Almost every single year the actual pace cars are not legal to drive on the streets, sometimes due to an "EX" VIN, but once they are strobe light equipped and the factory lighting altered, they're not always street legal. When moved outside of IMS they are usually trailered.
Of course they always have other street legal non-pace cars prepped as every year each of the 33 Festival Committee members are loaned one for a month or two prior to the race (the other 17 or so assigned to IMS) , so those additional 50 -100 cars were often referred to as "Festival Cars" and some years aren't even the same model as the pace car (like 2013). This year the folks at the Speedway adopted a "new policy" and starting this year they began calling these non-pace cars "Parade Cars." (Note that these car will sometimes have "Official Car" lettering on the door while the pace cars have "Official Pace Car.")
So the answer to your question is documented in your picture:
48 of 54 2016 Indy 500
PARADE Car.
BTW they are selling one of Chevrolet's two 2014 track-prepped Z-28 Pace Cars coupes at Barrett-Jackson in Vegas. (The Parade/Festivals were 2SS/RS 'verts.) Normally they make three track Pace Cars, one goes to the Speedway, and the other two go to the GM Collection. They do say it still has the pace car equipment and they usually have a "bill of sale" disclaimer if it's non-street legal status.
http://www.barrett-jackson.com/Event...ARO-Z28-198996