Obviously the UK had to have a system to keep the car dealers happy and encourage frivolous car changing. Just to get the newest plate.
Just as with our road system, our car-registration system was never designed with enough space for unforeseen growth. Before WW2 the original 2-letter, 4-number method started to run out in some authorities, so we got the 3-letter, 3-number system, which was reversed when they started to run out in the 1950s.
In the early 60s the suffix year-letter appeared, changing in January until 1967, when E ended in September (IIRC). The alphabet continued for about 20 years until the A-prefix appeared. By the end of the century even that could not keep up with demand and the letter changed every 6 months, as now.
One consideration was to limit the number of characters to 7 for easier memorisation. By having two regional letters, two year digits and three random letters, this was achieved while allowing more possible combinations.
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