A Motor Trader’s Guide To Trade Plates

What Are Trade Plates?

Trade plates are temporary registration plates issued by the Driver and Vehicle Licensing Agency (DVLA). These plates allow motor traders to legally drive untaxed and unregistered vehicles on public roads. They save both time and money by eliminating the need to register and tax each vehicle individually.

Trade plates are issued to your business rather than for specific vehicles. You can transfer them between cars as needed, making them useful for dealers, mechanics, and motor trade professionals.

How Do Trade Plates Work?

Trade plates allow you to drive cars involved with your business, whether for repair, sale or testing. Instead of registering and taxing each car, you can apply for trade plates when you need to drive a vehicle temporarily.

However, there are a few restrictions when it comes to using trade plates. Firstly, trade plates cannot be used for personal journeys or activities unrelated to your work. You’ll also need to ensure they’re secured to the front and back of the vehicle. 

What Do Trade Plates Allow Motor Traders To Do?

Trade plates allow you to do the following activities without needing to tax your vehicles or stock:

• Test drive vehicles for checking a car after repairs or if a potential buyer wants to test drive it.
•  Deliver cars to your customers.
• Move stock between your garages or dealerships.
• Take cars to and from a pre-booked MOT test. 

Can You Park on the Street With Trade Plates?

You cannot park a vehicle with trade plates on a public road unless it is actively needed for business use. 

For example, this could apply if you are delivering a vehicle and need to make a quick stop. If a vehicle with trade plates is left parked on a public road for an extended period, it could result in fines or even the removal of the plates.

Can You Drive a Car Without an MOT on Trade Plates?

You can only drive a car without an MOT on trade plates only when travelling to or from a pre-booked MOT test or a repair garage to fix issues required for an MOT pass.

Outside of these scenarios, the vehicle must have a valid MOT to be legally driven on the road.

Can You Use Trade Plates at Night?

You can use trade plates at night, but they must be clearly visible. This means ensuring the trade plates on the front and back of your vehicle are well-lit so they can be easily read in low-light conditions.

Do I Need Motor Trade Insurance for Trade Plates?

It’s a common misconception that trade plates don’t need insurance, as many people mix up the rules regarding insurance and tax.

You need motor trade insurance with coverage extending to your trade plates. However, your trade plates are exempt from road tax. 

How Can I Get Trade Plates?

To obtain trade plates, you must apply through the DVLA by filling out the correct forms:

• VTL301 – For first-time applicants.
• VTL308 – For renewals.

You will need to provide:

• Proof that you operate a legitimate motor trade business.
• A valid motor trade insurance policy.
• Payment for the application fee.

Once approved, you will receive your trade plates and can legally use them for business activities.

How Much Does It Cost to Get Trade Plates?

The cost of trade plates varies depending on the duration you choose and the month of your application. Usually, a 12-month licence is £165, while it is £90.75 for 6 months. 

However, these prices may change frequently, so we recommend always checking the DVLA trade licence plates website for the latest costs before applying.

Motor Trade Insurance For Trade Plates at Unicom 

If you’re new to the motor trade world and need to get your business covered, you’re in the right place.

Our expert teams will be happy to find you the cover you need, whether it’s a simple road risk policy, mechanics cover or more bespoke combined motor trade insurance. Call us on 01133 120 554 to get a quote and the policy suited to your business.

Already have a trade plate? If you are an existing customer, you can register it in the Motor Industry Database (M.I.D) via our MID update page.