When may dealer demo plates be used on motor vehicles?

Dealer demo plates are specifically intended for use in connection with a dealership’s demonstration and promotional activities. The correct answer emphasizes that these plates can only be used when they are properly registered and assigned to the dealership. This ensures that the use of demo plates aligns with legal and regulatory requirements, as well as maintaining accountability and traceability of the vehicles being showcased.

Using demo plates improperly can lead to complications, such as liability issues or violations of state laws. While there may be contexts where dealer demo plates could be used for personal use, showcasing at public events, or during customer test drives, the critical requirement is that the plates are assigned correctly to the dealership. This assignment ties the vehicle's use to the dealership’s legitimate business activities, allowing for promotions and test drives while preventing misuse. Therefore, the emphasis on proper assignment directly addresses the legal framework surrounding demo plates.