Texas Metal Dealer Plates and Temporary Tags
Texas Metal Dealer Plates
As a Texas used motor vehicle dealer,
you will be issued metal dealer license plates often
referred to as dealer tags or metal plates. The Texas
Department of Motor Vehicles has strict standards and
guidelines that you
must abide by in order to keep your dealer license plates,
and you must ensure your dealer license plates are being
used correctly in all times. Most, but not all dealers may
receive up to two dealer plates when applying for your
license. Wholesale dealers may only receive one plate when
applying, and only one additional plate, regardless of
vehicle sales. You must mount the plate on the rear license
plate mount. You may not display the plate in a window or
use a license plate magnet fix it to the trunk. It must be
properly mounted like a normal license plate.
Number of Dealer Plates Allowed
The number of dealer plates that may
be purchased depends on the number of sales and your license
type. Motor vehicle dealers may apply for metal dealers
license plates for all vehicle types the dealer is licensed
to sell, and may only use dealer plates on vehicles included
in that license. For example, a dealer who was only licensed
to sell cars and light trucks may use a dealer plate only on
a car or light truck in the dealer's inventory, and never on
a motorcycle or a trailer. When you're renewing your
dealer's license, you can cancel place upon renewal. So
let's say for example you have two metal dealer plates and
when you renew your license you only want one, you may
cancel current plates upon renewal. And by the way, GDN
wholesale auction dealers are not allowed to have dealer
plates.
Must Report Stolen Dealer Plates
You should never
ever leave a metal plate on a vehicle on your lot overnight.
They are often stolen. Thieves love dealer plates, so keep a
close eye on your dealer plates.
If you ever do have a dealer plate
stolen, or if it's missing or damaged, you can select the
plate stickers option in e-licensing. Only one metal plate
is required per vehicle and is displayed in the rear license
plate holder. The dealer plate expires when the license
expires. During the license renewal process, the dealer has
the option to order new plates and renew existing metal
plates, and the department will issue new stickers to the
renewed plates. Let's go ahead and cover the guidelines for
usage of metal dealer license plates.
Legal Use of a Texas Metal Dealer Plate
Texas dealers can legally display
dealer license plates on the following vehicles. On a
vehicle owned by the dealership titled in the dealership
name, on any vehicle that is used by the dealer, the
dealer's, family, or employees for personal use, on any
vehicle that is being demonstrated for sale, on any vehicle
being operated by the dealer with permission of the dealer,
only on a vehicle that has a current inspection, only on a
vehicle type the dealer is licensed to sell. So always be
aware of that. You may not place a metal dealer plate on a
vehicle that you are not licensed to sell. They may only be
placed on vehicles that you are licensed to sell.
Prohibited Use of a Dealer Plate
Now, let's go over what you may not
do with a metal dealer license plate. Placing a Texas dealer
license plate on the following vehicles is strictly
prohibited. On any vehicle towing another vehicle or any
vehicle towing a load, on any vehicle not titled in the
dealership name, on any courtesy vehicle that is loaned to a
customer, on any dealer that is loan to a school or any
vehicle the dealer is not licensed to sell, on any vehicle
with signage attached, such as large stickers that might
advertise the dealership name. You may never place a dealer
plate on a truck that's pulling other vehicles or like a
loaded trailer. If you use a truck to transport your
vehicles to and from auctions, you will need a tax title and
license the truck in your dealership's inventory.
Now, let's say for example, you stack
several trailers on the top of another trailer when
transferring them to the dealership. You cannot place a
dealer plate on the bottom trailer. In this case, the bottom
trailer would need to be licensed in the dealership name
because it is now a dealership service vehicle. Dealer
plates must not be displayed on any motor vehicle trailer or
boat that is hired for service or used as a wrecking
vehicle.
Texas Dealer Plate Limits
Dealer plate limits. The following
table from the Texas Department of Motor Vehicles' website
explains the dealer plate allowance guidelines. The number
of dealer plates you are issued depends on your license type
and the number of vehicles sold. Independent used motor
vehicle dealers, travel trailer dealers, utility trailer and
semi-trailer dealers, used motorcycle dealers and
independent mobility motor vehicle dealers are limited to
two the first year in business. Wholesale dealers may only
have one plate. Upon renewal of your dealer license,
independent used motor vehicle dealers, travel trailer
dealers, utility trailer, and semi-trailer dealers, used
motorcycle dealers and independent mobility motor vehicles
are eligible for a total of three plates. Wholesale dealers
are still only allowed one plate upon renewal of the
license.
Ordering Additional Dealer Plates
Additional plates. If it's renewal
time and you have already reached the maximum allowed
plates, you may submit a VIT document or other proof of
sales with your renewal application to receive additional
plates. Proof of sales for the previous 12 month period may
consist of a copy of the most recent vehicle inventory, tax
declaration or monthly statements filed with the taxing
authority in the county of the dealership's license
location. VIT must be submitted each time with the renewal.
If a dealer needs more plates than what are allowed, a
dealer may request a waiver of the plate limits by
submitting a statement why they need the additional plates
for the applicant's business. Wholesale dealers may never
apply for a waiver.
Metal Dealer Plate Log
The metal dealer license plate log.
You're required by state law to keep an accurate record of
your metal dealer license plates on a metal dealer plate
log. The dealer plate log must contain the assigned plate
number, the year make of the vehicle displaying the plate,
the VIN, that's your vehicle identification number, the name
of the person in control of the vehicle as well.
Always be sure to enter the plate number,
the vehicle model it was placed upon, the vehicle's VIN, the
date it was issued to the vehicle, the date it was returned,
and the name of any drivers of that vehicle. You must keep a
dealer plate log in your records at all times. This is a
state law. They also must be produced upon request during
any records inspection by the Texas Department of Motor
Vehicles' personnel during normal business hours. Any dealer
metal plates that are not accounted for would be voided by
the state.
Texas Metal Dealer License Plates can be obtained when you have a dealers license. Start your training now!
We are here to help you start your Texas motor vehicle dealership!
