User:Montecara/Sandbox 4
Vehicle registration plates in Montecara are assigned through an auction system that caps the number of plates available and requires vehicle owners to pay the fair value of their use. Plates come in pairs and must be attached front and back.
The Montecaran government issues plates through the Secretariat of the Environment, Transport, and Urban Development. The number of plates available is determined by vehicle class and is aimed at minimizing congestion and pollution.
Acquisition of a registration plate takes the form of a uniform-price auction held every four months. Before placing a bid, an applicant must provide proof that they have a vehicle available for import. The applicant does not need to hold the title to the vehicle, but there must be a purchase agreement and a vehicle identification number that can be presented to make a valid bid.
Plates remain the property of the Montecaran government and may not be sold or transferred. They are valid only for the vehicle they were assigned to. Transit vehicles, construction equipment, and boats do not require registration plates and are covered by other regulatory frameworks.
Mechanism
Applicants submit one sealed bid each at the price they would be willing to play for a registration plate. The auction window lasts for one week, with bids submitted online through the state's auction portal at targa
A much simplified example would be:
| Bidder | Bid | Winner | Price paid |
|---|---|---|---|
| A | Ł100,000 | 
|
Ł100 |
| B | Ł7,000 |
|
Ł100 |
| C | Ł5,000 |
|
Ł100 |
| D | Ł100 |
|
Ł100 |
| E | Ł99 | 
|
Ł0 (bid returned) |
Because there were only four plates to distribute, the lowest bidder, E, did not win a plate. The price paid by all successful bidders, Ł100, was identical, and the difference between the submitted bid and the winning bid, if any, is returned from escrow. All losing bidders have their full bid returned.
In order to fight collusion among bidders that might artificially lower the price, the government sets a reserve price at each auction which, if not met, means that no plates will be sold. This price is not made publicly available before or during the auction.
Statistics
| Date | Price | Plates |
|---|---|---|
| Dec. 2018 | Ł34,420 | 221 |
| Aug. 2018 | Ł52,198 | 65 |
| Apr. 2018 | Ł37,390 | 197 |
| Dec. 2017 | Ł60,119 | 48 |
| Aug. 2017 | Ł41,101 | 207 |
| Apr. 2017 | Ł38,115 | 173 |
Registration plates are divided into classes and auctioned separately. The classes are:
A: Private cars and motorcycles
- A1: Private cars, no more than 3.5 tonnes
- A5: Motorcycles, engines greater than 50 cm³
C: Commercial cars and motorcycles
- C1: Cars, no more than 3.5 tonnes, for commercial use
- C5: Motorcycles, engines greater than 50 cm³, for commercial use
D: Commercial trucks and buses
- D1: Trucks, no more than 7.5 tonnes
- D2: Trucks, over 7.5 tonnes
- D3: Tractor units (for semi-trailers)
- D4: Semi-trailers
- D5: Light buses
- D6: Buses
E: Trailers
- E1: Trailers of capacity under 750 kg