In Ontario, dealer plates play a crucial role in the automotive industry. Sometimes referred to as “special permit” plates, they provide licensed motor vehicle dealers with an easy way to operate vehicles for business purposes. Whether you’re allowing buyers to test drive vehicles or moving cars between lots, dealer plates provide mobility without the need to register your vehicle. However, their use is subject to strict regulations under the Highway Traffic Act to prevent misuse.
In the past, we have gone through the details surrounding Ontario’s green licence plate program. In this article, we dive into everything you need to know when it comes to dealer plates in Ontario.
What Is a Dealer Plate?
A dealer plate is a licence plate for motor vehicle dealers in Ontario. More specifically, used on vehicles that are owned by a dealer and part of their inventory for sale. These can only be issued to vehicles that are registered in Ontario. Visually, these have red letters and numbers on a white background with the word “Dealer” on the left side.
When Can I Use A Dealer Plate?
A dealer plate may be used on passenger-class vehicles that are a part of a car dealer’s inventory. Alternatively, they can be used for purposes related to the sale of the vehicle or for personal use of the vehicle. It is important to note that the plates and the vehicle must both be owned by the same dealer. Anyone authorized by the dealer may also drive a vehicle with dealer plates.
As of January 1st, 2021, the Ministry of Transportation has issued different communications to the enforcement community to clarify the current regulations. According to the Used Car Dealers Association of Ontario (UCDA), you can use these plates in the following situations:
- A motor vehicle that is being transported from an auction without a vehicle registration permit
- While transporting a new unregistered motor vehicle, where only the New Vehicle Information Statement (NVIS) is present.
Commercial Vehicles
When it comes to commercial vehicles, dealer plates may be used on commercial class vehicles. This includes pickup trucks and cargo vans. Similar to non-commercial vehicles, they must be owned by the dealer for the purpose of selling them. These types of plates may not be used on commercial vehicles that are currently in private use or on a commercial vehicle that is transporting goods. An example of this would be a parts truck.
According to the UCDA, as of January 1st, 2021, dealer plates can be used on light-duty commercial vehicles that are part of a dealer’s inventory of motor vehicles that are “loaded with goods” of a private nature or for private use. Alternatively, the manufacturer’s Gross Vehicle Weight Rating of the pickup truck does not exceed 3,400 kg.
It is important to note that pickup trucks displaying Dealer Plates while being operated for private use are not allowed to tow other vehicles.
When Can’t I Use a Dealer Plate?
These plates cannot be used in vehicles that are deemed unsafe. On top of this, they can’t be on any vehicle that the dealer themselves do not own. At the same time, dealer plates may be used on both “Fit” and “Unfit” status vehicles as long as they are drivable.
“Fit status” is the status found on most registrations. “Unfit status,” on the other hand, would normally occur when a customer purchases a vehicle that has not had a safety status certificate before registration. Contrary to popular belief, the status of the vehicle doesn’t indicate if the vehicle is actually safe to drive.
What Documentation is Needed?
When operating a vehicle that has dealer plates, there are a few key documents you should have.
The following is needed when driving a vehicle:
- Proof of insurance (Insurance pink slip)
- An original or a copy of the plate registration permit
- An original copy of the vehicle registration permit
If the vehicle is recently purchased and the permit is not available, carry a copy of the bill of sale to prove ownership of the vehicle. If you’re pulled over, a police officer may not accept this. However, it may help you fight the charge in court.
Obeying the rules when it comes to licence plates is critical to making sure you avoid any legal trouble. Remember, if you have any questions in regards to car insurance, don’t hesitate to reach out to us at isure today!
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