A new law in Texas will soon make it easier for car owners to receive permanent metal license plates. House Bill 718, passed by the 88th Legislature in 2023, takes effect on July 1, 2025, and allows car dealers to issue metal plates on the spot when selling a new or used vehicle.
Previously, buyers were given temporary paper tags and had to apply separately for metal plates. This new law removes that step, letting car buyers leave the dealership with permanent plates already installed.
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The change comes after widespread abuse of the temporary paper tag system. Scammers acquired dealer licenses and printed hundreds of thousands of fake tags, which were sold to people trying to dodge car registration and insurance requirements.
These counterfeit tags caused significant problems, turning up on vehicles involved in crimes not only in Texas but also in other states like New York. A 2021 FBI investigation uncovered over half a million fraudulent paper tags sold by just three individuals nationwide.
House Bill 718 was initially slated for September 2023, then postponed to March 2025, and ultimately pushed to July 1, 2025, due to concerns from the Texas Independent Automobile Dealers Association about the availability of metal plates. Hopefully, they’ve managed to prepare in time.
Here’s what the new rules mean:
Buying from a Dealer
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When buying a vehicle from a Texas dealership, customers will now receive permanent metal license plates immediately.
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Buyers must keep their buyer’s plate receipt in the vehicle until the registration sticker arrives from the county office. This serves as proof of purchase and pending registration if requested by law enforcement.
Trading In a Vehicle
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If a customer trades in a vehicle with general issue plates, the dealer can transfer those plates to another vehicle within 10 days, as long as the plate matches the vehicle type.
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Specialty plates remain with the owner and do not transfer to the new vehicle.
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This provision comes under Senate Bill 1902, passed by the 89th Legislature in 2025.
Private Party Sales
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The process for private sales remains unchanged.
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Sellers must remove the license plates and registration sticker from the vehicle at the time of sale.
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Sellers may transfer their plates to another vehicle they own by visiting their county tax assessor-collector’s office, provided the plates match the vehicle type.
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Sellers must also file a Vehicle Transfer Notification with the Texas Department of Motor Vehicles within 30 days of the sale.
For Buyers in a Private Sale
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Buyers are required to apply for title and registration at their county tax office.
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They must also obtain new plates and register the vehicle in their name within 30 days of purchase.
