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Travel Risk Professionals What are Trade Plates?
Trade plates are special registration plates issued to motor traders and vehicle testers, allowing them to legally drive unregistered vehicles on public roads. These plates are typically used by car dealerships, garages, and manufacturers for various purposes, such as test driving, delivering vehicles, or moving them between different locations. The primary purpose of trade plates is to allow the movement of vehicles that are not yet registered or taxed, therefore, simplifying the logistics for businesses involved in the motor trade.
For motor traders, trade plates offer significant flexibility and cost savings. Instead of registering and taxing each vehicle individually, which can be both time-consuming and expensive, traders can use trade plates to cover multiple vehicles. Read on to discover more about trade plates, their benefits, and how to apply for your licence!
Who can use Trade Plates?
Trade plates are a versatile tool used by a variety of businesses within the motor trade industry. They are primarily issued to dealerships, repairers, and vehicle testers, who can all use them for their own unique purposes.
Dealerships
One of the primary users of trade plates, as they often need to move vehicles that are not yet registered or taxed. Trade plates allow them to legally drive these vehicles on public roads for activities such as test drives with potential buyers, transporting vehicles between dealerships, or delivering cars to customers.
Vehicle Repairers
When vehicles are brought in for repairs, they may need to be driven for diagnostic purposes or to ensure that repairs have been successfully completed. Trade plates enable repairers to legally operate these vehicles on public roads without the need for individual registration and taxation.
Vehicle Testers and Manufacturers
These businesses use trade plates extensively during the development and testing phases of new vehicles. Trade plates allow them to drive prototype or pre-production vehicles on public roads to gather essential performance and safety data. This real-world testing is crucial for ensuring that new models meet regulatory standards and perform reliably under various conditions.
How to Apply for a Trade Plate
Find the Right Form
To apply for your first trade licence, you need to complete form VTL301. If you are renewing an existing licence, use form VTL318.- Complete the Application
Fill out the relevant form with accurate details about your business. This includes your business name, address, and type of business (e.g., motor trader, manufacturer, or repairer). Ensure all sections are completed and the form is signed. - Include your Required Documents
Along with your application form, you must provide a copy of your motor trade insurance certificate. This is crucial as it verifies that you have the necessary insurance coverage to operate vehicles under trade plates. - Submit the Application
Send the completed form and supporting documents to the DVLA at the address provided on the form. Make sure to include the appropriate fee for the trade licence. - Await Approval
The DVLA will review your application and, if everything is in order, issue your trade plates. Be aware that misuse of trade plates can result in significant fines and penalties, so ensure you understand the rules and regulations before using them.
Usage of Trade Plates
Using trade plates comes with some specific rules and regulations, and it’s important to keep these in mind to ensure that you are using them correctly and legally. Here are some key points to consider:
- Display Requirements
Trade plates must be displayed on both the front and back of the vehicle, or just the back for motorcycles. They should be placed in a vertical position and must be visible and easily readable from a distance of 20 meters. The plates must be on the outside of the vehicle and should not cover the existing number plates, except for motorcycles. - Usage Restrictions
Trade plates can only be used for the purposes specified in your application form. This includes activities such as test-driving vehicles, delivering vehicles, or moving them between different locations. They cannot be used for personal journeys or for carrying passengers for hire or reward. - Vehicle Requirements
Vehicles using trade plates must be roadworthy, insured, and have a valid MOT, or be exempt from needing an MOT. This ensures that all vehicles driven on public roads meet safety standards. - Prohibited Uses
It is illegal to use trade plates on vehicles that are registered to you, unless you are a manufacturer using them for development purposes. Additionally, trade plates should not be used on parked vehicles or for general carrying of goods. - Penalties
Misuse of trade plates can result in significant fines and penalties. For example, making a false declaration on the application form or using trade plates for unauthorised purposes can lead to fines up to £5,000.
By adhering to these rules, you can ensure that you use your trade plates legally and effectively, avoiding any potential legal issues.
The Cost of Trade Plates
The cost of trade plates and their validity period are important considerations for motor traders and vehicle testers. Trade plates are available in two main durations: six months and twelve months. The fees for these plates are structured to reflect the length of the licence period.
As of the latest information, the cost for a six-month trade licence is £90.75. For those opting for a longer duration, a twelve-month trade licence costs £165. These fees apply to all vehicles, ensuring that motor traders can choose the most cost-effective option based on their business needs.
The validity of trade plates is tied to specific expiry dates, either June 30th or December 31st. This means that the actual duration of the licence can vary slightly depending on when you apply. For example, if you apply for a twelve-month licence in January, it will be valid until December 31st of the same year, effectively giving you eleven months of coverage. However, applying in July for a six-month licence will cover you until December 31st, providing exactly six months of validity.
It’s important to note that the fees and validity periods are designed to offer flexibility and convenience for motor traders, allowing them to manage their fleet efficiently without the need for individual vehicle registration and taxation. By understanding these costs and durations, businesses can better plan their operations.
