The price of a new car license plate in Shanghai fell for the sixth consecutive month to an average price of 73,492 yuan, Shanghai Daily reports.
In March the cost of a Shanghai license plate hit a record high of more than 90,000 yuan.
The municipal government has tried to control the plate prices by tightening the auction transfer process and offering more plates during periods of high demand.
New bidding rules will be introduced next month. The first round bidding restrictions will be triggered only by large price increases. Rise of prices of 3-6 percent will result in a price ceiling in the bidding’s first round the next month. Similarly, a price rise of more than 6 percent will result in a price ceiling for the next two months.
“Many would-be car buyers felt compelled to take action this month because at the next auction they will face a lot of uncertainties. No one knows what will happen under the new bidding rules,” said Eddie Zhang, a car dealer in Shanghai.
As Shanghai’s vice mayor, Shen Jun once said, vehicle license plates are as valuable as gold.
[Image credit: @bryangeek]