Used motor vehicle dealers may obtain a combined total of 5 dealer and motorcycle dealer license plates.
Licensed new or used dealers may purchase an additional combined total of 25 dealer and motorcycle dealer license plates if they complete applications for certificates of title for 300 or more title transfers in this state during the previous dealer regulatory license year.
There are no limitations on the number of manufacturer and motorcycle manufacturer plates that can be purchased by manufacturers. (§40-12-264, Code of Ala. 1975)
If the dealer charges customers a fee for the uses above, dealer plates cannot be displayed on the vehicle. Motor vehicle dealers may display standard plates on vehicles in a dealer’s inventory. Ad valorem tax is not due when this occurs. (§40-12-264, Code of Ala. 1975)
If a plate becomes mutilated to the point that it is illegible, the plate must be returned to ALDOR, and a replacement plate will be issued upon payment of the appropriate fee (§40-12-265, Code of Ala. 1975).
If a dealer withdraws a vehicle from inventory, the licensed dealer shall purchase an Alabama license plate and register the vehicle.
Motor vehicle dealer, motorcycle dealer, and manufacturer license plates may not be used in lieu of regular issued license plates as a means of avoiding registration and ad valorem tax requirements.