Car plate prices in Shanghai set a record in yesterday's auction, exceeding the 60,000 yuan (US$9,523) benchmark for the first time.

The average price for a license plate rose to 61,626 yuan (US$9,782), up 3,001 yuan from a month earlier, auction organizer Shanghai Commodity International Co said. The lowest price increased 2,700 yuan to 61,000 yuan.

The price hike was in line with auto buyers' expectations as prices have been above 50,000 yuan since July. The average price surpassed the previous record of 58,625 yuan set last month.

"This is the most expensive piece of iron in history," a bidder, referring to the metal the plates are made of, joked on Weibo.com.

The city government increased the quota to 8,500 this month, 500 more than last month. The number of bidders was 22,706, down from 24,897 in March.

Dealers said some bidders, who had lost in previous auctions, put in high bids after seeing upward sentiment in the past few months.

There is also solid demand from new car owners who are eager to get a plate before the Labor Day holiday in May.

Higher car plate prices have affected vehicle demand in Shanghai, particularly among buyers of less expensive vehicles.

"It's really hard for me to afford a car plate costing more than 60,000 yuan while my new VW Polo only costs 77,900 yuan," said a car owner surnamed Liu.

Dealer Li Wei of FAW-VW in Shanghai said some customers are choosing to buy standard versions of vehicles instead of the premium variants "in order to set aside money for a car plate."

Source:shanghaidaily.com