Introduction to Dealer Plates in Florida

Section 320.13 of the Florida Statutes: Utilizing Extra Dealer Plates for Business Purposes

As a dealer, you have the privilege of purchasing additional dealer plates to facilitate your business operations. According to Section 320.13 of the Florida Statutes, these plates are specifically intended for use on your vehicle inventory while they are available for sale. The number of plates you can acquire is determined by the provisions outlined in your Garage Liability Insurance (GLI) policy.

What is Garage Liability Insurance (GLI)?

What it is, How it Works, and Key Coverages Included

Garage Liability Insurance (GLI) is a type of insurance coverage designed specifically for businesses operating in the automotive industry, such as car dealerships, repair shops, and service centers. It provides protection against liability claims arising from operations and activities related to the business.

GLI typically combines several types of coverage to address the specific risks associated with the automotive industry. These coverages may include:

1. Liability Coverage: This protects the business from claims and lawsuits filed by third parties for bodily injury or property damage resulting from accidents that occur on the business premises or during business operations.
2. Garagekeepers Coverage: This coverage protects the vehicles owned by customers or held in the care, custody, and control of the business. It provides compensation for damages or loss to customers' vehicles while they are stored, parked, or undergoing repairs at the dealership or service center.
3. Dealer's Open Lot Coverage: This coverage is specifically designed for car dealerships and provides protection for vehicles in the dealer's inventory. It covers damages or loss to vehicles caused by events like theft, vandalism, fire, or natural disasters.

The specific coverage and limits provided by GLI may vary depending on the insurance policy and the needs of the dealership. It is essential for dealerships to carefully review and understand their Garage Liability Insurance policy so they have adequate coverage to protect their business and assets.

Authorized Usage of Dealer Plates

Vehicle Operations Covered by Dealer Plates

Dealer plates can be used for various purposes related to your business. This includes vehicles operated in connection with your dealership, vehicles used for demonstration purposes, vehicles traveling to or from your dealership, loaner vehicles provided to customers during repairs (subject to insurance coverage), and service-type vehicles employed by the dealership. It's important to note that wrecker and tow trucks are exceptions and should not utilize dealer plates, nor should they be considered service vehicles in this context.

Restrictions on Dealer Plate Usage

Situations Where Dealer Plates Cannot Be Used

Certain scenarios prohibit the use of dealer plates, primarily involving compensation. If a service vehicle is engaged in the transportation of goods or passengers for compensation, or if a customer is charged for using a loaner vehicle, it is unlawful to employ dealer plates in such cases. Additionally, wrecker trucks, tow trucks, and car carriers, even if they are part of your inventory, cannot utilize dealer plates. Lastly, it is strictly prohibited to use dealer plates as a means to evade the titling and registration process or to avoid paying taxes.

Understanding Law Enforcement Perspectives

Law Enforcement Interpretation of Dealer Plate Laws

While the law permits the use of dealer plates in specific situations, it's worth noting that some law enforcement officers may interpret these laws more conservatively. Instances have been reported where dealership personnel received traffic citations while operating vehicles that were for sale but not perceived as being used in connection with the dealership's business. These experiences emphasize the need for caution when operating dealership vehicles with dealer plates, as law enforcement interpretations may vary.

Here are some examples of dealer personnel who have received traffic citations while operating vehicles that were in the dealership’s inventory and were for sale but, in the eyes of the law enforcement office, were not being used in connection with the dealership’s business:

• A dealership principal was driving his child to school in a dealership vehicle that had a dealer license plate. He was stopped by a law enforcement officer and was advised that driving a child to school is not part of the dealership’s business. He was issued a traffic citation for improper use of a license plate.
• A dealership sales associate was driving a dealership vehicle (as a demonstrator) with a dealer plate one Friday evening while he was accompanied by his girlfriend. The sales associate was stopped by a law enforcement officer, and he was asked what he was doing and where he was going. He stated he was taking his friend to a movie. The officer stated that taking his friend to a movie is not considered operating the dealership’s vehicle in the normal course of the dealership’s business. He was issued a traffic citation for driving with an unauthorized license plate.

While the Division of Motorist Services may have permitted the utilization of a dealer license plate in the aforementioned instances, law enforcement took a different stance. Hence, it is crucial to exercise caution when operating dealership vehicles with dealer plates. If you anticipate driving a vehicle using dealer plates, it could be beneficial to have a printed copy of the DMV Letter on hand in case you are pulled over by law enforcement. However, please note that its availability does not guarantee the avoidance of a traffic citation.

The Acquisition Process and Compliance

GLI Certificate Submission and Compliance Obligations

Acquiring dealer plates is a highly regulated process in Florida. To purchase dealer plates, your GLI certificate must be submitted to your Regional Motorist Services Office. The certificate reflects the authorized number of dealer plates you can obtain. The Regional Office will update the Florida Realtime Vehicle Information System (FRVIS) database with this information. Consequently, when purchasing dealer plates from the Tax Collector's Office or a license plate agency, they can only sell you the number of plates specified in FRVIS.

If you require additional dealer plates, you must update your GLI certificate and deliver it to the Regional Office for database updates in FRVIS. Failure to provide updated information may result in the inability to purchase additional dealer plates. It is crucial to promptly report any lost or stolen dealer plates to comply with Motorist Services regulations, as dealers may face plate audits during records inspections. Click to access DE18-003 Regarding Dealer License Plates (1)

Dealer plates play a crucial role in the day-to-day operations of Florida dealerships. Understanding the authorized usage, restrictions, and compliance obligations surrounding dealer plates is essential for maintaining legal and regulatory compliance. By adhering to the guidelines and promptly reporting any issues, dealers can effectively utilize dealer plates to support their business activities.

If you have any questions or comments about this feel free to reach out our team of lawyers at Auto Legal Group here.