Updated 4th June 2024
Everything Motor Traders need to know about trade plates
A trade plate is a temporary number plate used by motor traders or vehicle testers to save them the cost and time to register and tax every vehicle temporarily in their possession.
Trade plates should be displayed anywhere at the front or rear of a vehicle and MUST NOT cover the original plates.
This blog tells you everything you need to know about trade license plates:
- Why do motor traders need trade places?
- Do you need trade plates?
- When to use trade plates
- How to apply for trade plates.
- How much do traders’ plates cost?
- What are the rules for using them?
We also explain what trade plates mean for your motor trade insurance policy and how Tradesure’s experienced and reliable team can help.
Do motor traders need trade plates?
As a motor trader in the UK, you’ll need trade plates for cars temporarily in your possession in order for them to be legally driven on public roads.
Trade plates are needed for any vehicle owned by a car trader, dealer, or manufacturer of an unlicensed car. This means that any car in your possession as a motor trader must have a trade plate, even if you’re only driving it on the forecourt of your premises.
If you are in the motor trade industry then yes, you do need trade plates. Car dealers, automakers and vehicle service providers (including those handling collection and delivery) rely on trade plates. If you’re in the business of building trailers, offering valet services, fitting accessories, or conducting vehicle tests, trade plates are a must. These plates offer convenience and cost savings for motor traders. Instead of dealing with paperwork for registering and taxing each vehicle separately, you can just attach your trade plates to the vehicle you’re using.
WHEN DO I USE TRADE PLATES?
Trade plates are useful in a broad range of scenarios.. Some common examples you might find yourself using trade plates include:
- Road testing a vehicle following manufacture, repairs, or servicing
- Driving a vehicle that you have purchased back to a garage or place of work
- Allowing potential customers to test drive a vehicle
- Moving the vehicle to an MOT station
How do I apply for trade plates?
To apply for trade plates you need to head to the DVLA. Trade licences last six or twelve months, expiring on 30th June or 31st December. This means if you are new to the motor trade industry and you are looking to purchase trade plates for the first time, you can get trade plates for between seven to eleven months as they will still expire either in June or December.
What forms are there to complete?
There are four forms in total, but you need only fill out one depending on what type of motor trade business you’re in.
Ensure to download and complete form VTL301 before proceeding with your application. It is imperative to possess motor trade insurance and submit a copy of your Motor Trade Insurance Certificate alongside the form. Without the appropriate insurance, your application will not progress.
It is essential that the name on your insurance certificate matches the name provided on the application form. Failure to possess a Motor Trade Insurance Certificate will result in delays or rejection of your application.
During the license application process, you will specify your preference for plate sets:
- Plates for both vehicles and motorcycles
- Plates exclusively for vehicles
- Plates exclusively for motorcycles
Upon successful application, anticipate receiving a confirmation letter and your trade plates within four weeks. These items will be dispatched separately for your convenience.
- If you’re applying for trade plates for the first time, you need to complete the VTL301
- If you want to renew your existing trade plates then you need to complete the VTL305
- If you wish to cancel your trade licence and therefore no longer need your trade plates, complete form VTL308
- If you want to apply for a duplicate or replacement trade licence (or plates) then complete form VTL310
There is a wealth of information on the DVLA site, as well as guidance on how to help you complete the forms.
How much do trade plates cost?
The DVLA’s pricing guide for buying trade plates is below*.
Month of application | Expires | Valid for (months) |
Rate of duty for all vehicles |
Rate of duty for bicycles and tricycles |
January | June | 6 | £90.75 | £64.35 |
January | December | 12 | £165.00 | £117 |
February | December | 11 | £165.00 | £107.25 |
March | December | 10 | £151.25 | £85.80 |
April | December | 9 | £136.10 | £96.50 |
May | December | 8 | £121.00 | £85.80 |
June | December | 7 | £105.85 | £75.05 |
July | December | 6 | £90.75 | £64.35 |
August | June | 11 | £165.00 | £117 |
September | June | 10 | £151.25 | £107.25 |
October | June | 9 | £136.10 | £96.50 |
November | June | 8 | £121.00 | £85.80 |
December | June | 7 | £105.85 | £75.05 |
*correct as of 4th June 2024. Check the gov.uk site here for up to date information.
WHAT ARE THE RULES AROUND USING TRADE PLATES?
Trade plates are reserved exclusively for authorised motor trade activities. Think of them as permits allowing temporary vehicle mobility for specific business purposes. They’re not a green light for personal errands or joyrides.
Here’s the catch: strict limitations apply. You can only use one trade plate per vehicle at a time, and keeping an unused vehicle on the road is a no-go (unless it’s broken down, of course).
Breaking the rules comes with hefty consequences. Misusing trade plates could land you fines as high as £5,000. Not exactly a risk worth taking, is it? So, keep it professional and legal, and everyone stays happy, especially your business.
TRADE PLATES AND MOTOR TRADE INSURANCE
While many motor trade policies cover trade plates, it’s crucial that the name on your insurance certificate matches the application exactly. Think of it as a handshake agreement – they need to know who’s responsible.
Next, don’t forget to register your trade plates on the MID, like getting them an official ID. This helps keep everything above board and avoids any unnecessary attention from the authorities. Remember, uninsured driving is a no-no, and temporary plates without proper registration can flag you down for potential fines or even vehicle impoundment.
Need help with your motor trade insurance?
The Tradesure Insurance team have decades of experience and will be happy to help you with any trade insurance queries you have. Give us a call on 0121 248 9300 and we’ll get you a quote on the cover you need.
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