Dealer guide
Trade plates. What they let you do, what they cost, and where dealers get caught out.
Trade plates let you move stock that isn't taxed or registered: a test drive, a run to the bodyshop, a car home from auction. They don't cover the school run, and they don't cover a car with no MOT. Here's the DVLA's rulebook in plain English.
12-month licence
£177
Cars and vans. Shorter licences from £97.35 if you start part-way through the year.
Apply with
VTL301
Plus a copy of your motor trade insurance certificate, in the same business name.
Arrives in
4 weeks
The confirmation letter and the plates come separately, for security.
What you can use them for
Only the purpose you put on your application, and only on vehicles in your temporary possession as a trader. Within that, the DVLA allows:
- A test drive for a likely buyer, wherever they want to go and back
- Delivering a car to where the buyer will keep it, and showing them how it works at handover
- Going to or from an auction, garage or anywhere cars are stored or sold
- Going to or from a bodyshop, paint, fitting or valeting workshop (not a public car wash)
- Going to or from an inspection or test, or a public weighbridge
- Road testing during or after a repair or modification
- Moving a car between your premises, or to and from another dealer or repairer
- Taking it to be broken up, or collecting a repossession
What gets you fined
- Putting them on a car registered to you, including your own car
- Leaving them on a parked car
- Giving anyone a lift, paid or not
- Carrying goods or a load, apart from the exceptions in the regulations
- Splitting a set across two cars, or lending them to someone else
- Using them after the licence has expired, or using damaged or altered plates
- Any journey that isn't one of the permitted uses, like popping to the shops
Misuse carries a fine of up to £1,000 or five times the duty, whichever is more. A false application, fraud, or letting someone else use your plates is up to £5,000.
Before every journey
- The car is safe to drive and has a valid MOT, or is exempt. Trade plates don't get round an MOT
- Your motor trade insurance covers this car and this driver
- Plates on the front and back, readable from 20 metres, on the outside of the car, and not covering its own number plates
- The journey is one of the permitted uses above
What a trade licence costs
Every licence ends on 30 June or 31 December, so the month you apply decides how long you get and what you pay. In January you can pick 6 or 12 months; in July, 6. Rates are from the DVLA's current VTL301 guidance and can change at the Budget, so check GOV.UK before you send it.
| You apply in | Ends | Months | Cars and vans | Motorcycles |
|---|---|---|---|---|
| January (12 months) | December | 12 | £177 | £125 |
| January (6 months) | June | 6 | £97.35 | £68.75 |
| February | December | 11 | £177 | £125 |
| March | December | 10 | £162.25 | £114.60 |
| April | December | 9 | £146 | £103.10 |
| May | December | 8 | £129.80 | £91.65 |
| June | December | 7 | £113.55 | £80.20 |
| July | December | 6 | £97.35 | £68.75 |
| August | June | 11 | £177 | £125 |
| September | June | 10 | £162.25 | £114.60 |
| October | June | 9 | £146 | £103.10 |
| November | June | 8 | £129.80 | £91.65 |
| December | June | 7 | £113.60 | £80.20 |
How to apply
- Get motor trade insurance in your business name first
- Fill in form VTL301 and say what you'll use the plates for, and whether you want car plates, motorcycle plates or both
- Post it to the DVLA with a copy of the insurance certificate (not the original) and the fee
- Plates and a confirmation letter arrive within about 4 weeks
Need more than one car on the road at once? Each set needs its own licence. Renew before it runs out: driving on plates from an expired licence is an offence.
Lost, moved or finished
- Lost, stolen or damaged plates: replace them with form VTL310
- New business address: form VTL310, and keep your plates
- New business name: a fresh VTL301, send the old plates back, and claim a refund with VTL308
- Stopping: return the plates with VTL308 and get back every full month left
Every trip is a cost on the car.
Collection from auction, the run to the bodyshop, the valet: they all come off the profit. StockBook logs every cost against the car it belongs to, so you see what each one actually made before you price the next.
Selling one now? Use the free dealer invoice template, or read what “sold as seen” really covers.
Questions dealers ask about trade plates
- What are trade plates?
- Red-on-white plates issued by the DVLA under a trade licence. They let a motor trader drive an untaxed or unregistered vehicle on the road for set business purposes, such as a customer test drive or delivering a car to a buyer.
- Who can get trade plates?
- Motor dealers, motor traders and vehicle testers: a business that sells vehicles, manufactures or repairs them, or tests other people's vehicles on public roads. A collection and delivery business qualifies only if that's all it does, or if it also manufactures or repairs vehicles.
- How much do trade plates cost?
- A 12-month trade licence is £177 for cars and vans at the rates in the DVLA's current VTL301 guidance. Every licence ends on 30 June or 31 December, so if you apply part-way through you pay a shorter rate, from £97.35 for six months. Rates can change at the Budget.
- Do I need insurance to use trade plates?
- Yes. The plates aren't insurance. The DVLA wants a copy of your motor trade insurance certificate with the application, in the same name, and the car must be insured for the journey you're making.
- Can I drive a car with no MOT on trade plates?
- Only if it's exempt. GOV.UK says trade plates can only be used on vehicles that are safe to drive, insured, and have a valid MOT or don't need one.
- Can I use trade plates on my own car?
- No. Displaying trade plates on a vehicle registered to you is an offence, unless you're a manufacturer using it for research and development. They're for stock and customers' vehicles in your temporary possession, not your runaround.
- Can I carry passengers on trade plates?
- Not for hire, reward, or as a lift. It's an offence to display trade plates on a vehicle carrying passengers for hire, reward, commercial or personal reasons. A likely buyer on a test drive is part of a permitted use.
- What is the fine for misusing trade plates?
- Up to £1,000, or five times the duty, whichever is more, for using them for a purpose that isn't allowed. Up to £5,000 for a false application, fraudulently altering or using plates, or letting someone else use them.
This guide summarises the DVLA's trade licence guidance (VTL301G) and isn't legal advice. The rules are in the Vehicle Excise and Registration Act 1994 and the Road Vehicles (Registration and Licensing) Regulations 2002; check GOV.UK for current rates before applying.