Dealer Plates

Where Do You Buy Dealer Plates?

Dealer Plate

I regularly receive calls asking, “Don, I want to know how do I get dealer plates?”

I reply, “You can purchase them from you’re DMV when you receive your dealer license”

On the phone, today, I got this reply to that answer.  “It’s really hard to get a dealer license in my state, Florida, I just want dealer plates.  There’s this dealer here in Florida who says he will sell one to me.

I stopped the discussion and asked, “Do you understand why dealers are issued a dealer plate””

There was no answer.  So I’ll give the answer since you do not know why.

Dealers have inventory: vehicles.  They own these vehicles.

They are not registered with the state but the dealer holds the title.

These vehicles may need to be driven on a public street.  The reasons for this can be to move the vehicle from a storage lot to the dealer; to demo the vehicle with a potential buyer; to take the vehicle to a repair location, to move the vehicle to another dealer who has purchased it; to another dealership owned by the dealer; to drive the vehicle for emissions test.

The dealer purchases these dealer plates and the number is usually limited by the state.

Having plates on the vehicles while on public roads will keep the police from ticketing the dealer employee for driving a vehicle without a license plate.

A dealer license plate is for the convenience of the dealer

No dealer shall transfer, lend or permit the use of dealer plates by another dealer or any
other person.

After I explained the use of dealer plates, I asked the caller, “So how is the dealer going to sell you a plate”?  I counseled him that he should check the legality of a dealer license purchase with the Florida Department of Highway Safety and Motor Vehicles.

I told him, his problem was not understanding the workings of the license process and the auto dealer industry rules and regulations.

dealer plates separator

dealer license headquarters

dealer plates separator

 

About 


Comments

Dealer Plates — 5 Comments

    • James
      Dealer plate are only issued to licensed dealers. They are only to be used by dealers. Dealers cannot sell them just as you can’t sell your license plates
      Don

  1. Your website is impressive and a there is a lot of good information on here, I will definitely be purchasing some of your books!

    Here is a question I have in Pennsylvania where I will be getting set up as a dealer. What happens when a dealer acquires a car with a title from out of state? I understand the vehicle is linked to a business dealer plate and not registered, so does this mean that no sales tax is paid on the out of state purchase price?

    Let’s say I hold that car for re-sale for a while in PA then sell it to another out of state buyer, is the original title that was signed over to me just re-assigned to the new out of state buyer with no PA sales taxes due? I have looked up Pennsylvania’s dealer motor vehicle forms ect and Dept of Revenue website and can’t seem to find much on this scenario. I guess if the above were the case PA form MV-1 (assignment of new PA title) would be skipped all together? Appreciate any thoughts or advice here, thanks again!

    • Jason
      You get ALL the ebooks for the same price, you don’t have to select. Check them out.
      Now to your question.

      When a dealer buys a car from another state or within PA, there are sections to put the buying dealer information on the old title. It’s called assignment of the title. The dealer does not need nor request a new title. Dealers do not pay sales taxes on vehicles for resale.

      When the dealer sells the vehicle the “buyer” information is completed and title is given to the buyer. The buyer then registers and tiles the car in his state.

      A dealer plate is not linked to any vehicle. A dealer plate is a convenience so dealers can move cars without being stopped by a cop for having a plate on a vehicle. Of course the dealer plate is registered to the dealer but not to any vehicle.

      An out of state buyer is only required to pay sales tax to the state they live…. if their state requires it. If you, as a retail buyer, buy a car in Illinois, you owe no sales tax to PA.

      The reason your state website did not address the scenario in your question is because it’s not an issue.

      Hope that helps.
      Don

  2. thank you for your time today. You explained what I needed to hear in a moment. I will buy your books because you have freely given accurate information where others charge for bull.

Leave a Reply

Your email address will not be published. Required fields are marked *