1. (a) Wholesale motor vehicle auctions. A wholesale motor vehicle auction GDN holder who receives a consignment and delivery of a motor vehicle from a person who is not a GDN holder for the purpose of sale at auction shall:

   1. (1) remove and mark any license plate as void; and
   2. (2) destroy, recycle, or return any license plate as required in §215.158 of this title (relating to General Requirements for Buyer's License Plates).

2. (b) Public auctions.

   1. (1) Before offering a consigned vehicle for sale at a public auction, a dealer must remove any license plate and return the license plate to the vehicle's owner or destroy, recycle, or return the license plate in accordance with §215.158 of this title.
   2. (2) If the purchaser at a public auction is a Texas retail buyer, a dealer shall issue a buyer's license plate to the purchaser, unless the buyer has a general issue, specialty, personalized, or other qualifying license plate to transfer, and update the license plate database in accordance with §215.151 of this title (relating to License Plate General Use Requirements).
   3. (3) If the purchaser at the public auction is a dealer, export buyer, or out-of-state buyer, the selling dealer shall not issue a buyer's license plate.
   4. (4) Notwithstanding §215.150(c) of this title (relating to Dealer Authorization to Issue License Plates), if the purchaser at a public auction is an out-of-state buyer, the dealer shall issue a buyer's temporary license plate only if the purchaser requires this license plate to transport the vehicle to another state in which the vehicle will be titled and registered in accordance with the laws of that state.

3. (c) Other consignment sales.

   1. (1) Before offering for sale a consigned motor vehicle with a license plate owned by a person who is not a GDN holder, the dealer shall remove and return the license plate to the vehicle's owner. The dealer to whom the vehicle is consigned may use its dealer's temporary license plate to demonstrate the consigned motor vehicle to a potential purchaser.

   2. (2) Upon the sale of a consigned motor vehicle owned by a person who is not a GDN holder:

      1. (A) a dealer shall issue a buyer's license plate to a Texas retail buyer who purchases the consigned vehicle, unless the buyer has a general issue, specialty, personalized, or other qualifying license plate to transfer, and update the license plate database in accordance with §215.151 of this title;
      2. (B) a dealer shall not issue a buyer's license plate if the purchaser of the consigned vehicle is a dealer, export buyer, or out-of-state buyer; and
      3. (C) notwithstanding §215.150(c) of this title, if the purchaser of a consigned vehicle is an out-of-state buyer, the dealer shall issue a buyer's temporary license plate only if the purchaser requires this license plate to transport the vehicle to another state in which the vehicle will be titled and registered in accordance with the laws of that state.
   3. (3) An independent motor vehicle dealer who receives consignment and delivery of a salvage vehicle or total loss vehicle (as defined by the applicable insurance contract) for sale from a person who is not a GDN holder shall remove any license plate and destroy, recycle, or return the license plate as required in §215.158 of this title.

Source Note:The provisions of this §215.163 adopted to be effective October 9, 2025, 50 TexReg 6506.