Motor vehicle dealers next month will begin issuing metal license plates directly to buyers of new and used vehicles, ending the practice of placing temporary paper tags on a vehicle after a sale.

The rule change stems from HB 718, which was passed in 2023. The law takes effect July 1, 2025.

The law changes the way vehicles are licensed whether you buy new or used from a dealer, trade in your vehicle, or buy/sell as a private party.

Consumers buying or selling a vehicle in Texas on or after July 1, 2025, may notice changes in how their license plates are issued or transferred.

Buying a Vehicle from a Dealer

Customers who purchase a vehicle from a Texas dealer will receive metal license plates at the time the dealer delivers the vehicle, allowing them to immediately display the plates and operate the vehicle while awaiting their registration window sticker.

Trading In a Vehicle to a Dealer

 Effective July 1, 2025, when customer sell or trade in a vehicle with general issue plates, dealers will remove the plates and may transfer them to another vehicle of the same class sold within 10 days. Consumers with specialty and personalized license plates will retain their plates.

Buying or Selling a Vehicle in a Private Sale

 The process remains unchanged for person-to-person vehicle sales. Sellers remove their license plates and registration sticker from the vehicle and can transfer the plates to another vehicle they own—if appropriate for the vehicle class—by visiting the county tax assessor-collector's office. 

Sellers of Texas-titled vehicles should submit a Vehicle Transfer Notification (VTN) to the Texas Department of Motor Vehicles within 30 days. To process the VTN, the seller must provide the buyer’s full name, address, and telephone number, which should be collected at the time of sale.

Buyers must submit a title and registration application at their county tax assessor-collector's office and obtain new plates. For more information, visit Buying or Selling a Vehicle.