Which of the following is NOT a condition under which dealer in-transit license plates may be displayed?

Dealer in-transit license plates are designed for specific uses during the movement of vehicles within a dealership context. The correct answer highlights a condition that is not permissible under the regulations governing the display of these plates.

When a vehicle has been sold, it is no longer classified as belonging to the dealership; it has effectively changed ownership to the buyer. At this point, the vehicle should be registered in the buyer's name, and the dealer in-transit plates are no longer applicable. Using them on sold vehicles could mislead law enforcement or regulatory authorities regarding the vehicle's ownership status, therefore violating the intended use of the plates.

In contrast, vehicles operated by dealership employees, those for demonstration purposes, and vehicles being transported directly to a buyer are all valid scenarios for using dealer in-transit plates. These situations are covered under the regulation as they help facilitate the sale and movement of vehicles within the dealership functions.