There is no other license plate like this ONE. Of course there are many other license plates with the number 1. Every state or territory which issues license plates has one. However, no other license plate has ever sold for such a high price, over fourteen million dollars.
The fourteen million dollar License Plate
This ordinary half-pound of metal was sold at auction where a determined buyer paid $14.2 million dollars for one license plate, one with the number one. Yes, this was an unprecedented price paid for a license plate. Yes, it shocked many people. The seemingly reckless abandon of paying $14 million for a license plate was criticized as a frivolous waste of a large sum of money. Fortunately, the proceeds will go to a charity benefiting victims of traffic accidents.
The buyer of this license plate is now “number 1”. He is the king of the road in a country where the lower the number on your license plate, the higher your status. Of course, no one is of higher importance than the owner of number 1. Status was for sale and he bought it.
The plate has been referred to as a vanity plate. This fourteen million dollar license plate exemplifies vanity. The winner did not buy this plate as an investment, to reap a higher reward down the road. The 25 year old buyer bought this plate purely for his own vanity. His star status shines more brightly today.
The price paid illustrates an important economic lesson. There is nothing inherent in the metal and paint on this license plate to make it worth fourteen million dollars. There is a scarcity value for sure, as there can only be one number one. But, not counting pairs, EVERY license plate is unique; each plate has unique numbers, though usually more of them. Every state in the USA also issues a license plate with the number one. None of those have ever sold for anywhere near fourteen million dollars. Just because something is rare or unique does not mean it is valuable. Astronomical value is created only when scarcity is coupled with strong demand for an item. Kind of like oil prices.
The high bidder boasted that he had no competition for this plate, he was resolved that it would be his. Well, that’s not true. He certainly had some competition, the other bidders who also wanted to be number one. They bid along with him, up until the $14.2m price was determined to be the limit of the plate's value. In fact, it was the #2 bidder who determined the value of #1. After the auction, the winning bidder revealed that he was prepared to pay up to $27 million dollars for the #1 license plate. So the “value” of #1 was truly decided by the #2 bidder who eventually applied reason to the bid amount and ceased bidding.
What is different about this record-setting plate price is where the #1 license plate was sold and where it will appear on the road, in United Arab Emirates, specifically Abu Dhabi. Abu Dhabi is the richest city in the world. It has less citizens than Milwaukee Wisconsin, but AD sits on almost 10% of the world's oil. This is a city of noveau rich, as it wasn't until 1958 when the world's fifth largest oil reserve was discovered below Abu Dhabi. Eureka! The citizens of Abu Dhabi now have over $1 trillion invested abroad; over $17m per citizen on average. This is a place where big things happen and brash action is the norm, the perfect place for a 14m license plate.
But why did the numero uno license plate sell for so much? The price bar for what the #1 plate was worth was set in an earlier Abu Dhabi auction where the number 5 license plate sold for $6.8m, to a relative of the new owner of #1. Is #1 worth twice as much as # 5? Of course it is! Unless the government were to issue a number zero plate. That could cause some consternation to uno-plate owners. But let’s face it, saying “I’m a zero” will never have the same cachet as “I am number one, just look at my car bumper, it says so”.
Less is more. The $14 million dollar #1 license plate is not adorned with beautiful and unique artwork. It is unique, but you would be hard-pressed to call it beautiful. The money was not paid for the #1 license plate itself, it was to purchase the status of owning the plate. Rumor has it this plate will soon appear on the owner's Pagini. Sweet!
If a rock bounces up and scratches the #1 plate or if it is stolen from the owner’s vehicle, he will simply have another one made. No big deal, he will still be the only person legally using number ONE on his vehicle. If by unfortunate fate the car bearing #1 is wrecked, will the insurance company declare the plate is a total loss and payout $14m to replace it? I doubt it.
There is now a surge of excitement among people who own low digit plates. The owner of a 2 digit Wisconsin license plate sought our recommendation for a high-end auction house to list his plate with. Asked for our estimate of how many millions his 2 digit Wisconsin plate might bring, we replied "somewhat less than $14m".
Looking for a special license plate for yourself? Thousands of license plates are for sale at PlatesUSA. And every one of our license plates is priced under $14 million...
Posts: 2526 | From: ca. | Registered: Jul 2005
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posted
Delaware man spends $675k on license plate 6
Posted Feb 21st 2008 10:27AM by Noah Joseph Filed under: Auction Action, Etc.
f we didn't know better, we'd think there was a lack of worthwhile ways to spend money on cars; what with all the apparently obscenely rich motorists out there dropping enormous amounts of money on license plates – the one part of the car that the rest of us take most for granted.
After the British tuner who spent $870k on UK's "F1" plate and the sheik who dropped $14.5 million on the UAE's number 1, Frank Vassallo IV of Wilmington, Delaware, just bought license plate number 6 for $675k at auction, and admittedly was prepared to spend up to a million. His family already owns Delaware plates 9, for which they paid $185k at auction in 1993, and number 27. "It's a family thing," explains Vassallo. "It's a Delaware thing." It's an I've got more money than I know what to do with thing, if you ask us. But hey, it's his money.
so, would anybody here shoot somebody for robbing this idiot of 100$ ?
-------------------- It's never a good idea to change horses on the way to the apocalypse. Posts: 27105 | From: USA | Registered: Sep 2003
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