A new state law will go into effect in Texas that makes it easier for car owners to get permanent metal license plates: The new law, House Bill 718, was actually passed by the 88th Legislature in 2023, but it goes into effect on July 1, 2025. It will allow car dealers to begin issuing metal license plates directly when they sell a car, whether it's new or used.

In the previous needlessly elaborate process, new car owners would receive a temporary paper license, and then apply for metal license plates. The new law will eliminate that requirement, allowing car buyers to get metal license plates when they purchase a car from a dealer.

The new law arose out of the huge imbroglio over temporary paper tags, which were designed to be used on a temporary basis while car buyers waited to receive their permanent plates. But scammers were obtaining car dealer licenses, then printing up hundreds of thousands of temporary paper tags and selling them to people hoping to avoid paying for insurance and car registration.

The paper tags gave Texas a black eye because they became a crime problem not just in Texas but nationally, turning up on cars involved in crimes in Texas, New York, and beyond. In a 2021 investigation, the FBI found more than a half-million fraudulent paper tags, sold by just three people to buyers across the country.

Bill 718 was initially designed to go into effect in September 2023, then March 2025, but the final bill bumped the deadline back to July 1, 2025. That's thanks to The Texas Independent Automobile Dealers Association, who were "concerned" about having an adequate supply of metal plates in such a short time frame. Let's hope they got it together!

The new rules are as follows:

Buying from a Dealer: Consumers purchasing a vehicle from a Texas dealer will receive metal license plates instead of paper temporary tags, driving off the lot with their plates already in place.

Until their registration sticker arrives from their county office, customers must keep their buyer’s plate receipt in the vehicle to be able to verify the purchase and pending registration to law enforcement.

Trading In a Vehicle: When consumers sell or trade in a vehicle with general issue plates, dealers may transfer the plates to another vehicle sold within 10 days, if the plates match the appropriate vehicle type, per Senate Bill 1902, passed by the 89th Legislature this year. (Consumers with specialty license plates will keep their plates.)

Buying/Selling a Vehicle in a Private Sale: The private party sales process remains unchanged: Sellers should remove their license plates and registration sticker from the vehicle when they deliver the vehicle to the buyer. The seller can request to transfer the plates to another vehicle they own—if appropriate for the vehicle type—by visiting their county tax assessor-collector's office.

Sellers should submit a Vehicle Transfer Notification to the Texas Department of Motor Vehicles within 30 days of the sale of the vehicle.

Buyers must submit a title and registration application at their county tax assessor-collector’s office and obtain new plates to register the vehicle in their name within 30 days of purchase.