CONTRACT hire companies could be overestimating the P-plate premium they are placing on August contracts if Government plans to scrap the annual registration plate change go ahead.

BCH Vehicle Management managing director Richard Pepper says some companies are accounting for a premium of up to £300 - which could be completely wiped out if either a new half-yearly or quarterly registration plate change scheme is adopted within three years.

CAP Nationwide operations director Andrew Wilkinson said: 'Technically, BCH is right. The P-plate premium will almost disappear if the quarterly registration plate change comes in. But three years is a long time, and other factors could affect used prices more markedly than the registration letter.' The motor industry is expecting bumper August sales of close on 500,000 units.