It centres on the dealer having given the DVLA proof that the car has been taken into stock for sale.
The DVLA said that where an ex-demonstrator is registered to a dealer, it may be driven on trade plates for valid purposes such as a test drive, providing the dealer has used the V5C/3 tear-off portion of the registration certificate to notify the DVLA that the vehicle is now in trade stock.
He may claim a road tax refund using a V14 form but not complete the SORN declaration.
If the V5C/3 portion is not submitted to the DVLA, and an ex-demonstrator is not displaying valid road tax, it must be declared SORN and not used on-road. AM recently reported that an employee of a north of England franchised dealer was fined for test-driving an ex-demonstrator on trade plates when it had been declared SORN.