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This is how it works.
Your car is "ZS04MGZ"
You buy your private plate "MY04CAR"
If you buy it from the DVLA it has the assignment fee included. Most start at around £250. They send you documents to allow you to get a legal plate made and a replacement tax disc.
You display "MY04CAR"
If you then sell the car or wish to transfer or retain the plate, you fill in a form and pay to retain the "MY04CAR" number. The retention fee for a year used to be £105. This was made up of £80 to retain the plate and then £25 to assign it to your next car. If you don't assign it to another car within 12 months, you lose it or you can pay to retain it for longer.
You are then sent documents and tax disc to put the original plate back on.
Hope that helps.
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