What is a Vehicle Dealer Plate?
In California, Vehicle Dealer Plates, also known as DMV Special Plates and Dealer Tags, are issued to Retail and Wholesale dealers, never to the public. Dealer plates allow Dealers to operate any vehicle they “own or lawfully possess.” Dealer plates allow dealers to operate the vehicle for personal or business use without transferring the title into the dealer’s name. No DMV registration fees or sales tax are due because the vehicle was purchased for resale.
The main Dealer Plate license number, such as “90210”, is the Dealer License number, which will be the same for each Dealer Plate.
Dealer Plates vs California License Plates
People are often confused about how Dealer Plates work. With regular license plates, Consumers visit the public DMV to register their vehicle, pay sales tax and registration fees, and receive two license plates assigned to that one vehicle.
With Dealer Plates, Dealers visit the DMV’s Occupational Licensing website and order their plates online. The Dealer plates are then assigned to the Dealer, never to a specific vehicle, and can be used on any vehicle in the dealer’s inventory.
How do you get Dealer Plates?
In California, obtaining Dealer Plates is only available to licensed vehicle dealers. There are two ways to get them:
- During the Application Process: When completing an application with the DMV Occupational Licensing, applicants can order the number of Dealer Plates needed for their vehicles.
- Existing Dealers: Licensed dealers can log into their DMV Occupational Licensing account to request replacements for lost or stolen plates or order additional ones.
Benefits of Dealer Plates
In California, Dealer Plates offer several advantages, maximizing the value of your Dealer License:
- Cost Savings: Vehicles with Dealer Plates are exempt from paying state sales tax and registration fees when purchased for resale. This exemption provides dealers with significant savings.
- Immediate Use: Dealer plates allow dealers to drive purchased vehicles immediately after they are purchased from a vehicle auction or a private sale without needing registration.
- Flexibility in Use: Dealer plates allow dealers to use vehicles for personal or business purposes, and employees can use the plates for work-related activities. This allows for the easy movement and management of the Dealer’s inventory and operations.
Vehicle Types
In California, Dealer Plates come in two sizes to accommodate different types of vehicles, providing the flexibility to cover a wide range of vehicles and ensuring that your entire inventory can be appropriately tagged for legal road use:
- Autos and Trailers: The DMV typically refers to these standard-sized plates as plates for “autos and trailers.” Examples include standard cars, SUVs, recreational vehicles, and trailers.
- Motorcycles and Snowmobiles: These smaller plates are specifically for motorcycles and snowmobiles and are designed to fit the specific dimensions of these vehicles.
What does DLR mean?
The abbreviation “DLR” on a California license plate stands for “Dealer.” This differentiates Dealer Plates from other DMV special plates issued to manufacturers, remanufacturers, or distributors to operate vehicles they own or lawfully possess.
Understanding the Number & Letter Combinations
These combinations provide a clear system for tracking and replacing plates, ensuring each plate is accounted for and properly managed.
The single number/letter combination that follows, such as 1A, 2A, 3A, or 4A, differs for each Dealer Plate.
- 1A: The “1” indicates this is the first plate issued to the dealer, and the “A” signifies the original plate.
- 1B: If the original plate “1A” was lost, stolen, or worn out and replaced, the replacement plate would be marked as “1B.”
- 1C: If the plate “1B” is replaced, the new plate will be marked “1C.”
- 2A: The “2” indicates that this is the second plate issued to the dealer.
This pattern continues for any subsequent replacements. For example, a Dealer Plate marked “90210 7C” would indicate that it is the seventh plate issued to a dealer within license #90210 and has been replaced twice.
How many Dealer Plates can you get?
California has no practical limit on the number of plates a dealer can order. When you place an order, the system shows that the maximum number is quite high, often in the hundreds.
Dealer Plate Rules
In California, the use of Dealer Plates is governed by specific DMV and California Vehicle Code rules and regulations. Understanding these regulations helps prevent misuse and ensures compliance with state laws. Here’s a breakdown of the key rules, including who has permission to drive with Dealer Plates for personal and business use.
Who Can Drive for Personal Use?
To drive for personal use with Dealer Plates, you must be listed as “active” on the Dealer License and have management of the dealership’s operations.
The personal use privilege is not extended to salespersons, family members, or others not listed on the Dealer License.
The roles that qualify for personal use include:
- Sole Proprietorship: The individual owner.
- LLC: Owners, partners, or Managers listed on the LLC and marked as active participants in the DMV portal.
- Corporation: Officers or Directors listed on the corporation and marked as active participants in the DMV portal.
- Partnership: Partners who apply for the license as individuals together.
It’s important to use official titles when listing roles on the LLC or corporation to simplify compliance and avoid issues. For example, a family member or friend may drive a vehicle with Dealer Plates if they are added to the LLC/Corporation and listed as a “participating member” on the DMV licensing portal.
Who Can Drive for Business Use with Limitations?
