crucial that sellers and buyers know how to identify this information to ensure they don’t end up out of pocket.”
The potential to lose money was highlighted in a survey BCA ran with www.honestjohn.co.uk. A third of respondents couldn’t tell the age of a car by its number plate.
Honest John readers were asked to identify the youngest number plate from four different options, including both the old and new style registration numbers.
- 32% got the question wrong
- 27% thought the old style (pre-2001) plate was the youngest rather than the 2007 plate
- 23% were not aware that the registration reflects the car age
“A used car is an expensive purchase, so it is essential to understand the basics. And that includes knowing the age and corresponding value indicated by the registration plate of the vehicle they are buying or selling,” continued Naylor.
“It seems the current system is far less understood than previous versions, where there was one change a year identified by a letter.”
Further information
- For our Advice Centre feature on Top Tips: Buying a used business car, go here
- For our Advice Centre feature on Know your plates, go here
Car age plate identifiers cause confusion