What feature distinguishes the dealer license plates from personal plates?

The distinguishing feature of dealer license plates compared to personal plates is that they are specifically valid only for vehicles owned by the dealership. These plates allow the dealership to operate vehicles for the purpose of sale, demonstration, or test drives. This ensures that the dealer can showcase their inventory while adhering to state regulations regarding vehicle use.

Dealer license plates are not meant for personal use or for any vehicle that is not part of the dealership's inventory. This differentiates them from personal plates, which can be used by individuals on any vehicle they own. The other options do not accurately capture the primary function of dealer plates, as they are not for use by everyone, not limited strictly to test-driving (though that is one use), and they are not confined solely to rental purposes. This clear designation reinforces the regulatory framework in place to monitor how vehicles are used in a dealership context.