Starting July 1, paper temporary tag plates for vehicles are no longer available in Texas.
People will receive metal temporary plates at the dealership when they buy their car. But what about when someone buys a car from a private seller?
Our reader Chris Wagner asked Curious Texas, “What happens to people who sell their vehicles to another individual, or when you buy your car from another individual?” And Curious Texas investigated.
Curious Texas is a project from The Dallas Morning News that invites readers to join in our reporting process. The idea is simple: You have questions, and our journalists track down the answers.
The new law is part of House Bill 718, passed by the 88th Texas Legislature in 2023.
This new law is meant to help prevent fraud associated with temporary tags, making the car-buying process safer and more efficient for both consumers and dealers, according to the Texas Department of Motor Vehicles.
The new red plate explained
Adam Shaivitz, spokesperson for the Texas Department of Motor Vehicles, told The Dallas Morning News the process for buying and selling a vehicle in a private sale has not changed with the new law. However, the red Temporary Registration Plate is not part of that process.
“The new red Temporary Registration Plate replaces the one-trip and 30-day paper permits and is issued by county tax offices and TxDMV Regional Service Centers,” Shaivitz said. “This plate is issued in lieu of standard registration for vehicles that are not authorized to operate on public highways due to a lack of Texas registration or because the state or country in which the vehicle is registered does not have a reciprocity agreement with Texas.”
Here’s what to do for license plates when buying or selling a used car
Here is everything you need to know about selling a vehicle, buying a vehicle, or special situations such as gifting a car, divorce, or the death of a spouse, according to the Texas Department of Motor Vehicles.
Texas law requires vehicle buyers to transfer the title into their name within 30 days of the purchase date, according to the Texas Department of Motor Vehicles.
Sellers who do not ensure proper title transfer may be held responsible for tickets, tolls, or other violations, according to the department.
Selling a vehicle to a dealership
When selling or trading in a vehicle to a licensed dealer, the vehicle remains in the seller’s name until it is sold to an individual.
Filing a Vehicle Transfer Notification protects the seller from future violations committed by the new owner. Sellers should provide buyers with a signed title, an accurate odometer reading, and a signed application for Texas Title and Registration.
Selling to an individual
When selling a car to an individual, the seller provides a properly signed title, including the date of sale and odometer reading, along with a signed application for Texas title and registration that includes the listed price.
The seller should maintain written records of all transactions, including buyer contact information, sale date and vehicle details. There are several options available to the seller regarding the plates:
- Remove plates and registration sticker from the vehicle.
- Transfer the plates to a newly purchased vehicle of the same class.
- Keep the plates for future transfer to another vehicle, but the registration sticker is not transferred.
- If the seller does not keep or transfer the plates, they must be disposed of to protect against fraudulent use.
Buying from a dealer
If the vehicle is purchased from a dealer, the dealer files the title application on behalf of the buyer and provides a receipt showing the vehicle has been titled.
Buying from an individual
The Texas Department of Motor Vehicles advises buyers and sellers to meet at the county tax office to complete the title application.
In addition to the signed title, the seller provides an application for Texas title and registration, as well as any relevant documents, such as release of lien or power of attorney.
The buyer keeps a written record that includes the seller’s name and address; date of sale; and vehicle information and identification number.
Failing to title the vehicle within 30 days of the sale date may result in penalties.
Additionally, the seller provides a copy of the most recent vehicle inspection.
Gifting a vehicle
To gift a vehicle to a relative or qualifying individual, a title and completed application for Texas Title and Registration must be provided to the county tax office to title the car.
The title application must include an additional affidavit, with signatures from both the donor and recipient on the affidavit and the title application. All documents must be submitted to the county tax office.
Additionally, a $10 gift tax applies to a person who receives a vehicle from a relative, such as a spouse, parent, stepparent, sibling, guardian, or a nonprofit organization.
Divorce
If a vehicle is obtained as a result of a divorce decree — a court order that officially ends a marriage — a certified copy of it provided to the county tax office by the applicant.
If the decree does not list the vehicle, a properly signed title will be required.
Death of spouse
If the spouse had a will, the vehicle becomes part of probate — a court-supervised process of managing and distributing a deceased person’s estate
If the person did not have a will, an affidavit of heirship for a motor vehicle must be filed.
Avoid stolen vehicles
Knowingly purchasing a stolen vehicle can lead to criminal charges for the buyer. If the purchase is made unknowingly, the buyer can lose the car and money.
To prevent becoming the thief’s second victim, the state department of motor vehicles advises prospective buyers to verify that the title and registration match the name and address of the person selling the car, checking the person’s permanent address, confirming the vehicle’s insurance, and ensuring that the VIN is present and unchanged.
Always be suspicious about any deal that seems “too good to be true.”