Effective July 1 – Updates on Courtesy Vehicles, Documentation Requirements, Plate Limits, and Demonstration Use

1. Can I use dealer plates on courtesy vehicles?

Yes. Effective July 1, Minnesota law allows the use of dealer plates on courtesy vehicles provided to customers whose vehicles are being repaired or serviced. 

2. What documentation is required when using dealer plates on courtesy vehicles?

Dealers must complete and retain a Courtesy Vehicle User Agreement that includes:

• Names and driver’s license numbers of all authorized drivers
• Dates the vehicle will be used
• A written statement explaining the reason for use

A signed copy of this agreement must be kept in the courtesy vehicle at all times while in use.

3. Is there a standard Courtesy Vehicle User Agreement form available?

Yes. MADA Services has developed a Courtesy Vehicle User Agreement form that is available for purchase. Contact your MADA Services sales representative for more information.

3. Do I have to title a courtesy vehicle in the dealership’s name?

No. A vehicle used as a courtesy vehicle does not need to be titled in the dealership’s name if it is operating with a dealer plate.

5. What documents must be in any vehicle operating with a dealer plate?

Any vehicle displaying a dealer plate must carry:

• The operator’s valid driver’s license
• Proof of insurance
• A written statement explaining the reason for use

6. Do the dealer principal and full-time employees need to carry “a written statement explaining the reason for use” in the vehicle with a dealer plate?

Yes. The requirement to carry a written statement explaining the reason for use applies to anyone operating a vehicle with a dealer plate, including the dealer principal and full-time employees.

7. Is there a form to help comply with the dealer plate documentation requirements?

Yes. MADA Services offers a Dealer Plate Form that includes space to record the reason for use and other required information. This form is available for purchase through your MADA Services sales representative. If you are using MADA Service’s Courtesy Vehicle User Agreement form, you do not need to fill out a Dealer Plate Form for courtesy vehicles.

8. What is the difference between the Courtesy Vehicle User Agreement form and the Dealer Plate Form?

The Courtesy Vehicle User Agreement form is used specifically for courtesy vehicles operating with dealer plates. The Dealer Plate Form is used for all other vehicles displaying dealer plates, such as:

• Vehicles used by the dealer principal (or their spouse)
• Vehicles driven by full-time employees of the dealership
• Vehicles used by customers for demonstration purposes (up to 14 days)
• Vehicles used in a promotional event that lasts no longer than four days in which at least three motor vehicles are involved

9. How long can a customer now drive a demo vehicle with dealer plates?

Customers may now use vehicles for demonstration purposes for up to 14 days, an increase from the previous 48-hour limit.

10. Is there a limit on how many dealer plates my dealership can have?

Yes. Each dealership is now limited to 50 dealer plates total, including plates issued for trailers and motorized bicycles.

11. What if my dealership currently has more than 50 dealer plates?

According to DVS, dealers should destroy the excess plates. If you have questions about how to do this, please reach out to DVS’s Dealer Unit.