76-Plate Car Buyers: Why Depreciation Makes GAP Insurance An Essential This September
The new 76 registration plate landed on UK roads on the 1st of September, after weeks of anticipation and rising demand.
Ahead of the new plate change, Auto Trader reflected the typical seasonal uplift in consumer activity, with visits to the platform up 9% month on month and 2% year on year in August. However, its figures also suggested retailers were having to work harder to drive sales, with average new car discounts rising to 10.5%, compared with 9.8% a year earlier.
Significantly, Auto Trader’s data suggested that 4 in 10 of the most in-demand vehicles were all Chinese, with the MG S9 topping the list on 4.1% of enquiries, ahead of the Range Rover Sport and VW Golf.
It's also a big season for new models. This Autumn, four all-new electric vehicles will be joining the ranks of a burgeoning array of EVs with the arrival of the new plate: the Volkswagen ID Polo, the Hyundai Ioniq 3, the BMW i3 Neue Klasse, and the Range Rover Electric. They join a number of recent new arrivals, including the BMW iX3 and the Mercedes CLA Electric.
How the 76 plate changes affect car depreciation
Every time a new plate lands thousands of drivers trade up, flooding dealer forecourts with nearly new part-exchanges almost overnight. That supply surge, rather than anything under the bonnet, tends to accelerate depreciation on cars that are 0 to 2 years old, and there's a psychological effect too: a car that felt current in August can suddenly look a year older now that 76-plates are appearing on the same model, even though nothing about the car itself has changed.
The effect is less pronounced for cars ages 3 to 6 years, while anything over 7 years is barely affected. At that age, condition, mileage and service history matter far more than the numbers on the plate.
Why GAP Insurance matters more than ever after a plate change
Depreciation is exactly why GAP insurance (Guaranteed Asset Protection) exists. Most standard motor insurance policies pay out based on a car's market value at the time of a claim - not what the buyer originally paid for it.
If your car is written off or stolen, this can leave a gap between your insurer's payout and what you originally paid or may still owe on finance or a lease agreement. That shortfall can quickly run into thousands of pounds and is often at its greatest in the first couple of years of ownership, when depreciaiton can be steepest. That's the period many new 76-plate owners will soon be entering.
Buying or selling this September? Key tips
- If you're buying: with the new 76 plates arrival, dealers may offer discounts on cars with the previous registration plate to clear existing stock. Don’t assume the newest plate is automatically the best deal. A small saving may not be enough to make an older-plate car worthwhile, but a discount of £2,000 or more could make it much better value.
- If you're selling: the trade-in rush that follows a plate change is already picking up, so if you haven't listed your car yet, doing so quickly can help you avoid the heaviest competition. Keep servicing up to date, make sure the MOT is current, and have full documentation ready for potential buyers.
If you need a Service or MOT, MotorEasy offer bundle discounts. Click here to find out more.
A new plate doesn't change what's under the bonnet, but it does change the market around your car, and that's worth planning for. Whether you're buying, selling, or just keeping an eye on what you own, it's worth checking you have the right cover in place.
MotorEasy's GAP insurance is designed to protect you against depreciation shortfall, so a total loss claim doesn't leave you out of pocket on a car you've only just driven off the forecourt. GAP Insurance is also available for cars up to 8 years old, so even if you're buying second hand this September, you might still be eligible for cover.
