Which statement correctly describes the state of dealer tags usage?

The statement regarding the usage of dealer tags that accurately reflects the rules is that they cannot be used on wreckers unless for hire. This is important because dealer tags are intended to provide a temporary means of operation for vehicles being sold or demonstrated by the dealer. Wreckers generally serve a distinct function related to towing and recovery; thus, their operation is regulated differently under Virginia law.

Allowing dealer tags only on wreckers that are actually hired for service ensures that these tags are used appropriately and maintains the integrity of the dealer tag system. This is crucial for distinguishing between commercial operations and private usage, which could lead to misuse or abuse of the system meant to support sales efforts.

The other statements, while they may seem plausible at a glance, do not align with the specific regulations regarding the intent and permitted usages of dealer tags. dealer tags are meant for vehicles that are part of the dealership's inventory for sale rather than personal vehicles or for general use.