Final answer:
Dealers must consult local vehicle rental laws and obtain proper insurance coverage to rent out vehicles occasionally without a rental license, as regulations differ by area.
Step-by-step explanation:
In order for a dealer to occasionally rent a vehicle without a rental license, specific regulations must be adhered to, which can vary by jurisdiction. In some places, a dealer may be allowed to rent out vehicles as a way to offer test drives or as a courtesy while a customer's vehicle is being serviced.
However, regularly renting out vehicles typically requires a rental license, and doing so without one can be illegal and subject to penalties. Dealers interested in this practice should consult their local Department of Motor Vehicles (DMV) or equivalent authority and review the vehicle rental laws in their area to ensure compliance. Additionally, proper insurance coverage must be in place to protect the dealer and renters.