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As far as I know there is no prohibition in New York state preventing the use of mobile billboards on vehicles.
However, there is a prohibition in New York City on the books.
It's enforcement has not always been regular, but lately there have been some fines issued.
NYC is probably the best market you'd want to advertise in, but it's the most dangerous in terms of your legal issues.
You'd probably be in an uncertain legal position.
It's not permitted to give legal advice on Just Answer, but I can say that I am not aware of another case where it has been an individual using a private vehicle for advertising purposes.
Generally the cases that have come up have been vehicles dedicated to advertising, and the impact they might have. The fines have mostly been upheld.
If it is an individual with a private car, you might be in uncertain legal waters - I would avoid NYC.
Otherwise, there are bans on parking a vehicle for the sole purpose of advertising: New York Code Title 34 §4-08 (n)(3) http://www.nyc.gov/html/dot/downloads/pdf/trafrule.pdf
It might be good to include provisions banning such activities with your clients in any agreement with them.
Again, not advice, just information.
Mobile advertising is permitted in most areas, there are just a few other major metropolitan areas that ban it.
I hope this answer has been helpful. I'd be happy to further clarify my response and follow up with any other questions. If you're satisfied with my answer, remember to hit the "accept" button. Bonuses and positive feedback are always appreciated! -Michael