How to get dealer plates in Alabama
What Alabama dealer plates cost, the types you can get, how to apply, and the rules on using them. Verified as of October 2026.
AL dealer plates at a glance:
- Issued by
- Alabama Department of Revenue (ALDOR)
- Cost per plate
- $25 per dealer plate (ALDOR fee list)
- Requirement
- Dealer regulatory license + county privilege license
- Use them for
- Inventory you own: demos, employee use, loaners
- Term
- Confirm the plate year with ALDOR
Informational only — confirm current fees and rules with the Alabama Department of Revenue (Motor Vehicle Division) before you apply.
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What Alabama dealer plates are
Alabama dealer plates come from the Alabama Department of Revenue (ALDOR), not the county. But the county is part of the path: you need your dealer regulatory license and the county privilege license before ALDOR will sell you a single plate. The rules live in Code of Alabama § 40-12-264.
The plates are cheap. The rules are the part to know. They only go on vehicles the dealership owns and holds in inventory, a customer test drive is capped at 72 hours, and there's a hard limit on how many plates a dealer can buy. Misuse costs $200 the first time and $500 each time after.
Types of AL dealer plates
For licensed new and used dealers, on vehicles the dealership owns and holds in inventory. ALDOR lists the fee at $25 per plate ($17 for a motorcycle dealer plate). The statute also adds a $2 issuance fee per plate, so confirm the total when you order. Fees can't be refunded or prorated.
A temporary plate for moving vehicles within your inventory, including vehicles offered for sale to other licensed dealers. $5 each under § 40-12-264(e). Wholesalers, rebuilders, and new and used dealers may operate under them. Not for tow trucks, service vehicles, or rental and lease units.
Only for manufacturers with a manufacturing facility in Alabama and a current manufacturer's license. Not something an independent used-car lot gets.
How to get dealer plates in Alabama
- 1
Get your dealer license first
Plates ride on a current dealer regulatory license. No license, no plates.
- 2
Buy the county privilege license
After the dealer license, buy the required privilege license at your county licensing office (Sections 40-12-51, 40-12-62 or 40-12-169, depending on what you sell). ALDOR issues plates once you show proof of both licenses.
- 3
Request plates through MyDMV
ALDOR takes dealer plate requests through MyDMV while your designated agent is logged in. Pay the per-plate fee plus the issuance fee. Fees are not refunded or prorated, so order only what you'll use.
- 4
Stay under your cap
Code of Alabama § 40-12-264 caps a used dealer at 10 combined dealer and motorcycle dealer plates and a new dealer at 35. ALDOR's own FAQ still says 5 for used dealers, so confirm your number with ALDOR before ordering. Dealers that filed title applications on 300 or more transfers in the prior license year can buy up to 25 more.
- 5
Keep the paperwork for audits
Report a lost or stolen plate to law enforcement and keep the report for audit. Return a mutilated or illegible plate to ALDOR for a paid replacement. If your license is revoked, forfeited, or you close, surrender all plates within 10 calendar days.
Rules on using AL dealer plates
- Only on vehicles the dealership owns and holds in inventory
- Who may drive: prospective buyers, owners, partners, corporate officers, and employees of the dealership
- A prospective buyer gets 72 hours on the plate, no more
- Free loaners to service customers, and loans to a high school driver-ed program, count as demonstrators. If you charge a fee, the dealer plate can't go on the car
- Never on rental or lease units, tow trucks, service trucks or vans, or other commercial vehicles
- Heavy trucks (more than 2 axles on the power unit or over 26,000 lbs) get one payload trip, max 72 hours, with a written permit describing the truck and the buyer
- Pull a vehicle out of inventory for your own use and it needs a regular Alabama registration and plate. Dealer plates can't be used to dodge registration or ad valorem tax
- Misuse is $200 for the first violation and $500 for each one after. Lying to get plates is a Class A misdemeanor plus a $1,000 civil penalty
Common questions
How much are dealer plates in Alabama?+
ALDOR lists dealer plates at $25 each and motorcycle dealer plates at $17. Code of Alabama § 40-12-264 also adds a $2 issuance fee per plate. Seven-day dealer transit plates are $5. None of these fees are refunded or prorated, so confirm the total with ALDOR before you order.
How many dealer plates can a used car dealer get in Alabama?+
The current statute, § 40-12-264(b), caps a licensed used dealer at a combined 10 dealer and motorcycle dealer plates and a new dealer at 35. ALDOR's FAQ page still shows 5 for used dealers, so ask ALDOR what it will issue. Either way, if you filed title applications on 300 or more transfers in the previous license year, you can buy up to 25 more.
Can a customer drive my car on an Alabama dealer plate?+
Yes, as a prospective buyer, for up to 72 hours. A service customer can also drive a free loaner on a dealer plate while their car is in your shop. If you charge for the loaner, the dealer plate can't be on it.
Can I drive a car on dealer plates for personal use in Alabama?+
Owners, partners, corporate officers, and employees may drive vehicles on dealer plates, but only vehicles the dealership owns and holds in inventory. Once you take a vehicle out of inventory for yourself, it needs a regular registration and plate.
Do I need insurance for Alabama dealer plates?+
ALDOR's plate FAQ notes a $5,000 civil penalty for failing to keep a blanket motor vehicle liability insurance policy. Keep that policy current for as long as your plates are out.
What's the difference between a dealer plate and a dealer transit plate in Alabama?+
A dealer plate is the standard plate for demos, employee use, and loaners on inventory. A seven-day dealer transit plate ($5) is a temporary plate for moving inventory, including vehicles offered for sale to other dealers. Wholesalers and rebuilders may use transit plates too.
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