November 2022
VADA likes to remind our members from time to time about the various VA Code sections that apply to dealers in running their businesses. Use of dealer tags is essential, but sometimes we need a refresher on the correct use of the tags. The relevant code section is reproduced below.
VA Code permits dealers to use dealer tags on vehicles in inventory as follows:
- By dealers and their spouses, dealer operators and their spouses, and dealership employees for “business, personal, and family purposes”. Please note, only the spouses of a dealer or dealer operator may use the tags. Spouses of other owners or employees do not qualify for use of a tag.
- By a bona fide prospective purchaser. The dealer must issue a permission to drive form (dsd27) to the customer. The permission is valid for up to 5 days and retain a copy. Only one subsequent permission form. So total use is limited to 10 days.
- By a customer when customer's vehicle is being repaired. The dealer must issue a permission to drive form (dsd27) to the customer and retain a copy. The permission is valid for up to 5 days. Only one subsequent permission form. So total use is limited to 10 days.
- By a person authorized by the dealer on a vehicle that is being driven to or from (i) a point of sale, (ii) an auction, (iii) a repair facility for the purpose of mechanical repairs, painting, or installation of parts or accessories, or (iv) a dealer exchange. The dealer must issue a permission to drive form (dsd27) to the person and retain a copy. The permission is valid for 24 hours only.
Dealer tags cannot be used on:
- Tow trucks, wrecking cranes, or other service motor vehicles.
- Vehicles used to deliver or transport other vehicles, portions of vehicles, vehicle components, parts, or accessories, or fuel.
- Courtesy vehicles.
- Vehicles used in conjunction with any other business.
Records of dealer tag use are part of the records a dealer must maintain for 5 years.
From time to time be see increased enforcement on the correct use of dealer tags. Penalties for misuse can include criminal charges as well as the loss of the privilege to use the tags. Dealer should review their procedures for using tags to ensure compliance with the Code.
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§ 46.2-1550. Use of dealer's and manufacturer's license plates, generally.
- A. Dealer's license plates may be used on vehicles in the inventory of licensed motor vehicle manufacturers, distributors, and dealers in the Commonwealth when operated on the highways of Virginia by dealers or dealer-operators, their spouses, or employees of manufacturers, distributors, and dealers as permitted in this article, which shall include business, personal, and family purposes. Except as otherwise explicitly permitted in this article, it shall be unlawful for any dealer to cause or permit: (i) use of dealer's license plates on vehicles other than those held in inventory for sale or resale; (ii) dealer's license plates to be lent, leased, rented, or placed at the disposal of any persons other than those permitted by this article to use dealer's license plates; and (iii) use of dealer's license plates on any vehicle of a type for which their use is not authorized by this article. Manufacturer's license plates may be used on company vehicles as defined in § 46.2-602.2 operated on the highways of Virginia as provided in § 46.2-602.2 and as permitted by this article. It shall be unlawful for any dealer to cause or permit dealer's license plates to be used on:
- Motor vehicles such as tow trucks, wrecking cranes, or other service motor vehicles;
- Vehicles used to deliver or transport (i) other vehicles; (ii) portions of vehicles; (iii) vehicle components, parts, or accessories; or (iv) fuel;
- Courtesy vehicles; or
- Vehicles used in conjunction with any other business.
- A dealer may permit his license plates to be used in the operation of a motor vehicle:
- By any person whom the dealer reasonably believes to be a bona fide prospective purchaser who is either accompanied by a licensed salesperson or has the written permission of the dealer;
- When the plates are being used by a customer on a vehicle owned by the dealer in whose repair shop the customer's vehicle is being repaired; or
- By a person authorized by the dealer on a vehicle that is being driven to or from (i) a point of sale, (ii) an auction, (iii) a repair facility for the purpose of mechanical repairs, painting, or installation of parts or accessories, or (iv) a dealer exchange.
The dealer shall issue to the prospective purchaser, customer whose vehicle is being repaired, or other person authorized under subdivision 3 of this subsection, a certificate on forms provided by the Department, a copy of which shall be retained by the dealer and open at all times to the inspection of the Commissioner or any of the officers or agents of the Department. The certificate shall be in the immediate possession of the person operating or authorized to operate the vehicle. The certificate shall entitle a person to operate with dealer's license plates under (i) subdivision 1 or 2 of this subsection for a specific period of no more than five days or (ii) subdivision 3 of this subsection for no more than twenty-four hours. No more than two certificates may be issued by a dealer to the same person under subdivision 1 or 2 of this subsection for successive periods.