Can a New York car dealer's staff use dealer plates to run errands like picking up parts or driving customers to and from the shop?

Plain-English summary

Tioga County's attorney asked whether car dealers were violating Vehicle and Traffic Law § 415 when staff drove dealership vehicles with dealer plates to transport customers or run parts pickups. Some dealers argued the practice was fine because the vehicles were "held for sale or demonstration."

The AG concluded the practice violates § 415. Dealer plates exist as a "limited use" registration alternative to ordinary individual vehicle registration. Section 415(8) lists the permitted uses: weighing, testing, dismantling, transporting or delivering, installation/improvement work, repossession or foreclosure work, demonstration of any manufacturer-owned vehicle, transporting the plated vehicle plus carried additional vehicles, and operation of vehicles owned or controlled by the dealer and "held for sale or demonstration." The statute also lists carve-outs that explicitly do not qualify (rental vehicles, tow trucks, commercial vehicles for purposes other than directly affecting sale or demonstration of that particular vehicle, and similar).

Some dealers read the "held for sale or demonstration" clause as authorizing any use of a sale-inventory vehicle. The AG rejected that reading. The clause is qualified by the statute's overall "limited use" framework. Carrying customers home or to work, or running parts errands, has nothing to do with the sale or demonstration of the particular vehicle. People v Christensen & Weiss, 250 App Div 470 (2d Dept 1937), reached the same result under the predecessor statute: dealer plates cannot be used for any activity not directly related to the sale or demonstration of the vehicle.

DMV's regulation at 15 NYCRR § 78.21(b) reinforces the result. It forbids dealer-plate use on vehicles owned by the dealer's family or employees and on "service cars," which DMV has confirmed includes cars used by service departments for parts pickup and customer transportation.

Violations carry real penalties: the Commissioner may suspend, revoke, or refuse to renew the dealer registration (§ 415(9)(b)), suspend or revoke the dealer plates themselves (§ 415(10)), and impose fines (§ 415(12)).

Currency note

This opinion was issued in 1997. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

What is the difference between dealer plates and ordinary registration?

Ordinary registration applies to a specific vehicle and allows unlimited use. Dealer plates are issued to a dealership and may be moved among the dealer's inventory vehicles, but only for the limited statutory purposes. The trade-off is administrative convenience for the dealer in exchange for restricted use.

Can a dealer use dealer plates to drive a customer on a test drive?

Yes. Demonstrating a vehicle for sale to a potential buyer is a permitted use under § 415(8). The customer is in the vehicle to evaluate it, which is part of the sale or demonstration of that particular vehicle.

Can a dealer use dealer plates to deliver a sold vehicle to the buyer?

Yes, transportation or delivery is explicitly listed in § 415(8). Delivery of the vehicle to a buyer is a textbook example.

What about a dealer mechanic driving a service-loaner home overnight?

That sounds like a "service car" use rather than a sale or demonstration use. Under DMV's regulation, dealer plates cannot be used for service-department transportation. The mechanic and the dealership should arrange properly registered vehicles for those uses.

What are the practical consequences if DMV catches a violation?

Section 415(9)(b) lets the Commissioner suspend, revoke, or refuse to issue or renew the dealer registration. Section 415(10) allows similar treatment for the dealer plates themselves. Section 415(12) authorizes fines. Beyond the formal penalties, a vehicle stopped without proper registration creates insurance and liability complications.

Background and statutory framework

Vehicle and Traffic Law § 401 (general registration) and § 410 (registration for transport, towing) work together with § 415, which provides for dealer and transporter number plates. Section 415(4) speaks of "limited use" by dealers. Section 415(8) lists the permitted uses and the exceptions. Sections 415(9)(b), (10), and (12) provide enforcement authority.

15 NYCRR § 78.21(b) (the Commissioner's regulation) makes specific uses unlawful, including dealer-plate use on family or employee vehicles and on "service cars" (which DMV has confirmed encompasses cars used for parts pickup and customer transportation).

People v Christensen & Weiss, 250 App Div 470 (2d Dept 1937), construed an earlier version of the dealer-plate statute the same way: dealer plates cannot be used for any activity not directly related to the sale or demonstration of a vehicle.

Citations

• Vehicle and Traffic Law §§ 401, 410, 415, including §§ 415(4), 415(8), 415(9)(b), 415(10), 415(12).
• 15 NYCRR § 78.21(b) (DMV regulation forbidding family/employee/service-car use of dealer plates).
• People v Christensen & Weiss, 250 App Div 470 (2d Dept 1937) (predecessor statute construed against non-sale/demonstration uses).

Source

• Landing page: https://ag.ny.gov/libraries-documents/opinions/opinions-year
• Original PDF: https://ag.ny.gov/sites/default/files/opinions/I_97-27_pw.pdf

Original opinion text

VEHICLE AND TRAFFIC LAW §§ 401, 410, 415; 15 NYCRR § 78.21(b). Vehicle and Traffic Law § 415 does not authorize the use of dealer number plates on vehicles used to transport customers or pick up supplies, as such use does not constitute the "sale or demonstration" of the vehicle or fall within other permitted uses under the statute.

