Request By:
Mr. Dandridge F. Walton
Attorney at Law
314 Wilkinson Street
P.O. Box 79
Frankfort, Kentucky 40601
Opinion
Opinion By: Robert F. Stephens, Attorney General; Elizabeth E. Blackford, Assistant Attorney General
You have written to request an update on the law regarding permissable uses of motor vehicles bearing dealer's tags. You pointed out that several questions relating to this topic were answered in OAG 61-177 and OAG 62-1152. According to your information citations are still being issued on the basis of those opinions. As KRS 186.070(1), the controlling statute, has been amended you have suggested that the answers given in those opinions are no longer correct, and have asked that we reconsider these questions.
In OAG 61-177 these questions were asked:
(1) May a used car dealer or his duly authorized employee, who is properly registered and identified, operate a vehicle bearing dealers plates to travel from Somerset to Cincinnati for the purpose of purchasing additional vehicles for resale or for the purpose of towing automobiles purchased back to Somerset.
(2) May a dealer or his bona fide employee use dealers plates on a vehicle which is transporting and selling automobiles, but which is not being held for immediate resale.
In 1961 KRS 186.070(1) read as follows:
". . . A motor vehicle bearing dealers plates may be used only by a member of the firm registered or by a bona fide salesman or employee of the firm for any purposes reasonably connected with the sale or demonstration for sale and delivery of the dealer's motor vehicles, or by any manufacturer or dealer licensed as provided above in transporting any motor vehicle over the highways of this state to his place of retail business from a manufacturer or wholesale dealer in motor vehicles. . . ."
It was the opinion of this office that the proposed uses of motor vehicles bearing dealers tags posed in those questions were illegal as they were not "reasonably connected with the sale or demonstration for sale and delivery" of the dealer's motor vehicles. That result is changed. Now KRS 186.070(1), as amended, provides:
". . . A motor vehicle bearing dealer's plates may be used on the highways by the licensed dealer or by a bona fide salesman or employe of the dealer at all times, or by any manufacturer or dealer licensed as provided above in transporting any motor vehicle over the highways of this state to his place of retail business from a manufacturer or wholesale dealer in motor vehicles. Any dealer in motor vehicles may allow any bona fide customer or the customer's employes to use the dealer's tag on the motor vehicle that is being demonstrated. This provision shall be limited to one (1) trip or demonstration to the same prospective customer. "
Amended KRS 186.070(1) has removed the purpose oriented restrictions placed on the use of motor vehicles bearing dealers tags by the earlier version. Thus, a licensed dealer, bona fide salesmen or employees may now use a motor vehicle bearing dealer tags, without reference to purpose, at all times. Therefore, under the law as it now stands, it is legal to use a motor vehicle bearing dealers tags in the situations posed by the above questions.
The questions asked in OAG 62-1152 read as follows:
(1) Is an automobile dealer permitted to use dealer plates on his personal car which is used in the course of his business as a demonstrator and is also for the general use of the dealer's family.
(2) Are salesmen who use cars assigned to them as demonstrators permitted to operate such cars bearing dealer tags for the salesmen's own business and pleasure.
(3) Is an automobile dealer, after he has been issued a license to operate an automobile agency, required only to use automobiles bearing dealer plates in the course of his business.
Again, under the earlier version of KRS 186.070(1) the answer to each of these was in the negative because the proposed uses were not for purposes "reasonably connected with the sale and demonstration for sale" of the dealer's motor vehicles. Again we would note that under amended KRS 186.070(1) the purpose related restrictions on the use of motor vehicles bearing dealer's tags have been removed. Such vehicles may now be used "at all times."
However, under amended KRS 186.070(1) restrictions still remain on who may use such vehicles. Except in instances where the car is being test driven by a potential buyer, the use of vehicles bearing dealer's tags is restricted to licensed dealers, bona fide salesmen and employees. Because of this restriction we will treat the questions raised by OAG 62-1152 individually.
In answer to question number one, a dealer may legally use a car bearing dealers plates, where the car is being used generally in connection with his business, for general family purposes since he or she, as a licensed dealer may use such a vehicle at all times. However, members of the dealer's family could not legally drive the car since they are not within the category of those for whom general use of a car bearing dealer tags is permissable.
In answer to question number two, salesman may use demonstrators assigned to them for their own business and pleasure.
In answer to question number three, a licensed dealer is not required to use cars bearing dealer plates only in the course of his business.
In summary, so long as the driver of a motor vehicle bearing dealer's tags is a licensed dealer, a bona fide salesman or an employe, any use of such vehicles is permissible.