What does the term 'demo plates' refer to in the context of vehicle sales?

The term 'demo plates' refers to license plates used for demonstration vehicles, which are typically used by dealerships to showcase cars to potential buyers. These plates allow sales representatives to demonstrate the vehicle's features and performance on the road while highlighting the selling points directly to customers. Demo plates facilitate the sales process by providing a way to easily identify vehicles that are meant for test drives or promotional events and differentiate them from vehicles that are sold or used for regular transportation.

The other options do not accurately depict the specific purpose of demo plates. Temporary registration for new vehicles does not relate directly to the demonstration aspect; these registrations are more about legal compliance for new cars on the road. Plates for vehicles used by private individuals and license plates for vehicle rentals refer to different contexts that do not involve the sales demonstration process, making them irrelevant when discussing demo plates in the vehicle sales setting.