Which is true regarding depot plates?

Depot plates are a specific type of license plate used primarily in the context of vehicle sales and transportation. The correct answer indicates that depot plates may be used for transporting purchased vehicles. This use is essential for dealerships, as it allows them to legally transport vehicles from one location to another, such as from auctions to their sales lot or to deliver purchased vehicles to customers.

Depot plates are not the same as demo plates, which are intended for prospective buyers to test drive vehicles for a limited time. Unlike personal vehicles, depot plates are linked explicitly to vehicles for dealership use and are not permitted for personal purposes. Repair facilities typically do not use depot plates since their function is specifically targeted toward vehicle sales and transportation rather than repair activities. Thus, the correct understanding of depot plates is central to compliance with state regulations for vehicle dealers.