News in 2010

In mid-July 2010, all Florida auto dealers will be required by law1 to electronically report the transfer of a metal license plate as it is being moved from one vehicle to another. The electronic report will create a temporary registration in the Florida Department of Highway Safety and Motor Vehicles (DHSMV) database, and should be completed prior to a customer driving off the lot. This is a change for dealers who have been issuing a temporary tag to notify the DHSMV of the transfer while the permanent metal plate reassignment is processed. Now, dealers can move a customer’s metal plate to the purchased vehicle on the spot and electronically report that transfer to the DHSMV without issuing a paper tag.

In one very important way, the new temporary metal plate transfer is similar to the process of issuing a temporary tag to notify the DHSMV. Temporary metal plate transfer reports only create a temporary registration, and do not replace the paperwork necessary to process a title and permanent metal plate transfer.

There has been confusion among dealers that this new requirement might necessitate a change in temporary tag vendors. Dealers should contact their temporary tag provider immediately to confirm that programming is in place that will allow them to comply with the new requirement. “Like many temporary tag vendors, we have known about this requirement since last spring,” said Jim Taylor, President of Auto Data Direct. “Our programmers have worked hard to provide a simple and efficient tool for our customers to easily meet this new requirement.”

How does this new process benefit dealers? Once a temporary metal plate transfer is recorded in the DHSMV system, the vehicle owner’s insurance takes responsibility for the vehicle, shifting much of the liability away from the dealer. In addition, by recording the temporary transfer, law enforcement will have immediate access to registrant and vehicle information. This not only protects car buyers from theft, it should prevent unnecessary traffic stops when a newly-transferred metal plate doesn’t match the registration information available to law enforcement. The added protection, as well as increased customer satisfaction and safety makes the new law a win-win-win situation for dealers, consumers and law enforcement agencies.

1If a transaction results in the immediate, permanent transfer of the metal plate, a temporary transfer of the metal plate is not required.