SAN ANTONIO – Starting on July 1, individuals attempting to purchase a vehicle will notice significant changes, as temporary paper license tags will be replaced with permanent metal license plates.
The Texas Legislature passed House Bill 718 during the 88th legislative session in 2023. The bill aims to tackle the issue of fraudulent paper license tags, according to the Texas Department of Motor Vehicles.
Under the new law, these changes will require adjustments across the Texas motor vehicle industry.
If you’re attempting to buy or sell a vehicle in Texas, here’s what to know:
Buying vehicle from dealer
Customers purchasing a vehicle from a Texas dealer will receive their metal license plates at the time of delivery. The plates will be displayed immediately, allowing drivers to operate the vehicle while they await their registration sticker.
Trading vehicle to a dealer
For those trading a vehicle to a dealer, the dealer will keep the license plates registered to that vehicle — unless they are specialty or personalized plates — and securely store them for assignment to the new buyer when the vehicle is sold.
Dealers will also be required to submit a Vehicle Transfer Notification (VTN) to the DMV to update the vehicle record with the date of the original sale.
Buying or selling vehicle in private sale
During private sales, the buyer will retain the license plates and register the vehicle in their name with the county tax assessor-collector’s office, the TxDMV stated.
Sellers of Texas-titled vehicles must submit a VTN within 30 days of the sale to update their motor vehicle record. To process the VTN, the TxDMV stated that the seller must submit the buyer’s name and contact information at the time of the sale.
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