Why one Swiss canton has stopped auctioning off car licence plates
Special vehicle licence plates are auctioned off in Switzerland for thousands of francs (and sometimes much more). But one canton has stopped the practice for now - because it is swimming in money.
And yes - perhaps to nobody's surprise - it's the canton of Zug, which is home to the most millionaires, that is not accepting any money from motorists for special licence plates - at least for now.
Switzerland doesn't allow drivers to personalise their number plates, so special or lucky numbers are desirable and can sell for thousands if not hundreds of thousands of francs.
It's no wonder then that some licence plates spark a frenzy. That's how you know if someone is really wealthy in Switzerland - check their car for a special number plate.
In 2018, a "ZG 10" number plate, standing for the Swiss canton of Zug, sold in an auction for 233,000 Swiss francs - breaking Swiss records. It belongs to Niklas Nikolajsen who founded Bitcoin Suisse AG, according to newspaper NZZ.
It came about a year after businessman Otto Ruppen forked out 160,100 francs for "VS 1", with the letters standing for the Canton of Valais.
Unlike most European countries, when a licence plate is handed out in Switzerland, it goes to the person not the car, meaning they are often passed down through generations.
READ ALSO:
- Why are Zug and Schwyz home to the most millionaires in Switzerland?
- Which Swiss canton has the most millionaires?
Zug hits pause on selling number plates
For the time being, Nikolajsen doesn't have to worry too much about being overtaken by another driver with an even lower Zug number on their licence plate.
That's because the Zug government recently stopped auctioning off car registration numbers after a decision taken by the cantonal parliament last autumn as part of the budget discussion.
A regular Zug number plate. Photo: Hornet Driver/Wikimedia Commons
Why are they stopping the auctions? It's down to a very Swiss explanation: there is simply too much money in the Zug treasury at the moment and the canton can easily do without the 600,000 francs it earns per year from selling licence plates.
Things looked different in 2017 when the canton aimed to boost its coffers as it went through a rough spot. The proceeds from the auction of attractive car numbers was one of several measures to generate more revenue.
Those times are long forgotten. The 2022 annual accounts already closed with a record result - the revenue surplus amounted to CHF 332 million.
But politicians are not ending the auctions completely - they are merely on pause in case the canton needs to boost revenue in future.
Zug is the capital of luxury cars in Switzerland. According to a study by Axa in March 2023, the average value of a car in Zug is around 63,000 francs - more than a third higher than the Swiss average.
READ MORE: The dos and don'ts of driving in Switzerland
You'll see a parade of Porsches, Maseratis and Teslas squeezing through the narrow streets in the city of Zug and in Baar, where financial service providers, entrepreneurs and crypto enthusiasts live next door to each other.
But anyone who wants to get hold of a low Zug number plate for their fancy ride will have to be lucky or look around the open market.
The road traffic office puts returned number plates in storage for a year. During this time, the owner can have it back or assign it to someone.
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And yes - perhaps to nobody's surprise - it's the canton of Zug, which is home to the most millionaires, that is not accepting any money from motorists for special licence plates - at least for now.
Switzerland doesn't allow drivers to personalise their number plates, so special or lucky numbers are desirable and can sell for thousands if not hundreds of thousands of francs.
It's no wonder then that some licence plates spark a frenzy. That's how you know if someone is really wealthy in Switzerland - check their car for a special number plate.
In 2018, a "ZG 10" number plate, standing for the Swiss canton of Zug, sold in an auction for 233,000 Swiss francs - breaking Swiss records. It belongs to Niklas Nikolajsen who founded Bitcoin Suisse AG, according to newspaper NZZ.
It came about a year after businessman Otto Ruppen forked out 160,100 francs for "VS 1", with the letters standing for the Canton of Valais.
Unlike most European countries, when a licence plate is handed out in Switzerland, it goes to the person not the car, meaning they are often passed down through generations.
READ ALSO:
- Why are Zug and Schwyz home to the most millionaires in Switzerland?
- Which Swiss canton has the most millionaires?
Zug hits pause on selling number plates
For the time being, Nikolajsen doesn't have to worry too much about being overtaken by another driver with an even lower Zug number on their licence plate.
That's because the Zug government recently stopped auctioning off car registration numbers after a decision taken by the cantonal parliament last autumn as part of the budget discussion.
Why are they stopping the auctions? It's down to a very Swiss explanation: there is simply too much money in the Zug treasury at the moment and the canton can easily do without the 600,000 francs it earns per year from selling licence plates.
Things looked different in 2017 when the canton aimed to boost its coffers as it went through a rough spot. The proceeds from the auction of attractive car numbers was one of several measures to generate more revenue.
Those times are long forgotten. The 2022 annual accounts already closed with a record result - the revenue surplus amounted to CHF 332 million.
But politicians are not ending the auctions completely - they are merely on pause in case the canton needs to boost revenue in future.
Zug is the capital of luxury cars in Switzerland. According to a study by Axa in March 2023, the average value of a car in Zug is around 63,000 francs - more than a third higher than the Swiss average.
READ MORE: The dos and don'ts of driving in Switzerland
You'll see a parade of Porsches, Maseratis and Teslas squeezing through the narrow streets in the city of Zug and in Baar, where financial service providers, entrepreneurs and crypto enthusiasts live next door to each other.
But anyone who wants to get hold of a low Zug number plate for their fancy ride will have to be lucky or look around the open market.
The road traffic office puts returned number plates in storage for a year. During this time, the owner can have it back or assign it to someone.
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