The Economics of Everyday Things

Episode 8: Delaware License Plates

Host: Zachary Crockett (Freakonomics Network)
Date: January 26, 2026

Episode Overview

This episode dives into an unexpected status symbol: low-digit Delaware license plates. Host Zachary Crockett explores how, in Delaware, a simple string of numbers on a license plate can be worth far more than the car it’s attached to. The episode unpacks the quirky tradition, its economic logic, and the subculture of plate collectors, revealing how scarcity and status combine to create a booming micro-market.

Key Discussion Points & Insights

1. Delaware’s Unique License Plate Culture

• In Delaware, low-digit license plates are a historical status symbol, originating in the early 1900s when plates were first issued in numerical order, with the lowest numbers reserved for politicians and prominent families.
• The tradition has given rise to a thriving resale market for desirable numbers, with special value placed on single- and double-digit tags.
• “Over time, license plates have become a status symbol in Delaware society.” (Zachary Crockett, 01:01)

2. The Marketplace for License Plates

• Delaware is one of few states that allow license plate numbers to be transferred between individuals, enabling an active marketplace.
• Aaron Dunphy runs LowDigitTags.com, the main marketplace for these plates. Since 2005, he has brokered over 2,000 sales.
• Prices range from $1,200 for higher digit numbers up to $65,000 for certain three-digit plates, and potentially over a million for single-digit tags.
• The transfer process is streamlined: “You can go to the DMV and you can have the tag transferred from one person to the next within minutes... With some of the other states, it takes almost nine months.” (Aaron Dunphy, 04:21)

3. What Buyers Value—and Pay For

• The actual metal plate is nearly worthless; the value lies in the number and the legal right to display it.
• Demand can be sentimental (birthdays, addresses, divorce dates) not just about status.
• “I've sold license plates because of birthdays, addresses, divorce dates...Any type of numbers that might mean something bring a lot more money.” (Aaron Dunphy, 05:19)
• A 2020 NBER working paper estimated the value of Delaware plates between numbers 10 and 9999 at $227 million—six times the Delaware DMV's annual operating budget.

4. The Collectors and Their Motivations

• Frank Vasallo III, a retired developer, details his family’s obsession, started by his father-in-law in the 1960s.
• The family has spent about $2 million to acquire and maintain over a dozen low-digit tags, including single digits—some acquired for hundreds of thousands of dollars.
• “In 1994, Fusco acquired number nine for $185,000 and put it on his white Mercedes.” (Zachary Crockett, 08:59)
• These plates are so valuable they create pressure to keep vehicle registrations updated; missed renewals can allow “vultures” to swoop in and claim expired plates.

5. Status, Scarcity, and Economics

• In Delaware, “having a low digit tag on your car makes you a celebrity.” (Zachary Crockett, 11:10)
• The plates are comparable to classic Veblen goods: they are valued because they are expensive and exclusive.
• Internationally, similar markets exist in places like Dubai and China, with multi-million dollar plate sales.

6. Long-Term Value and Family Heirlooms

• As with fine art or property, these plates appreciate in value; average long-term return is estimated at about 7–9%, though the market is thin.
• “On average, over a long term, you're at about a 9% annual return.” (Aaron Dunphy, 12:42)
• A notable example: Plate number 20 went from $5,000 in 1958 to $410,000 in 2018—a 7.6% annual growth.
• Plates often become prized family heirlooms, subject to inheritance battles, divorce settlements, and auctions among heirs:
  • “The license plate is probably one of the first things that they usually handle. A lot of times the siblings want the license plate, so it ends up having to almost go into an auction setup.” (Aaron Dunphy, 13:55)

Notable Quotes & Memorable Moments

• Would you trade your license plate for a million dollars?
  • “No.” (Frank Vasallo III, 01:17)
• On market value and appreciation:
  • “If you'll buy a car, you're losing 20, 30% right away. Whereas if you have a tag, most likely it's going to be appreciating over time.” (Aaron Dunphy, 12:42)
• On status:
  • “If you had a low license plate, either a politician or a big wig in town. I mean, it's a Delawarean type of thing.” (Frank Vasallo III, 11:38)
• On celebrity and visibility:
  • “A lot of people ask if they could take a picture of the car and the tag...All the guys stopped what they were doing. They all wanted to look at the car and the tag.” (Frank Vasallo III, 11:15)

Timestamps for Key Segments

| Timestamp | Segment | |-----------|----------------------------------------------| | 00:47 | Introduction: License plates as status | | 01:13 | Would you trade your license plate? | | 02:51 | Aaron Dunphy & the license plate market | | 04:21 | Transfer process and Delaware’s DMV | | 05:14 | Sentimental value in plate numbers | | 05:32 | Economic analysis: market valuation | | 07:31 | Plates worth more than the cars/houses | | 07:50 | Frank Vasallo III: Collector’s perspective | | 08:59 | Vasallo family collection and big purchases | | 10:38 | The importance of renewing registrations | | 11:09 | Delaware’s license plate celebrity status | | 11:50 | International license plate markets | | 12:42 | Plates as investment | | 13:32 | Plates in wills and inheritance |

Conclusion

This episode reveals how something as mundane as a license plate can have profound economic and cultural meaning in a small state like Delaware. Scarcity, simple rules allowing transfers, and a bit of historical luck have turned these tags into prized, appreciating assets—symbols of wealth and lineage, rivaling art and real estate in both value and emotional attachment.

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