It used to be that when you sold or traded in a car, you sold the license plate and unused registration along with it. That was okay if you were selling the car in the final month of the registration, but hurt if you sold it right after renewing it. Simply put, you paid for lunch, but someone else cleaned your plate.
In 2002, the law was changed to allow a vehicle owner to keep the license plate - and its unused registration - and apply both to the new car. But you could only apply this "License Plate Credit" to a car you purchased after selling your old car, and you could not use the license plate credit if you sold your old car after you bought the new one. Plus you could only use the credit towards a new car, but not if you did not replace the old car, and each month the credit slowly evaporated.
Effective January 1, 2005, if you sell a vehicle, you will be allowed to either (1) apply your license plate credit towards a new car, OR (2) get a refund for your remaining license plate credit.
The State of Arizona's website will help you determine the amount of your license plate credit. Simply go to www.az.gov, and scroll down and click on "MVD, ADOT, Emissions." From there, scroll down and click on "Plate Credit." You then enter your license number and last name or full company name of the vehicle's owner, click "Continue," and there it is - what you paid for the vehicle license tax and how much of the credit remains.
Until January, the old law is still in force. So, if you sell a car on your own, and then you buy a new vehicle from a dealer before January, be sure to tell your salesperson about any license plate credit you may have so that you don't lose it. If you are thinking about selling your old car after buying a new one, you should consider transferring your license plate to the new car, and getting - for one time only - a $15, 30-day temporary tag for your old car.
Pay close attention to your license plate credit over the next few months so that Arizona doesn't clean your plate.
If you have any questions about personal injury/accident law please contact Rowley Chapman Barney & Buntrock and ask for Kevin J. Chapman at (480) 833-1113.
