What is a valid statement regarding dealer demo plates?

A dealer demo plate is specifically designed to permit the testing and demonstration of vehicles that are owned by a dealership. Since the purpose of a demo plate is to facilitate potential buyers in experiencing the vehicle before making a purchase, it is not limited strictly to passenger cars or personal use vehicles.

Using a demo plate on commercial vehicles is valid under certain conditions, as these vehicles may also be part of a dealer's inventory and available for demonstration to prospective buyers. This flexibility allows dealerships to showcase a range of vehicles—including commercial ones—effectively serving clients who may be interested in purchasing such vehicles for business purposes.

The other options suggest restrictions or misinterpretations of the demo plate's permissible uses, which do not align with its intended purpose or regulations governing the use of such plates.