8. Delaware License Plates

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• In Delaware, low-digit license plates are highly valuable assets that originated as status symbols reserved for early political and prominent figures, and can now be bought and sold for significant sums.  Copied to clipboard!
• The market for desirable Delaware license plates is facilitated by brokers like Aaron Dunphy, who manage transactions where the value lies solely in the number and the right to display it, not the physical plate.  Copied to clipboard!
• Low-digit Delaware license plates function as Veblen goods (where high price enhances appeal) and are also viewed by collectors as appreciating investments, sometimes yielding returns comparable to or exceeding traditional assets.  Copied to clipboard!

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License Plates as Valuable Assets

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• Key Takeaway: Delaware license plate numbers are treated as valuable assets transferable between drivers, unlike standard plates.
• Summary: For most people, a license plate is a forgettable identifier, but in Delaware, the right number is a valuable asset. Delaware permits residents to transfer their license plate numbers, which has created a market for desirable tags. The value is in the number itself, not the physical plate, which can be bought for as little as $10.

Marketplace for Low-Digit Tags

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• Key Takeaway: Aaron Dunphy established a marketplace for Delaware license plates after noticing customer interest exceeded interest in the cars themselves.
• Summary: Aaron Dunphy runs low-digit tags, a marketplace for Delaware license plates, having arranged over 2,000 sales since 2005. Prices on his site range from $1,200 for a five-digit plate up to $65,000 for number 979. Delaware’s DMV allows for quick title transfers, giving it a bureaucratic advantage over states where transfers can take months.

Scarcity and Single-Digit Value

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• Key Takeaway: Single-digit plates are extremely scarce, with only nine in existence, and one coming to market could sell for nearly a million dollars.
• Summary: There are only nine single-digit plates, and one might only appear on the market once in a decade. Dunphy estimates that if a single-digit plate became available today, it would likely sell close to a million dollars. Two-digit plates have recently sold for prices ranging from the low hundreds up to over $400,000.

Economic Value and Investment

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• Key Takeaway: The total value of Delaware plates (10 through 9,999) was estimated at $227 million, nearly six times the DMV’s operating budget.
• Summary: Economists calculated the total value of Delaware plates from 10 through 9,999 to be $227 million. Low-digit tags are considered an investment, potentially appreciating over time at an average annual return of about 9%. Plate number 20, sold for $5,000 in 1958, later sold for $410,000, reflecting a 7.6% annual growth.

Collector Family History

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• Key Takeaway: The Vasalo family owns one of the largest collections of low-digit plates, including number six, which sold for a record $675,000 in 2008.
• Summary: Frank Vasalo III’s family, through Fusco Management, owns a massive collection of low-digit plates, starting when his father-in-law bought plate 477 for $800. The family spent around $2 million on over a dozen plates, including number nine for $185,000 in 1994. Owners must be vigilant about registration renewal, as missing a deadline allows the DMV to release the valuable tag to the public.

Status Symbol and Global Context

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(00:12:19)

• Key Takeaway: Low-digit tags serve as a potent, non-subtle status symbol in Delaware, a phenomenon mirrored by high-priced plate sales globally.
• Summary: Having a low-digit tag makes the owner a local celebrity, often prompting strangers to ask for photos of the car and plate. This status signaling is a key allure for buyers, reinforcing the historical perception of low-digit owners as ‘big wigs.’ This trend is seen globally, evidenced by Dubai plate number one selling for $14.3 million in 2008.