NEW Dealer Plate ... Finally!

A (Brief) History

When we reported to our members, in the November 2001 Front Line, that the UCDA had approached the Ontario Ministry of Transportation ("MTO") with a plan to develop a new dealer plate, this was not the first time we had raised the issue. In fact, dealer plate concerns are as old as UCDA itself, going all the way back to our beginnings in 1984.

As many of you know, part of the problem with the old yellow plate was that the police, charged with the responsibility to ensure that vehicles are properly plated, insured and driven on our public roadways, had no way of knowing, at a glance, if a yellow plated vehicle was a dealer's car and therefore being legally used.

The yellow plate is a combination use plate, used by both dealers and any other business that deals with repairing, modifying or transporting vehicles. However, only dealers, who use the yellow plate on a vehicle in their inventory, have the legal right to use the plate for private use.

Because the yellow plates are relatively easy to obtain, we have also known for years that curbsiders have had access to them.

The effect of all this, of course, was that many dealers were being pulled over and delayed by the police, usually when driving their vehicles for personal use, for little reason other than the colour of the plate they were using raised "concerns".

As the number of reports we were receiving from dealers seemed to be increasing, we tackled the issue with a new intensity in 2002, following up on hopeful progress with the MTO in late 2001. We brought in stakeholders such as police, trade associations and regulators so the MTO could hear all points of view.

In a series of high level and productive meetings throughout 2002 and into 2003, the MTO heard not just from the UCDA, but also from police services themselves, that change was not only desirable but necessary. The police wanted a way to distinguish unauthorized users from those with the right to own a dealer plate.

Jim Hamilton of the UCDA worked closely with Sgt. Jack West of the Toronto Police Service and Murray Turner of the Ontario Police College in Aylmer in discussions with the Ministry.

Dealers Only!

The solution was to create a new plate THAT ONLY DEALERS COULD OWN!

As is often the case, MTO faced a number of complicated considerations to solve this problem. Not only did they have to consider dealers, but other users of the yellow plates, the necessary amendments to the law and implementation in a province as large as Ontario - none of these things were going to be easy!

So, it's a real breakthrough that, despite all these problems, the new dealer plate is a reality as of December 1, 2004!

Unlike the old yellow plate, the new plate is for dealers only. It's white with red lettering and the word "dealer" down the left side. It will cost $30.00 and the monthly charge for the sticker remains the same.

It will be phased in, with full implementation by February of 2007. Many dealers may want to purchase new dealer plates right away. But, if you wish, you may continue to use your existing yellow plates as "dealer" plates until their validation expires. Then you can purchase new dealer plates to replace them.

Only dealers will be able to purchase a dealer plate .. No curbsiders!

Personal Use Continues

Personal use of dealer-owned vehicles with dealer plates will continue, but the new regulation is much more clearly worded than the old one so that no doubt can exist about what the plate can be used for.

Dealer Plates may be used only on dealer-owned vehicles for:

purposes related to the sale of the vehicle and
personal use (except for use on commercial vehicles)

Service Plates

The old yellow plate will now be known as a "service plate" and will continue to be used by dealers and repair facilities for road testing and repairing vehicles that are not plated.

Dealers who also service or transport vehicles they don't own, may wish to keep a yellow plate for these reasons.

How to get a New Dealer Plate

You can obtain a new dealer plate from your local licence office, if the office has a valid Dealer Authorization Letter on file. If they don't, you'll need to show your OMVIC dealer certificate and driver's licence or other ID.

Please be aware that, at least in the early stages, the supply of new plates may be scarce.

Call the UCDA's legal department should you have any questions.

For more details see our list of Frequently Asked Questions here.