The Benefits of using Trade Plates in the Motor Trade
Trade plates can offer numerous benefits for motor traders, significantly enhancing efficiency and reducing costs. Here are some key advantages:
- Cost Savings
One of the primary benefits of using trade plates is the substantial cost savings on vehicle registration and taxation. Instead of registering and taxing each vehicle individually, which can be expensive and time-consuming, businesses can use trade plates to cover multiple vehicles. This is particularly beneficial for dealerships that frequently handle new stock or need to transport vehicles to various locations. - Efficiency
Trade plates streamline the logistics of moving unregistered vehicles. Whether it’s for test drives, delivering vehicles to customers, or transferring them between different sites, trade plates provide the flexibility to legally drive these vehicles on public roads. This reduces the administrative burden and speeds up the process of getting vehicles where they need to be. - Flexibility for Testing and Repairs
For vehicle testers and repairers, trade plates are invaluable. They allow for the legal operation of prototype or pre-production vehicles on public roads, enabling real-world testing. Repairers can also use trade plates to test drive vehicles post-repair, ensuring that all issues have been resolved before returning the vehicle to the customer. - Simplified Compliance
Using trade plates helps businesses stay compliant with legal requirements without the need for individual vehicle registrations. This simplifies record-keeping and ensures that all vehicles operated under trade plates meet necessary safety and insurance standards.
Compliance
Compliance with trade plate regulations is crucial for motor traders to avoid significant penalties and ensure things run smoothly. Trade plates are issued with specific rules and restrictions, and sticking to these is essential to maintain legal and operational integrity.
Firstly, misuse of trade plates can lead to hefty fines. For instance, using trade plates for personal journeys or on vehicles that are not roadworthy can result in fines of up to £5,000, which could cause significant financial strain on your business.
Secondly, non-compliance can lead to your trade plate privileges being taken away. Losing the ability to use trade plates can severely disrupt business activities, as it would necessitate the individual registration and taxation of each vehicle, significantly increasing operational costs and administrative burdens.
And finally, compliance ensures that all vehicles driven under trade plates meet safety standards. This includes having valid insurance and, where applicable, a valid MOT. Ensuring vehicles are roadworthy not only avoids legal issues but also protects the safety of drivers and the public.
Insurance Implications of Trade Plates
Trade plates can have a significant impact on Motor Trade Insurance policies, providing both benefits and specific requirements for cover. Here are some examples:
- Inclusion in Policies
Most Motor Trade Insurance policies include cover for trade plates under the road risks section. This means that vehicles driven with trade plates are insured for activities such as test drives, deliveries, and moving vehicles between locations. However, it’s essential to confirm with your broker that trade plates are covered, as some policies might require additional premiums. If you have any questions regarding the inclusion of trade plates in your Motor Trade Insurance, then feel free to give us a call on 0208 298 2100. - Registration on MID
When using trade plates, it’s crucial to register them on the Motor Insurance Database (MID). This registration ensures that vehicles driven with trade plates are recognised as insured, preventing issues with the law. Failure to register can result in the vehicle being flagged as uninsured, leading to potential fines and the vehicle being impounded. - Compliance with Regulations
Insurance policies typically require that trade plates are used in compliance with DVLA regulations. This includes proper display of the plates, using them only for authorised purposes, and ensuring the vehicles are roadworthy. Non-compliance can void the insurance coverage, leaving your business exposed to financial and legal risks. - Risk Management
Proper use of trade plates helps manage risks associated with driving unregistered vehicles. By ensuring that these vehicles are covered under a comprehensive Motor Trade Insurance policy, businesses can protect themselves against potential liabilities from accidents, theft, or damage during transit.
Renewal and Replacement of Trade Plates
Renewing or replacing trade plates involves a straightforward process, ensuring you can continue your operations without interruption. Here’s a quick guide so you know how the process works:
Renewing Trade Plates:
- Receive Renewal Notice
The DVLA typically sends a renewal notice before your trade licence expires. However, don’t worry if you don’t receive this notice, you can still proceed with your renewal. - Complete the Form
For renewal, you need to fill out form VTL318. This form requires details about your business and your current trade plates. - Submit Required Documents
Along with the completed form, you must provide a copy of your Motor Trade Insurance certificate. Ensure that the name on your insurance certificate matches the name on your application form. - Pay the Fee
Your application form should tell you how much your fee is, and this will depend on whether you are applying for a 6 month or 12 month licence. - Send the Application
Send the completed form and documents to the DVLA. If everything is in order, your renewed trade plates will be issued.
Replacing Lost, Stolen, or Damaged Trade Plates:
- Report to the Police
If your trade plates are lost or stolen, report this to the police and request a crime reference number. - Complete the Form
Fill out form VTL310 to apply for replacement plates. - Return Damaged Plates
If your plates are damaged, send the full set (including any undamaged plates) to the DVLA. - Pay the Replacement Fee
The fee for replacing trade plates is £18 for a vehicle set and £7 for a motorcycle set. - Submit the Application
Send the completed form, crime reference number (if applicable), and payment to the DVLA. Replacement plates will be issued once the application is processed.
By following these steps, you can efficiently renew or replace your trade plates, ensuring compliance and uninterrupted business operations.
Key Takeaways
In summary, trade plates can be a game-changer for motor traders, offering great flexibility and cost savings. These plates simplify the logistics of driving unregistered vehicles on public roads, making life easier for dealerships, repairers, and manufacturers. By cutting down on the need for individual vehicle registration and taxation, trade plates save both time and money, allowing you to focus on what you do best.
