An automated license plate locator and reader (10) which provides novel methods for 1) correcting for perspective distortion (16), 2) locating the license plate (20), 3) reading the license plate (22) and 4) improving the confidence rating of the output signal (228). The novel method for accommodating a wide range of viewing geometries involves warping the image to eliminate perspective distortion of the plate resulting from roadside camera placement. The novel method for locating plates involves correlating an "idealized" edge template of a license plate with an edge-enhanced version of the image. Edge enhancement and shadow reduction is achieved by applying a Laplacian operator over the input image. Performance is further improved by filtering out distracting edges within the resulting correlation surface and then locating the highest peaks within this filtered correlation surface. The location of the highest peaks provides the location of the plate. The novel method for reading the license plates involves performing a modified binary correlation of an image of the plate with reference characters to provide output signals indicative of the symbols on the plate. This output is correlated with valid license plate signals to improve the confidence rating thereof.