(a) Any manufacturer's agent or dealer in motor vehicles may apply for a dealer's license. The application shall be sworn to or affirmed and shall contain such information as the Director of Motor Vehicles may require. On presentation of an application properly executed and payment of the fee provided by law, the applicant shall be furnished a dealer's license and shall be entitled to purchase such number of dealer's license plates as he may desire. The plates furnished under this subsection shall bear the letter X and a number which shall be the same on all the plates furnished one dealer, and in addition each plate shall bear a different number. Dealers' license plates shall be used only in the operation of new and used motor vehicles for sale, and shall not be used on vehicles rented or sold, on vehicles loaned for more than five consecutive days or on vehicles used in the general business of the dealer. The Director may revoke a dealer's license if he finds that such license plates are being used in violation of this subsection.
(b) Temporary license plates may be issued to licensed dealers in motor vehicles in such number as may be requested, upon application accompanied by a proper fee, for use by purchasers of motor vehicles not to exceed 30 working days excluding Saturdays, Sundays and legal holidays, after date of purchase and pending procurement of regular license plates. Temporary license plates shall be made of heavy cardboard or similar material. The license plates shall be preprinted with a sequential number, no smaller than the numbers on regular license plates, prefixed with XX to designate temporary plates. Preprinted space will also be provided and designated on the plate and the dealer shall insert the following information: Date of issue of plate, date of expiration of plate (which shall be 30 working days excluding Saturdays, Sundays and legal holidays, after the date of issue), name of purchaser, serial number and description of vehicle and any such other information as the Director of Motor Vehicles may require. The dealer issuing such temporary license plates in lieu of regular license plates shall immediately notify the Director of Motor Vehicles and the Commissioner of Police of such temporary [license] plates issued on quadruple forms to be provided to the dealer by the Director of Motor Vehicles. The dealer shall record the same information on the form which he had recorded on the license plate and, in addition, he shall record the license plate number and such other information on the forms as the Director of Motor Vehicles may require. Within 24 hours, the original copy of the form shall be forwarded to the Director of Motor Vehicles and a copy to the Commissioner of Police, the third copy shall be given to the purchaser and the fourth shall be retained by the dealer issuing the plates. A fee in the amount prescribed in chapter 39 of this title shall be paid for each temporary license plate. The dealer shall be required to pay this fee when he requests that the temporary license plates be issued to him by the Director. The dealer is authorized to recover this fee from the customer when the temporary license plate is issued. Only one temporary license plate shall be required per vehicle and such license plate must be attached to the rear of the vehicle. Purchasers using temporary license plates shall deliver such plates to the licensing office of the Bureau of Motor Vehicles upon issue of regular license plates. A dealer, upon demand, shall immediately surrender any such temporary license plates in his possession to the Director of Motor Vehicles if, after investigation, the Director finds that the dealer has violated any of the provisions of this subsection and he shall therefore forfeit his right to dealers temporary license plates for a period of one year. Such temporary plates shall not be used for purposes for which dealer's plates are used pursuant to subsection (a) of this section.