(a) General rule.--Dealer registration plates may be displayed on any vehicle which is owned or in the possession of a dealer or manufacturer and such a vehicle may be operated upon the highway, but only if the vehicle is being held for sale and is being used for any of the following purposes:

(1) For teaching students enrolled in an approved driver education course, how to operate a vehicle and for the new driver to take an examination for a driver's license.

(2) For testing, for safety inspection, repairing or transporting to or from a repair facility vehicles in the possession of the dealer within a radius of 25 miles of the place of business of the dealer. Vehicles in the possession of the manufacturer may be tested within a radius of 50 miles of the place of business of the manufacturer.

(3) For demonstrating vehicles in the possession of the dealer or manufacturer at no cost to a prospective purchaser.

(4) For loaning to customers whose vehicles are being repaired if the loan period does not exceed 30 days.

(5) For loaning to a prospective purchaser for a period not exceeding five days for the purpose of demonstrating the vehicles.

(6) For loaning to charitable organizations as defined by departmental regulations for use in charitable activities authorized by departmental regulations.

(7) For transit to or from a dealer, show, exhibit or auction where the vehicle is purchased by the dealer or offered for sale to prospective purchasers.

(8) For delivery to or from a second-stage manufacturer for or upon completion. Vehicles operated pursuant to this paragraph must be unladen.

(9) For transit to or from a prospective purchaser or customer for the purpose of demonstrating or loaning as permitted by subsection (a).

(10) For use in the conduct of the dealer's administrative functions, such as attending meetings or events, transporting department-required paperwork or transporting financial paperwork.

(11) For a trailer being held for sale hauling other trailers being held for sale as long as the combined weight of all trailers does not exceed 3,000 pounds.

(b) Personal use.--A vehicle displaying dealer registration plates which is owned by a dealer or manufacturer, is held for sale and does not exceed a gross vehicle weight rating of 7,500 pounds may be operated upon the highways of this Commonwealth for the personal use of the following:

(1) The dealer or members of his or her immediate family when the dealer is a sole proprietorship.

(2) The officers, partners or members of their immediate families when the dealer is a corporation or partnership.

(3) The regular employees of the dealer.

(c) Commercial use prohibited.--Except as specifically authorized by subsections (a) and (b), dealer registration plates shall not be used on vehicles for a commercial purpose, including parts or delivery vehicles, courtesy shuttle vehicles, wreckers, roll backs, truck tractors and trucks.

(d) Limited use.--Limited use of certain types of dealer plates shall be as follows:

(1) A motor driven cycle or motorized pedalcycle dealer plate shall be used only on motor driven cycles and motorized pedalcycles.

(2) A motorcycle dealer plate shall be used only on motorcycles, motor driven cycles and motorized pedalcycles. In addition, a motorcycle dealer plate may be used on other vehicles owned or in possession of the motorcycle dealer only when the vehicle is being demonstrated for a prospective purchaser.

(3) A trailer dealer plate shall be used only on trailers.

(e) Records.--Records shall be kept by the dealer in a manner prescribed by the department indicating which vehicles have been used as permitted by subsection (a)(1), (4), (5) and (6). The records shall indicate the name of the person to whom the vehicle was loaned. If the vehicle was loaned to a business or an organization with more than one driver, it is sufficient to list only the name of the business or organization. The records shall be open to inspection by representatives of the department and police officers.

(f) Penalty.--Any person who violates this section, in addition to any penalty, suspension or revocation imposed by the department, is guilty of a summary offense and shall, upon conviction, be sentenced to pay a fine of not more than $100.

(July 10, 1990, P.L.356, No.83, eff. 30 days; Aug. 5, 1991, P.L.238, No.26, eff. 120 days; June 11, 1992, P.L.266, No.47, eff. 60 days; Dec. 7, 1994, P.L.820, No.115, eff. 60 days; Dec. 21, 1998, P.L.1126, No.151, eff. 60 days)

1998 Amendment. Act 151 amended subsecs. (a)(2) and (7), (b) intro. par. and (e) and added subsec. (a)(8), (9), (10) and (11).

Cross References. Section 1336 is referred to in section 1335 of this title.