You have to agree to use the plates only in a certain fashion and under certain conditions. You have to be moving selling inventory. There are unscrupulous individuals dealers out there that will set up dealerships and get as many plates as they can to put on the open market. No legitimate used car dealer is going to put dealership in jeopardy by letting his plates be used in such a manner.
Why would a legitimate dealer throw away money like that They would not…. Yes you can still get Dealer Plates, I just want you to know the real back story. Because people abuse these plates and the freedom that comes with them, states write tighter laws and regulations.
Why would they put their whole business at risk? I encourage you to go to your state DMV to get information, but remember they will almost always say you need a used car dealer license…no matter what you ask them regarding buying or selling vehicles as a business. Yes, your state DMV will tell you all this stuff, things you can do or not do. When you are a contracted agent or employee of a dealership, you are always acting legally as the dealership.
Read the information below and start the quiz whenever you're ready. You can come back to this page at any time. Q: Can I move a trailer using dealer plates? A: Yes, a trailer with dealer plates may be pulled by another vehicle. Q: Can a family member drive a vehicle that a dealer owns with dealer plates? A: No, unless they are listed on the dealer license -and- engaged in the management and control of the dealership. Q: Are Dealer plates ever registered to a vehicle?
A: No. Dealer plates are registered to the dealer, never the vehicle. Q: Can a Wholesale Dealer use dealer plates? If you stack several trailers on top of another trailer when transferring them to your dealership you cannot place a dealer plate on the bottom trailer. In this case the bottom trailer will need to be licensed in the dealership name because it is now a dealership service vehicle.
I once observed a large truck with a dealer license plate on it pulling a flatbed trailer full of ATVs. The flatbed trailer also had a dealer license plate on it. If the dealer driving the truck would have been caught, he would face two violations of dealer license plate usage along with severe financial penalties.
Dealer plates usually may not be displayed on any motor vehicle, trailer, or boat that is hired or loaned to others on any dealership service or wrecking vehicle. If you purchase a vehicle and place a dealer license plate on it with no intent to immediately sell the vehicle, you are avoiding the payment of sales tax on the vehicle, which is not allowed in any state. If a law enforcement officer sees the vehicle parked at Wal-Mart with a D-tag, it could be considered curbing, which is illegal in most state.
Driving demos as personal vehicles is not allowed in most states. Your state may even require you to pay the back sales tax on the demo you have been driving as a personal vehicle the last few years.
If you get into the habit of driving your demos as personal vehicles you are essentially avoiding the payment of sales tax which is prohibited in every state.
Vehicles that you hold for resale are not allowed to be driven as your personal vehicles.
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