Those not listed on the Dealer License as active participants can drive vehicles with Dealer Plates for business purposes under certain limitations. These individuals often include:
- Employees of a Dealer: When acting within the course and scope of their employment, such as driving to/from an auction or during a commercial test drive.
- Drivers moving vehicles to or from Special Events: Must carry a letter of authorization from the dealer identifying the vehicle, duration, and event location.
- Prospective Buyers or Lessees: To test drive a vehicle for up to seven days. A salesperson is not required to be present, but if absent, the operator must carry a letter of authorization from the dealer identifying the vehicle, duration, and authorization to operate the vehicle.
- Licensed Salespersons: Individuals licensed as Salespeople by the DMV to the Dealer can drive vehicles for business purposes within the scope of their employment.
Driving Out of State with Dealer Plates
Vehicles owned by California dealers displaying their Dealer Plate are considered properly registered and may be driven out of state and even to other countries. This flexibility helps expand market reach and manage cross-border sales.
Although not required, we recommend carrying documents proving vehicle ownership when traveling outside of California.
Driving Out of Country with Dealer Plates
Although a dealer-owned vehicle displaying Dealer Plates is considered properly registered, it’s important to comply with all relevant regulations in the country you are traveling to. Check with the U.S. Customs and Border Protection for the latest rules for vehicles crossing the border. Be sure you have the proper international insurance coverage to avoid issues while driving abroad.
How much do they cost?
The cost of Dealer Plates in California is as follows:
- Auto Dealer Plates: $92/year for each (plus county fees, if applicable)
- Motorcycle Dealer Plates: $94/year for each (plus county fees, if applicable)
These annual fees are paid when dealers apply for or renew their Dealer License. Dealer plates have a similar structure to standard plates, displaying a month and year of expiration, such as “January 2024.”
Dealer Plates expire on the same date as the Dealer License.
Proper Placement of Dealer Plates
Dealer plates must be securely attached to the vehicle’s rear, covering or replacing the existing license plate. They cannot be placed on the dashboard or in the back window. Ensuring the proper placement of Dealer Plates is crucial for legal compliance and visibility.
Dealer License Plate Frames
Some dealers use strong magnets or easy-to-remove screws for mounting Dealer Plates, allowing for quick changes without tools. However, we always suggest using more permanent solutions to prevent theft, such as screws that cannot be removed by hand.
Custom Design Frames & Holders
Dealers can use custom license plate frames with their Dealer Plates. These frames can feature the dealership’s logo, branding, or contact information, making your plates secure and visually appealing.
Temporary Dealer Plates
Temporary Dealer Plates allow dealers to operate their vehicles while waiting for their actual metal plates to arrive in the mail. These paper plates are available online through the dealer’s DMV Occupational Licensing account and are issued when you order Dealer Plates, either after applying for the Dealer License or requesting additional plates.
These temporary plates have an expiration date, but the duration is typically long enough to ensure you receive the permanent plates before the temporary ones expire.
Dealer Plate Lookup
You can easily look up a Dealer Plate number on the DMV Occupational Licensing website. In California, the Dealer Plate number is the same as the dealer’s occupational license number.
To search, enter the first five numbers of the Dealer Plate number or the occupational license number. No additional information is needed. This tool can help you find a Dealer License by company name or address. Additionally, if you need to report a Dealer Plate, you can use this lookup to identify the owner and then contact the DMV’s compliance department.
Dealer Plate Insurance
There is no specific insurance coverage for Dealer Plates. Although the DMV does not require “proof” of insurance, no one (including dealers) may drive a vehicle without insurance.
Some insurance companies will let Dealers buy a personal policy for their personal use of vehicles. This would not cover their business use, such as test drives or displaying for sale at their dealership location.
Most dealers purchase “lot” insurance that covers their business and would cover all vehicles that you, as a dealer, own.
Frequently Asked Questions
- How long does it take to get Dealer Plates from the DMV?
The timeframe in California can vary depending on several factors, but the average wait is one to three months. You’ll receive temporary Dealer Plates in your DMV account immediately after becoming licensed, allowing you to use your vehicles while waiting for the permanent plates. - Can you drive with Dealer Plates at night?
There are no rules prohibiting the use of Dealer Plates at night. - Can you drive for Uber or rent a vehicle with Dealer Plates?
No. Dealer plates for ride-sharing services or rentals are prohibited, and Dealer Plates for any revenue-generating business, such as Uber or a tow truck, are prohibited. - What happens if you get pulled over with Dealer Plates?
Nothing should happen as long as you follow the rules regarding who can drive the vehicle. It’s advisable to keep a copy of the title in the car. If the driver is not listed on the Dealer License or is not a salesperson, they may need a letter of authorization. A letter or proof of authorization is necessary if the vehicle is being used temporarily, such as for a test drive. - Can you rent Dealer Plates from a licensed dealer?
It is illegal for a dealer to rent, loan, or share their Dealer Plate or Dealer License with anyone not listed on the Dealer License. Misuse could result in fines, having the dealer’s license suspended or revoked.
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