June 13, 1997
Thomas R. Emnett, Esq.
County Attorney
County of Tioga
County Office Bldg.
156 Main Street
Owego, NY 13827

Informal Opinion
No. 97-27

Dear Mr. Emnett:
You ask whether a motor vehicle dealer violates Vehicle and Traffic Law § 415 when staff members drive dealership vehicles equipped with dealer number plates to transport customers from the dealership to other locations or to pick up parts from local stores. You indicate that some dealers in your county believe they are justified in using dealer plates in such a manner because the dealer-plated vehicles are held for sale or demonstration. Section 415 of the Vehicle and Traffic Law provides for dealer registration and states that "[a] dealer or other person qualifying for limited use of motor vehicles" may receive one or more sets of dealer and transporter number plates. Vehicle and Traffic Law § 415(4). The statute also permits registered dealers to operate vehicles to the extent provided in section 415(8) with dealer plates instead of obtaining individual vehicle registration as required in sections 401 and 410. Id. Dealer number plates may be used for all of the purposes for which transporter plates may be used. Id., § 415(8). These include the purpose of weighing, testing, dismantling, transporting or delivering the same, or for the purpose of moving such vehicles in connection with making installations thereon or improvements thereto, or the repossession or foreclosure thereof, or for the operation, for demonstration purposes, of any vehicle owned by a manufacturer, or for transporting or delivering the vehicle upon which the

2
plates are displayed and additional vehicles carried in whole or in part upon such vehicle. Id. The statute also provides that dealer number plates may be used for the operation of any vehicle owned or controlled by the registrant and held for sale or demonstration, except a vehicle rented to another, a vehicle used to transport passengers for hire, a vehicle commonly called a "tow truck" or "wrecker" and used by the dealer for such purposes, a vehicle equipped for the purpose of towing or pushing disabled or nonoperated vehicles or a commercial or suburban type vehicle used by the dealer for commercial purposes other than directly affecting the sale or demonstration of that particular vehicle. Id. The Commissioner of Motor Vehicles is authorized to suspend or revoke or refuse to issue or renew the dealer registration of any dealer who uses or permits use of dealer plates contrary to law. Id., § 415(9)(b). The Commissioner also can suspend or revoke the dealer number plates if they are used contrary to law and may impose fines for violations. Id., § 415(10), (12). In our view, the phrase "held for sale or demonstration" in section 415(8) is consistent with section 415(4), which authorizes issuance of dealer plates for "limited use". The Legislature obviously intended to regulate carefully the use of dealer plates so they would not inappropriately be substituted for individual registration of vehicles, which permits unlimited use. This intent is evident from the statutory scheme, including the enforcement provisions. The Legislature's decision to list a number of express exceptions in the statute, which bar certain dealer vehicles from eligibility for dealer plates, arguably could be read to authorize all uses not listed. In our view, such a reading would be inconsistent with the legislative intent to issue dealer plates for limited use. We believe the statutory language should be construed as providing examples of prohibited uses. There is no authority in the statute to use dealer number plates on vehicles engaged in running errands or performing the routine activities associated with a dealership's operation, and holding out such a vehicle as being available for sale or demonstration does not under the statute validate an otherwise inappropriate use of dealer number plates. People v Christensen

3
& Weiss, 250 App Div 470 (2d Dept 1937). In Christensen, the court read this statute's precursor, which similarly authorized use of dealer plates on vehicles "held for sale or demonstration" except those used primarily for towing or transporting property, for rental to another, or to transport passengers for hire, as prohibiting the use of such plates for any activity not directly related to the sale or demonstration of a vehicle. Regulations promulgated by the Commissioner are consistent with this view. They state that "it is unlawful, among other things, to use dealer plates on vehicles owned by members of the dealer's family or employees, and on service cars". 15 NYCRR
§ 78.21(b). While "service cars" is not defined, it seems reasonable that it includes cars used by service departments to get parts and transport customers to their jobs or homes. The Department of Motor Vehicles has confirmed that this is the intended meaning. If section 415 were to be construed as allowing a dealer, under the guise of holding a vehicle for sale or demonstration, to use that vehicle for services like transporting customers or picking up materials, dealer number plates could then be used for any conceivable purpose and for any length of time. This would not be consistent with the legislative intent to authorize the issuance of dealer plates for limited use in place of individual registration, which permits unlimited use of the registered vehicle. We conclude that section 415 does not authorize the use of dealer number plates on vehicles used to transport customers or pick up supplies, as such use does not constitute the "sale or demonstration" of the vehicle as contemplated by Vehicle and Traffic Law § 415. The Attorney General renders formal opinions only to officers and departments of State government. This perforce is an informal and unofficial expression of the views of this office. Very truly yours,

SIOBHAN S. CRARY
Assistant Attorney General